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Flashcards in 1920s Boom Deck (22):
1

Why was there a boom in the 1920s?

-financial factors
-republican policies
-consumerism
-growth in key industries
-technological changes
-underlying factors

2

Why was there a boom in the 1920s? (Financial factors)

While most other countries were still recovering from WW1's damage, America used this to their advantage. (they only joined in 1917)

Other countries bought supplies from the USA. Many other countries also borrowed large sums of money from America.

The USA took over European markets during the war.

3

Why was there a boom in the 1920s (republican policies)

Coolidge limited the role of government in the economy and reducing the tax burden on the rich. He gave the USA a good example of what Americans could achieve with hard work and a little government interference (as they had a laissez-faire attitude)

4

Why was there a boom in the 1920s (consumerism)

As profits increased, so did wages. Some workers were able to buy consumer luxuries often using credit.

Use of electrical power became a lot more common in 1912 only 16% of Americans lived in electrically lit homes. By 1927 this number has risen by 63%. This encouraged a much wider use of electrical goods such as: irons, ovens, washing machines and telephones. This resulted in the oil usage doubling and gas usage quadrupling.

5

Why did the USA experience a boom in the 1920s? (Growth in key industries)

Growth of key industries helped others to grow too. For example he growth of the car industry benefitted the rubber and glass industry. Also the developments of electricity helped new industries to grow making things like vacuum cleaners and fridges.

6

Why did the USA experience a boom? (Technological changes)

The USA led the world in advances in technology. The of electricity provided a more reliable, cheap, flexible form of power. This was very useful factories and helped in the production of fridges, radios and hoovers. Things such as the conveyer belt and assembly line helped to speed up the production of these things. New materials were made.

7

Why did the USA experience an economic boom (underlying factors)

The USA had a big supply of raw materials such as: oil, coal, wood and iron. They had also allowed immigration unlike most countries and were able to use immigrants seeking jobs for cheap labour.

8

The stock market boom process

Person buys a 'share' in a company. They now own a small part of that company.

Because of the boom, the company makes high profits.

Because they company is performing well t is now worth a lot than before.

The person sells their 'shares' receiving a lot more money than they originally paid.

9

Reasons for the increase in buying/selling shares. (Key to prosperity)

The stock market seemed to be the key to prosperity. After the share prices were rising fast and 1.1 billion shares were sold.

10

Reasons for the increase in buying/selling shares. (Confidence)

People who were confident about the market borrowed money so that they could buy shares. The possibility of buying shares 'on the margin' jelled speculation further.

11

Reasons for the increase in buying/selling shares. (Involvement)

As the stocks and shares rose dramatically, it because ordinary for working people to become involved.

12

Reasons for the increase in buying/selling shares. (Easy to borrow)

Another reasons is that it was very easy to borrow money and this made more people free to buy shares.

13

Reasons for the increase in buying/selling shares. (Greedy)

Americans at the time became greedy as they wanted to be the richest and the best. In order to be successful and achieve the American dream.

14

Reasons for the increase in buying/selling shares. (Encouraged to trade shares)

People were encouraged to trade shares because they believed it as an investment in the glorious American future that blessed the land.

15

Reasons for the increase in buying/selling shares. (Greedy)

Americans at the time became greedy as they wanted to be the richest and the best. In order to be successful and achieve the American dream.

16

How did Ford change the car industry in the 1920s?

- he introduced a new car 'Model T ford' this was a black car that was repeatedly made in the exactly the same way; making it easier to produce.

- using the assembly line, he created many more cars in a lot less time this resulted in the workers getting tired so he increased their salary and therefore more people wanted to work for him

- he also made cars much cheaper and affordable for most average people

17

What was the impact of Fords changes?

- cars became much more popular because they were so much cheaper

- Ford established plants in Asia, Australia, Canada, South America and South Africa

- by 1925 half the worlds cars were Ford

- His techniques were el effective they they were adopted by other US car manufacturers

18

What were the benefits of the changes in the car industry?

- the car industry used so much steel, wood, petrol, rubber and leather that it provided jobs for more than 5 million people

- supermarkets were introduced ( people could carry more as they no longer had to walk)

- hire purchase became a way of life for most Americans

- new roads were built

- farmers were able to get to local towns in a lot less time than before

- owning a car was no longer a rig person privalage. One car to every 5 people in the USA in 1820s.

19

Industrial growth in the 1920s ( department stores)

In the 1920s department stores became more and more popular, which resulted in more and more people buying consumer goods and electrical appliances. Chain stores opened in the cities and the USA had the first ever supermarket. The new shops allowed customers to go and get what they want angie rather than having to go to the shop counter.

20

Industrial growth in the 1920s ( advertising)

Became more popular because more and more people want to advertise their companies. New advertising techniques included: eye- catching colour, catch phrases, radio, cinema and magazines.

21

Industrial growth in the 1920s ( Transport)

There was a huge increase in growth of road, trucks and buses. Air travel became possible and by 1929 there was 162,000 domestic and commercial flights. May 1927 was the first solo trans-alatinc flight from New York to France

22

Industrial growth in the 1920s ( Construction)

Growth in the economy led to greater demand for buildings of every sort. The development of new materials enabled the construction of new taller types of buildings. Dependent industries also experienced a positive knock-on effect which resulted in growth manufacture of bricks, skyscrapers, roads tiles, glass, furniture and electrical goods.