rise and fall of the american economy

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  • Rise and Fall of the American economy
    • Advertising & its impact on the consumer society
      • Firms invested in advertising campaigns to increase sales & profits
      • Greater access to the media through newspapers, magazines, the radio & the cinema
      • Development of sophisticated advertising techniques - catchphrases, colourful adverts, targeting audience
      • Growing popularity of catalogues led to growth in 'mail order' sales
      • Availabiity of credit meant that people could 'buy now, pay later' using hire purchases
    • Henry Ford & the importance of the car industry
      • He created the se of the electric conveyor belt & Assembly line
      • Ford's Model T was reduced from 13 hours to 1 hour 33 min to make
      • Wages $5 a day by 1914
      • Factory in Detroit - 24 hours a day, 3x8 hours shift, employing 80,000 people
      • First mass produced car using standardised parts & one colour - Black
      • 1925 - Half the worlds cars were Model T's
      • Led to the building of  - gas stations, motels, and restaurants - encourages development of suburbs
      • Famers felt less isolated & more mobile
    • Why the USA went into depression
      • US stock market collaped - shares were worth only a fraction of what they had been
      • Many shareholder lost everything. Increase in suicides
      • Loss in confidence in the financial sector. Banks went bust
      • Less consumer spending
      • Unemployment rose sharply- firms began to lay of workers
    • Did all people benefit from the 'Boom'?
      • Farmers
        • Decline in European markets after 1918 - fall in food prices
        • Forced to brrow money & struggled to keep up with their morgage payments
        • Those who lost their farms = Hobos (unemployed/ seeking a job)
        • Farm income 1919- $32 billion - 1928- $13 billion
      • Black Americans
        • Segregation( group seperate from the rest of the society )
        • Labourers/ sharecroppers(crop as rent) - lived in slum conditions
        • Northen Cities: lived in Ghettos & 'The last to be Hired, the first to be Fired'
        • 750,000 lost their jobs during the 1920s
      • Immigrants
        • Viewed as a source of cheap labour
        • Low wages
        • Prejudice & discrimination
        • Unemployment remained high throughout the 1920s
      • Trade Unions
        • Large number of strikes in the early 1920s, & the Red Scare damaged union membership
        • Employers(Henry Ford) were anti-union & refused to employ union members

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