The American People & The Boom

Question 1

What was The Boom?

Answer 1

an increased consumer demand for American goods and rapid industrial growth after First World War

Question 2

What is the cycle of prosperity?

Answer 2

mass production led to
jobs led to
consumer spending led to
stock market prosperity

Question 3

What caused the Boom?

Answer 3

world war one & resources
republican policies
stock market
consumer industries & advertising
credit & hire purchase
mass production

Question 4

How was World War One and resources important?

Answer 4

• essential supply of natural resources (timer, coal, iron, minerals, oil, land)
• took advantage of industrial strength
• exploited raw materials to produce chemicals, gas & machinery
• strong position after war meant plenty of money to invest

Question 5

How were republican policies important?

Answer 5

• in control throughout 1920-1932
• laissez faire
• tarifs
• taxes

Question 6

What was laissez faire?

Answer 6

stopped the government from intervening with peoples lives, gave the economy freedom to develop itself

Question 7

What were tarifs?

Answer 7

put taxes on foreign good which persuaded people to buy American goods

Question 8

What were taxes?

Answer 8

they were reduced so business people could invest in factories and more money to spend

Question 9

What was the stock market?

Answer 9

• where firms sold shares on the Stock Exchange
• raised money for expansion
• prosperity continued to grow
• prices increased = more money for companies

Question 10

What were consumer industries and advertising?

Answer 10

• mass produced products sold on a vast and cheaper scale
• industries took advantage of scheme and used marketing techniques
• mass nationwide advertising used for the first time to support war effort
• learned skills from wartime propaganda to set up agencies

Question 11

What were the marketing techniques?

Answer 11

radio
newspapers
cinemas
propaganda
travelling salesmen

Question 12

What was credit and hire purchase?

Answer 12

• could buy something by paying on a monthly basis
• money borrowed easily
• majority could afford expensive goods
• massive consumer spending

Question 13

What were the schemes for credit and hire purchase?

Answer 13

• buy now, pay later

- 8/10 radios and 6/10 cars bought on credit

Question 14

How was mass production important?

Answer 14

• Henry Ford developed the production line
• 1 car made every 10 seconds
• 1 car to 5 people

Question 15

What was the production line?

Answer 15

• same amount of goods on a large scale and quicker

- prices of goods fell, employing more workers

Question 16

How many cars were made by 1929?

Answer 16

4.8 million