America Theme 4 Flashcards
(65 cards)
post war depression - farming
During the war, farmers were urged to produce more wheat and were given subsidies to do so. Some took out loans to buy farmland and machinery
Mechanisation meant fewer workers were needed, which led to unemployment
After the war, farmers were producing too much, known as overproductio
. Some farmers had to sack workers, others defaulted on the loans they had taken out to invest in new machinery and went bankrup
post war depression industry
The Red Summer of 1919 and 1920 saw many strikes.
Most failed to get better working conditions for the strikers and some caused businesses to fail, increasing unemployment.
other industries (older ones) were also in decline.
. For example, the coal industry lost out to other fuels such as waterpower and electricity. In 1900 coal had produced almost 90% of energy in the USA, but by 1930 this had dropped to 60%.
post WW1 depression - government reaction
The Republican government had a laissez-faire approach to the government and believed the economy would right itself, so did not try to stop the depressio
However, they did introduce isolationist tariffs on foreign imports which led other countries to introduce similar restrictive tariffs on US goods and so US exports fell.
how did mass production lead to the post depression boom
division of labour -Henry Ford’s car factories were the most effective example of this
Mass-produced goods were produced more quickly and cheaply, so they could be sold at a lower price. This made them more affordable and so manufacturers sold more of them.
Ford factories produced a car every 10 seconds by 1929.
stats on carsv during boom following depression
By 1929 there were 27 million cars, one car for every five americans.
Ford factories produced a car every 10 seconds by 1929.
Car production stimulated other industries – steel, rubber, oil, road building and service stations
increasing electricity stats
In 1917, there were 7,889,000 homes and businesses wired for electricity; in 1930, there were 24,555,732.
the ford model T
In 1914, a Ford Model T cost $825. Henry Ford paid his workers $5 a day; most industrial workers were getting half that.
utilised specialisation and division of labour
by october 1924, a ford cost $260.
When everyone who could afford a Model T (or a fridge or a radio) had one, demand dropped. In 1927, 15 million Fords had been sold. Demand them dropped, however, this was then replaced by a demand for spare parts.
hire and purchase loans
Before the war, borrowing was seen as a last resort and only banks and loan companies lent money
In the 1920s, companies pushed hire purchase as the practical way to buy
Between 1920 and 1929, consumer debt rose from $3.3 billion to $7.6 billion.
the stock market post war 1
In the 1920s, the price of shares in the new industries rose rapidly.
As share prices rose rapidly, the media began to point out that it was possible to make money even if you bought just a few shares and sold them a short time later
Shares went into their own boom cycle, called a bull market as ordinary people begna to buy stocks and shares.
the great depression
US trade fell from $10billion in 1929 to $3billion in 1932
By mid 1932 industrial production had dropped to half the 1929 level.
In early 1929, 1.5 million were unemployed – 3% of the workforce.
By December, 1932, unemployment was over 12 million- 25% of the workforce.
Those who lost their jobs could not keep up payments on mortgages and lost their homes too. As people stopped buying goods, prices dropped and more businesses failed
The outcome was homelessness and poverty for many people
recovery after the great depression
Roosevelt promised ‘bold persistent experimentation’ to get America out of the Depression, the new deal.
The New Deal programs focused on the “3 R’s”: relief for the unemployed and for the poor, recovery of the economy back to normal levels, and reform of the financial system to prevent a repeat depression
roosevelt first hundred days.
His first action as president was the Emergency Banking Act to close all the banks, then only reopen the ‘healthy’ ones
. The Glass-Steagall Act separated commercial banking from investment banking and prohibited bankers from using depositors’ money to pursue high-risk investment
. Congress set up the Federal Deposit Insurance Corporation FDIC an independent agency to maintain stability and public confidence in the financial system
the dust bowl
Severe drought hit the Midwest and southern Great Plains in 1930. Massive dust storms began in 1931. A series of drought years followed.
By 1934, an estimated 35 million acres of formerly cultivated land had been rendered useless for farming
Roughly 2.5 million people left the Dust Bowl states—Texas, New Mexico, Colorado, Nebraska, Kansas and Oklahoma—during the 1930s.
roosevelt response to dust bowl struggles.
As part of the Second New Deal Roosevelt created the Farm Security Administration (FSA) in 1937 to aid poor farmers, sharecroppers, tenant fanners and migrant workers.
The Second Agricultural Adjustment Act, like the first, provided subsidies for farmers to produce less.
living standards in the 1920’s
For most Americans, the standard of living increased during the 1920s
Many employers introduced life insurance and pension plans.
Many Americans could afford to buy new radios, cars and go to the cinema or watch sports
great depression effect on living standards
By 1932, over 12 million people were unemployed. Millions of people roamed the countryside, stealing rides on freight trains and looking for jobs.
Those who were lucky enough to be employed saw their average earnings fall by a third.
home ownership 1920-40
In the 1920 census, about 6,700,000 people owned their own homes, while about 12,900,000 rented.
The 1940 census listed about 19,600,000 renting homes and 15,200,000 home owners, a very steep rise in home ownership
1940 census stats on general household things
Running water, bathrooms and toilets:, 69% had running water in the house and 56% had a bath or shower
Cooking: 48% of homes cooked by gas and only 5% by electricity
Heating: 42% of homes had central heating; for those homes without central heating, the most usual method of heating was a stove, and 11% of homes had no heating at all.
.
Radios: 82% of people said they owned a radio.
spending money 1920-40
As the 1920s went on, more and more people shopped in chain stores rather than small, local stores.
By 1929, retail chains were selling 21% of all goods sold in the USA
Food: In 1930 people spent 23% of their income on food. They spent 13% of their food-spending money on eating out. By 1933, during the Great Depression, they were spending 25% of their income on food, but only 12% of their food-spending money on eating out
The household appliance market boomed in the 1920s and 1930s. Most of these appliances ran on electricity. It is no accident that Roosevelt set up the Rural Electrification
health and education as a measure of SOL 20-40
Health: The nation’s health was improving. death rates of diseases were decreasing. . The government invested more in providing free healthcare for those who could not afford it - making them more likely to go to the doctor.
In 1917, it spent $3,100,000 on healthcare. By 1930, spending had reached $11 million and, by 1940, it was $32,700,000.
education - In 1917, just 27% of all children aged 14-17 were going to school. By 1929, it was 51% and, by 1940, it was 73%.
impact of bust on living standards (depression)
· 1929 car sales fell dramatically, Ford fired 75% of his workforce
· 1932 all of U.S, Steel’s workforce on part time contracts
· 1932 1-2 million people in Hoovervilles
· 1932-33 Chicago could not afford to pay its teachers
· 5x as many black Americans were unemployed compared to white Americans
how was america able to profit during the second world war
Orders for planes and aircraft engines from Britain and the Soviet Union came in thick and fast. America began to provide significant military supplies and assistance to the Allies in September 1940, even though America did not enter the war until December 1941
Much of this aid flowed to the UK and other nations already at war with Germany and Japan through Lend-Lease programme
stats on american military exports during the second world war
Between 1940 and 1945 American industry produced 15 million rifles, over 100,000 tanks, 300,000 aircraft and 93,000 ships.
By 1944, the USA was producing twice as much as Germany, Japan and Italy combined.
By 1944, unemployment was down to 670,000 – 1.2%
Producing 50% of world’s manufacturing with only 7% of world population
Number of taxpayers increased from 4 million in 1939 to 42 million in 1944
the state of the american economy immediately after world war 2
the economy continued to prosper after the war. America emerged as the world’s wealthiest nation after World War Two.
The main growth areas were advertising, aviation, cars, chemicals, construction, defence, food processing, pharmaceuticals, soft drinks and tobacco.
13 million new homes were built 1948 – 59. In 1955 7.9 million cars were manufactured – most cars were made in Detroit by the Big Three – General Motors, Ford and Chrysler.
what was the post WW2 boom fuelled by
A huge demand for the consumer goods people had done without during the war made the move from wartime industries to civilian ones easier. Production increased (from $213 billion-worth of goods in 1945 to $284 billion-worth in 1950), which helped keep unemployment low.
The business boom encouraged employers to expand their workforce and to raise wages
The government came down hard on strikes for higher wages as prices rose. When coal miners went on strike, President Truman took control of the mines. The rail workers went on strike to support the miners. Truman took over the railways
A post-war ‘baby boom’ meant a growing demand for child-centered goods. In 1947, nappy sales were $32 million; in 1957, they were $50 million. Toy manufacturers made $1.6 billion in 1959. By 1961, their profits had risen to $2 billion.