Causes of the boom
- Created by: paddlergirl1306
- Created on: 11-05-14 14:42
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- Causes of the boom
- Taxes
- Andrew Mellon was secretary to the treausurary
- He believed that government should not take part in economic life
- He gave big businesses low taxes
- Through out the 1920s Mellon cut taxes
- Andrew Mellon was secretary to the treausurary
- Tarrifs
- As well as low taxes, American government helped American industry by protecting it from import
- In 1922 the Kordeny-Mccumber Tariff Act put high tariffs or duties in foreign goods
- So Americans could buy them cheaper and more easily
- Confidence
- A major reason for the success of industry in the 1920s was the confidence of the American people
- Not only did people have confidence in factories but to buy by higher prices
- Mass production
- Electricity was more readily available so more factories used it
- Assembly lines produced goods at speed and in huge quantities
- Henry ford - first car assembly line
- Plentiful finance
- During ww1 the USA gave huge loans to the allis
- In the 1920s these loans were being paid with interest
- Therefore banks had lots of money to lend to factories
- During ww1 the USA gave huge loans to the allis
- Advertising
- Mass advertising was used for the first time
- Newspapers, magazines, billboards and the radio
- "Keep up with your neighbour or shame on you"
- Hire purchace
- 1920s saw the beginning of the hire purchase method of payment
- You would pay in instalments, if you didn't keep up with payments it was taken away from you
- Taxes
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