America: Economic Boom

Question 1

How did the First World War help the economic boom?

Answer 1

USA stayed out of the war at first allowing the USA to prosper financially
Loaned allies food, weapons and equipment
More demand of supplies created jobs for many

Question 2

How did the role of the government help the economic boom?

Answer 2

Republicans government - followed Laissez faire meaning businesses were left alone to get on with creating wealth
High taxes were put on foreign goods - encouraged USA citizens to buy American goods
Cut taxes - more money to spend on goods

Question 3

What did the fordney-McCumber Tariff do?

Answer 3

Put high taxes on imports making foreign goods more expensive

Question 4

What did the consumer society do to help the economic boom?

Answer 4

People could buy ultra-modern electric-powered ‘gadgets’
Huge demand for goods created jobs in the factories that made them

Question 5

What did growing industries and mass production to help the economic boom?

Answer 5

More cars needed, more jobs created
As companies became quicker at making goods (assembly lines) good became cheaper

Question 6

How did new ways to buy and sell help improve the economy?

Answer 6

Colourful billboards, newspapers and magazines encouraged people to buy goods
Catalogues made buying easier
Buy now pay layer schemes meant buyers could pay for goods in small amounts over a fixed period of time