USA: Stock Market Boom + Mass Production
All these mindmaps are segmented into different topics
I printed mine on A3 paper as i found it v difficult to use online and A4 was wayyy too small making the bubbles unreadable
Beware of the typos I was too lazy to fix them whoops
Enjoy the revison :)
- Created by: tidgywidgy
- Created on: 06-04-18 12:03
View mindmap
- Stock Market Boom + Mass Production
- Mass Producing a Ford
- made one car, so the parts were a standard size and shape = saves money + time + labour as workers only had to learn how to deal with one set of parts
- introduced division of labour. Instead of one or two workers building a whole car, the work is split into a series of jobs with one worker doing the same job over + over again - splitting up the jobs made assembling faster
- 1914 - introduced a moving assembly line - each worker stayed in the same place + the job came to them - reducing time to make a car from 12 hours tl 1 hour + 33 minutes
- Reasons to Buy
- mass production made things cheaper
- wages were rising - average wage rose 8% in the 1920's
- many new goods ran on electricity + after war many houses = connected to national grid
- advertising encouraged people to buy
- hire purchase
- The Effects of Mass Production
- made goods cheaper as they could be produced faster + for less cost
- 1908 - car with standard parts + some labour specialisation = $950, by 1926 - improved version = $350
- 1 million cars in USA in 1915 but 28 million in 1939
- factories employed more people to make cars + parts
- 1912 - 7,000 Ford dealerships in USA
- Ford dealerships provided mechanics to look after + replace faulty parts
- as number of cars increased so did the number of garages providing petral + mechanics = more jobs
- by 1929 over 4 million workers depended on the car industry
- Industries that provided raw materials for part (glass, steel, rubber) grew
- by 1929 75 % of all leather, glass + rubber went to the car industry
- demand for petrol + oil grew
- growth in number of cars led to more surfaced roads (about 400,000 km were built in the 1920's
- road travel was easier + quicker, so people travelled more often, spreading their spending
- travelling salesmen became popular to see new consumer goods on the road
- Hire purchase
- for those who couldn't afford to buy the new luxury goods
- shops + businesses set up payment-in-instalments schemes
- customers could sign a hire-purchase agreement + put down deposits on consumer goods like radios or cars, then took the goods + paid off the rest of the cost in regular instalments
- before the war, these shops were seen as not respectable as it was a way for poor people to get their necessities
- after war, more people made purchases like this and many took mortgages on their homes - being in debt was no longer shameful
- The Boom Cycle
- more workers employed
- more wages spent
- more goods bought
- more goods made
- more profit
- higher demand
- Shares
- if a person needs money to set up a company or a company needs money to expand, the owner can raise that money by selling shares in the company
- when someone buys a share of a company they then own part of the company
- before 1920's only wealthy people or banks bought shares in companies they thought would be successful + get lots of dividend
- every year the company's profit is divided up among the shareholders = dividend = calculated on how many shares they have
- people who sell trade shares are called brokers
- the stock market is where you buy and sell shares
- shares have no set value - worth what someone is prepared to pay for them - all about the demand
- if trading was slow the prices of shares could stay the same for days
- but if there were lots of buying + selling prices could go up + down several times a day
- Problems for Older Industries
- eg coal mining, shipbuilding + railways could not benefit from new idea such as the assembly line
- during the war, coal + ship building industries were at full production
- after the war the use of coal reduced as more people used electricity - cheap, clan + convenient - for heart, light + cooking
- businesses switched to electric power asell
- railways lost custom as people bought cars and businesses used trucks on new surfaced roads to transport goods
- the war had increased the need for new ships, but demand had fallen now
- Problems for Farmers
- during war farmers bought more land (mortgages or borrowing) + equiptment to grow more food as tehy were growing food for both American + European market
- after war, European farm production took a couple years to recover, but then they needed much less food from the USA
- demand fell as in 1920 prohibition reduced demand for grapes + barley (used for wine+ beer)
- clothes were made from new synthetic fabrics e.g rayon so demand for cotton + wool fell
- Farmers costs were high and prices were falling
- Mechanisation = need for fewer workers but they were growing more crops than the country needed = prices fell = farmers went bankrupt
- Low Paid Workers
- e.g labourers (many black) + workers in worst-paid industries like mining as well as those who could find no work
- Workers in South = often paid less than those in North
- average wage of farmer in 1919 = $13.5 a week and by 1930 it dropped to $7.5
- meanwhile average wage of teacher rose from $15.5 a week in 1919 to $29.9 in 1930
- Mass Producing a Ford
- The Stock Market Boom
- In 1920's new companies made big profits (fridges + radios) and the prices of their shares went up as more and more
- people bought not for the dividened but to sell them again for profit
- from 1927 it seemed everyone was buying shares and no one could lose
- Stock Market Boom + Mass Production
- Mass Producing a Ford
- made one car, so the parts were a standard size and shape = saves money + time + labour as workers only had to learn how to deal with one set of parts
- introduced division of labour. Instead of one or two workers building a whole car, the work is split into a series of jobs with one worker doing the same job over + over again - splitting up the jobs made assembling faster
- 1914 - introduced a moving assembly line - each worker stayed in the same place + the job came to them - reducing time to make a car from 12 hours tl 1 hour + 33 minutes
- Reasons to Buy
- mass production made things cheaper
- wages were rising - average wage rose 8% in the 1920's
- many new goods ran on electricity + after war many houses = connected to national grid
- advertising encouraged people to buy
- hire purchase
- The Effects of Mass Production
- made goods cheaper as they could be produced faster + for less cost
- 1908 - car with standard parts + some labour specialisation = $950, by 1926 - improved version = $350
- 1 million cars in USA in 1915 but 28 million in 1939
- factories employed more people to make cars + parts
- 1912 - 7,000 Ford dealerships in USA
- Ford dealerships provided mechanics to look after + replace faulty parts
- as number of cars increased so did the number of garages providing petral + mechanics = more jobs
- by 1929 over 4 million workers depended on the car industry
- Industries that provided raw materials for part (glass, steel, rubber) grew
- by 1929 75 % of all leather, glass + rubber went to the car industry
- demand for petrol + oil grew
- growth in number of cars led to more surfaced roads (about 400,000 km were built in the 1920's
- road travel was easier + quicker, so people travelled more often, spreading their spending
- travelling salesmen became popular to see new consumer goods on the road
- Hire purchase
- for those who couldn't afford to buy the new luxury goods
- shops + businesses set up payment-in-instalments schemes
- customers could sign a hire-purchase agreement + put down deposits on consumer goods like radios or cars, then took the goods + paid off the rest of the cost in regular instalments
- before the war, these shops were seen as not respectable as it was a way for poor people to get their necessities
- after war, more people made purchases like this and many took mortgages on their homes - being in debt was no longer shameful
- The Boom Cycle
- more workers employed
- more wages spent
- more goods bought
- more goods made
- more profit
- higher demand
- Shares
- if a person needs money to set up a company or a company needs money to expand, the owner can raise that money by selling shares in the company
- when someone buys a share of a company they then own part of the company
- before 1920's only wealthy people or banks bought shares in companies they thought would be successful + get lots of dividend
- every year the company's profit is divided up among the shareholders = dividend = calculated on how many shares they have
- people who sell trade shares are called brokers
- the stock market is where you buy and sell shares
- shares have no set value - worth what someone is prepared to pay for them - all about the demand
- if trading was slow the prices of shares could stay the same for days
- but if there were lots of buying + selling prices could go up + down several times a day
- Problems for Older Industries
- eg coal mining, shipbuilding + railways could not benefit from new idea such as the assembly line
- during the war, coal + ship building industries were at full production
- after the war the use of coal reduced as more people used electricity - cheap, clan + convenient - for heart, light + cooking
- businesses switched to electric power asell
- railways lost custom as people bought cars and businesses used trucks on new surfaced roads to transport goods
- the war had increased the need for new ships, but demand had fallen now
- Problems for Farmers
- during war farmers bought more land (mortgages or borrowing) + equiptment to grow more food as tehy were growing food for both American + European market
- after war, European farm production took a couple years to recover, but then they needed much less food from the USA
- demand fell as in 1920 prohibition reduced demand for grapes + barley (used for wine+ beer)
- clothes were made from new synthetic fabrics e.g rayon so demand for cotton + wool fell
- Farmers costs were high and prices were falling
- Mechanisation = need for fewer workers but they were growing more crops than the country needed = prices fell = farmers went bankrupt
- Low Paid Workers
- e.g labourers (many black) + workers in worst-paid industries like mining as well as those who could find no work
- Workers in South = often paid less than those in North
- average wage of farmer in 1919 = $13.5 a week and by 1930 it dropped to $7.5
- meanwhile average wage of teacher rose from $15.5 a week in 1919 to $29.9 in 1930
- Mass Producing a Ford
- as people felt so confident they began to borrow money to buy shares so they would be able to sell them for more and repay the loan = Buying on a Margin
- banks began to use their money (which was really people's savings) to buy shares
- everyone seemed to forget that the price of stocks could go down as well as up, which they did in the Wall Street Crash in 1929
Comments
No comments have yet been made