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 :)

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  • 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
  • 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
    • 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

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