Why was there an Economic Boom
- 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
- Had a great store of natural resources, e.g, wood, oil, coal, minerals, land
- CREDIT
- Hire Purchase (buying in instalments)
- Introduced to make cars affordable to average earners
- Encouraged more spending on luxury goods
- Introduced to make cars affordable to average earners
- Hire Purchase (buying in instalments)
- CONFIDENCE
- Stock market boomed, people investing in production and consumption
- MASS MARKETING
- Advertising = encouraged more spending
- Radio/film commercials
- Advertising = encouraged more spending
- 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
- Ford's factory used an assembly line system. Divided tsaks among groups of workers
- 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
- On income and company profits
- 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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