Why was there an Economic Boom

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  • Created by: Jasmin
  • Created on: 04-04-13 19:02
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  • Why was there an Economic Boom?
    • Low inflation, low unemployment, low interest rates
    • TECHNOLOGICAL CHANGE
      • Production of new producer goods, e.g, refridgerators, vacuum cleaners, radios
      • Electricity cheaper, more efficient source of power for factories
      • Helped modernise existing industries and develop new ones
      • Plastics developed for first time
    • RESOURCES
      • Had a great store of natural resources, e.g, wood, oil, coal, minerals, land
        • Helped America to become great industrial power
    • CREDIT
      • Hire Purchase (buying in instalments)
        • Introduced to make cars affordable to average earners
          • Encouraged more spending on luxury goods
    • CONFIDENCE
      • Stock market boomed, people investing in production and consumption
    • MASS MARKETING
      • Advertising = encouraged more spending
        • Radio/film commercials
    • IMPACT OF WW1
      • USA lent money to Allies, sold arms and munitions to Br and Fr
      • One way trade = boost
      • Americans able to take control over Europe's trade around the world
        • USA lent money to Allies, sold arms and munitions to Br and Fr
      • Germany was the worlds most successful chemical industries - by end of war America had produced more so was leading
    • MASS PRODUCTION
      • Ford's factory used an assembly line system. Divided tsaks among groups of workers
        • Production more efficient and cheaper
      • Production of cars was dominated by Ford, Crysler, General Motors
    • POLICIES OF THE REPUBLICAN PRESIDENTS
      • All US presidents Republican
      • Laissez - Faire
        • Republicans believed gov should not interfere in everyday lives of people
      • Tariffs
        • On imported goods. Made imports more expensive compared to American made goods so helped American producers
      • Lower Tax
        • On income and company profits
          • Wealthy have more money to invest in Americna industry and buildings, people more money to spend on American goods
  • Germany was the worlds most successful chemical industries - by end of war America had produced more so was leading
  • TECHNOLOGICAL CHANGE
    • Production of new producer goods, e.g, refridgerators, vacuum cleaners, radios
    • Electricity cheaper, more efficient source of power for factories
    • Helped modernise existing industries and develop new ones
    • Plastics developed for first time

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