Reasons for the 'Boom'

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  • Reasons for the 'Boom'
    • Mass Production
      • assembly lines used in factories to produce goods quickly & cheaply
      • price of product fell & more people could afford to buy the product
    • Tariffs
      • 1922= government put taxes on imports from foreign countries- makes them more expensive
      • Americans bought home- produced goods; helped industry to thrive & created more American jobs
    • Confidence and a 'State of Mind'
      • Americans were optimistic & bought new products
      • people were confident that economy would thrive so bought shares in businesses, so businesses had more money to invest in products
    • Republican Policies/ 'Laissez Faire'
      • Republican Party in control throughout 1920-1932 & it's policies helped the boom to continue
      • government encouraged people to buy and spend more through low taxation
      • lower taxes= people have more money left to spend- helped industrial growth; rich businessmen benefited most- business could keep its profits
      • LAISSEZ FAIRE: government should do as little as possible to interfere in people's lives; businessmen should be free to make profits
    • A New Age of Mass Advertising & Targeting Consumers Began
      • radio, newspapers, magazines & billboards helped promote new consumer goods & showed how desirable they were- propaganda
    • Post War Boom
      • banks had lots of money to lend to people & businesses because USA gave loans to GB during WW1, which they began to repay in 1920s
    • New Inventions of 'Luxury Consumer Goods' were Invented, Offering Labour Saving Appliances, which Improved Peoples' Quality of Life
      • e.g. radio, Ford Model T, electric cooker, freezer, fridge, gramophone, telephone, electricity, typewriter, hoover
      • gave leisure time= people had more time for themselves as these appliances got most work done for them- industries, like cinema, opened because people had nothing else to do


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