How the usa achieved prosperity

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  • Created by: aggy98
  • Created on: 16-05-14 13:53
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  • How the usa achieved prosperity
    • Isolationism
      • The us only joined ww1 in 1917, when germany kept attacking their submarines- thye only lost 100,00 men.
        • This led to most americans wanting an end to entanglements in european affairs.
          • This meant that when the treaty of versailles was drawn up, they would not sign it and would not join the league of nation.
            • Many german voters in us by this point- dont want to lose support.
            • Wanted to look after their own citizens after losing 100,000
            • Because they did not want to be dragged into the economic problems in europe.
      • Fordney mccumber tariff policy-- meant americian goods were cheaper but other countries did the same.
    • Mass production
      • by 1914 Henry ford was using a conveyor belt tobuild his model t-ford. This meant  one care could be produced in 93 minutes.
      • in 1920's over 1 million model t fors were produced each year. Prices fell and wages rised. 4 million people depended on the car industry, as they  had many less skilled workers.
        • Advertising
          • Loads of new advertising techniques, including billboards because of the car development. Others were radios, newspapers and catalogues.
            • Of course, many new jobs were created as people needed to create thee posters and billboards. QWages increased as products became more popular.
      • "You can have any colour as long as it's black"
      • This lead to further technological advances- which meant mass production was used more, meaning there was more jobs available and higher wags, so more spending, meaning more things were bough and demand increased, meaning more jobs. This is an example of the cycle of prosperity.
    • Advertising
      • Loads of new advertising techniques, including billboards because of the car development. Others were radios, newspapers and catalogues.
        • Of course, many new jobs were created as people needed to create thee posters and billboards. QWages increased as products became more popular.
    • Technological advances- many new inventions meant more jobs, more spending, more advertising.
      • This was because of the first world war, where many more resources were needed and the weapons industry boomed, along with chemical industry. Many more jobs had been created because of it, and many countries owed the uSA thousands of dollars.
    • Credit- many banks loan out loads of money without confirmation of pay back due to high confidence levels- the more confidence they had and the more confidence the banks had meant more credit and more spending.
      • goods could now be bought on hire purchase as well, meaning people could pay for a product in installments. This led to a boom in sales, thus increased demand in factories which produced more jos and higher wages- and as long as wages went up people could pay back what they owed.
    • The stock market
      • Companies could sell sahres on the stock exchange to raise money for investment. They were eagely bough by investors who hoped to sell them for a higher price. in the 1920's therefore, prices went up by an avergae of 300%
      • Many ordianry people began to invest, as it seemed like easy money.This meant demand continued to go up and prices soared. People were so convinced that they would continue to do so, that they began buying on the margin- as in borrowing money to purchase shares. Many banks loaned more than they had in their depoists.
        • This meant thatif share prices suddenyl dropped, the banks wouldnt be able to pay the money they loaned back as others couldnt pay the banks.
    • Republician government policies
      • Laissez faire-letting businesses get on with thier job without interference.
      • Rugged individualism- individuals are responsible for their own lives.
    • Developments in the entertainment industry
      • Rudolf valentino, Buster Keaton and Charlie Chaplin became very popular and famous. Clara bow was a very famous and highly attractive actress.
      • Big cinema companies developed, such as Warner Brothers and MGM. large publicity departments- meant more jobs.
      • Jazz became very popular, and many clubs developed- the most famous was the cotton club. Black musicians became famous despite racism, such as Louis Armstroong and Duke ellington.
      • by 1929, over 10,000,000 homes had a radio, meaning, that sports like boxing, baseball and americian football became much more populaPeople also had more time and money to go and watch sports and with the increased ownership of cars- more people watched matches. This led to heroes like boxer Jack dempsey developing.
      • Many new carzes- many new dances like the charleston and the tango, which older people didnt approve of. Flappers developed- they cut their hair short, smoked, wore rouge and short skirts and stayed outlate. This conduct shocked the parents of many young girls.

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