Topic 1 (1920-29)Why Did The USA experience An Economic Boom In The 1920s?

Question 1

What aided the development of the advertising and marketing industries?

Answer 1

Technological advances of radio and cinema.

Question 2

What was the first major commercial radio station?

Answer 2

KDKA in Pittsburgh, Pennsylvania.

Question 3

How many commercial radio stations were there in 1929?

Answer 3

619 commercial radio stations.

Question 4

What percentage of households possessed a radio by the mid-1930s?

Answer 4

75% of households.

Question 5

What was a common feature in every town by 1929?

Answer 5

A picture theatre showing Hollywood films.

Question 6

What contributed to the growth of car ownership?

Answer 6

New roads and advertisements on billboards.

Question 7

Which seaside resort became a destination for New Yorkers?

Answer 7

Atlantic City, New Jersey.

Question 8

What made National Parks more accessible?

Answer 8

The development of new roads.

Question 9

What act made the government responsible for building roads?

Answer 9

The 1921 Federal Highways Act.

Question 10

How much did the length of surfaced roads increase from 1920 to 1929?

Answer 10

From 350,000 miles to 662,000 miles.

Question 11

What industry saw a boost due to the increase in road construction?

Answer 11

The construction industry.

Question 12

What are some of the USA’s natural resources?

Answer 12

Coalfields in West Virginia and Kentucky, reserves of oil in Texas, Oklahoma, and California, and metals such as iron, copper, and lead are important for industrial production.

Question 13

What does ‘spirit of enterprise’ refer to?

Answer 13

‘Spirit of enterprise’ refers to rugged individualism and the belief in the American Dream, where hard work and talent could lead to wealth.

Question 14

Who were notable figures representing the American Dream?

Answer 14

Steel magnate Andrew Carnegie and Henry Ford exemplified the American Dream.

Question 15

What significant development occurred in 1920s USA?

Answer 15

The development of the motor car was matched by a nationwide road system.

Question 16

What role did European immigrants play in the USA’s economy?

Answer 16

Millions of European immigrants provided cheaper labor and hard work.

Question 17

What innovation did Henry Ford introduce?

Answer 17

Henry Ford introduced the production line and division of labor, which increased productivity.

Question 18

How did production time change for cars by 1913?

Answer 18

In 1913, it took 12.5 hours to produce one car, which was reduced to 2 hours and 40 minutes.

Question 19

What was the most produced car during this time?

Answer 19

The most produced car was the Ford Model T, which was only available in black from 1914 to 1926.

Question 20

Who conducted time and motion studies of production?

Answer 20

Frederick Taylor conducted time and motion studies of production.

Question 21

What was the role of industrial corporations?

Answer 21

Industrial corporations bought up natural resources and controlled the entire manufacturing process and sales.

Question 22

Who controlled multiple companies by 1929?

Answer 22

Samuel Insull controlled 111 separate but linked companies by 1929, with a combined value of $3 billion.

Question 23

What percentage of the USA’s electricity supply industry was controlled by 16 companies in 1929?

Answer 23

By 1929, 16 companies controlled 90% of the USA’s electricity supply industry.

Question 24

What was the impact of electrification?

Answer 24

Electrification led to the development of radios, vacuum cleaners, and toasters.

Question 25

How many electrical appliances were there in 1912 and 1929?

Answer 25

In 1912, there were 2.4 million electrical appliances, which increased to 160 million by 1929, though they were mostly centered in towns and cities.

Question 26

What was the main driving force behind the economic boom of the 1920s?

Answer 26

The motor car.

Question 27

How many car registrations were there in 1920?

Answer 27

Eight million.

Question 28

How many car registrations were there in 1929?

Answer 28

Nearly 28 million.

Question 29

How many cars did Ford produce in 1920?

Answer 29

1.25 million cars.

Question 30

How often did Ford produce a car in 1920?

Answer 30

One every sixty seconds.

Question 31

Which companies were involved in car manufacture?

Answer 31

Ford, General Motors, and Chrysler.

Question 32

What city became the world's car manufacturing center?

Answer 32

Detroit.

Question 33

How many workers were directly employed by the car industry?

Answer 33

375,000 workers.

Question 34

How many workers did Ford's River Rouge plant employ?

Answer 34

75,000 workers.

Question 35

What percentage of the American manufacturing workforce was employed by the car industry by 1929?

Answer 35

Seven percent.

Question 36

What percentage of all manufacturing wages did the car industry pay?

Answer 36

Nine percent.

Question 37

What industries were stimulated by car manufacturing?

Answer 37

Steel, rubber, and glass industries were essential for car manufacture.

Question 38

What was the effect of increased demand for cars?

Answer 38

It led to increased demand for materials like steel, rubber, and glass.

Question 39

How did car manufacturing influence technological advances?

Answer 39

It stimulated advances in engineering and electrical industries.

Question 40

What was the impact of the rise in car ownership?

Answer 40

It caused a rapid rise in the demand for petrol.

Question 41

What industries emerged to serve motorists?

Answer 41

Petrol stations, motels, and garages emerged.

Question 42

How did the demand for cars affect other industries?

Answer 42

The demand for cars stimulated the growth of other industries, including essential materials for manufacture and the oil industry.

Question 43

What was the impact of increased car ownership?

Answer 43

Increased car ownership led to a rapid rise in the demand for petrol, which stimulated the oil industry and the emergence of petrol stations, motels, and garages.

Question 44

What economic conditions characterized the 1920s in the USA?

Answer 44

The 1920s was characterized by low unemployment, low inflation, and a 13 percent rise in real wages between 1923 and 1929.

Question 45

What was the purpose of hire-purchase schemes?

Answer 45

Hire-purchase schemes allowed consumers to buy goods by initially paying a small portion of the price and then paying off the rest in monthly instalments.

Question 46

What percentage of cars were bought through hire-purchase schemes?

Answer 46

Over 75 percent of cars were bought through hire-purchase schemes.

Question 47

How did consumer borrowing change from 1920 to 1929?

Answer 47

Consumer borrowing rose from just over $2 billion in 1920 to over $8 billion by 1929.

Question 48

What belief stimulated consumer spending during the 1920s?

Answer 48

The belief that the economic boom of the 1920s would be never-ending stimulated consumer spending.

Question 49

What historical downturns did the USA experience before the 1920s?

Answer 49

The USA suffered major downturns in economic activity in 1857, 1873, and 1893.

Question 50

Who was Stuart Chase?

Answer 50

Stuart Chase was a co-founder of Consumers Research Inc., the first product-testing organization in the USA.

Question 51

What did Stuart Chase identify as a major force in business prosperity?

Answer 51

Stuart Chase identified the motor car as the largest single force in business prosperity.

Question 52

What was the dominant political party in the 1920s in the US?

Answer 52

The Republican Party dominated the political landscape, winning presidential elections in 1920, 1924, and 1928.

Question 53

What was Calvin Coolidge's famous claim regarding business?

Answer 53

Calvin Coolidge claimed that 'the business of America is business.'

Question 54

What economic policies did Republican governments implement to support big business?

Answer 54

They implemented laissez-faire economic policies aimed at lowering taxes and reducing government regulation.

Question 55

What was the Fordney-McCumber Tariff?

Answer 55

The Fordney-McCumber Tariff, passed in 1922, placed taxes on foreign goods to protect American industries.

Question 56

What impact did the Fordney-McCumber Tariff have on American industries?

Answer 56

It increased profits for American chemical, dye, steel, and aluminum industries but did not address agricultural overproduction.

Question 57

Who was Andrew Mellon and what was his tax policy?

Answer 57

Andrew Mellon was the Secretary to the Treasury from 1921 to 1932, and he adopted a low-tax policy, lowering taxes on the rich from 50% to 20%.

Question 58

What was the outcome of Mellon's tax reductions?

Answer 58

Mellon handed out $3.5 billion in tax reductions and helped balance the federal budget during his time in office.

Question 59

How did the Federal Trade Commission affect business regulations?

Answer 59

The Federal Trade Commission and Republican-run state governments reduced regulations, often ignoring price-fixing and labor issues.

Question 60

What was the American Plan?

Answer 60

The American Plan was a slogan for reducing union power, leading to no-strike and no-union agreements forced on workers.

Question 61

What happened to union membership by 1929?

Answer 61

Union membership declined by nearly a million due to anti-union policies and actions by the Republican government.

Question 62

What significant actions did the US Supreme Court take regarding unions between 1921 and 1925?

Answer 62

The Supreme Court made four significant anti-union decisions that restricted union power.