the US economy, 1919-29

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  • Created on: 31-03-16 15:01
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  • the US economy, 1919-29
      • in the early years of WW1, American businesses profited from Europe.
        • -American industries supplied arms and equipment.     -American firms were able to take over much of the export business of the European powers while they were caught up in the fighting.
        • this made the US confident and wealthy. It also made them isolationalist- they did not want to be dragged into Europe's wars.
      • President Harding's (republican) key policies were isolationism, tariffs and low taxes to help businesses grow, and to give workers money to spend. Then Coolidge came to power and continued these policies
      • profits from American companies rose enormously
        • mass production allowed goods to made quickly and cheaply
          • consumer goods such as vacuum cleaners, fridges etc were bought which boosted the electrical industry.
          • the motor industry was growing significantly. By 1930 there were 30 million in the US
            • helped to create more jobs
              • consumer goods such as vacuum cleaners, fridges etc were bought which boosted the electrical industry.
          • modern techniques such as the assembly line, simplified jobs was another factor in the boom
        • Advertising, credit and hire purchase made it easy for American people to spend and feed into the growing economy
      • workers in older industries did not benefit from the boom
      • coal industry declined because gas and electricity were more popular
        • in North Carolina there was a strike because they were only getting payed $18 for a 70-hour week (the minimum wage was $48 per week)
      • the cotton industry suffered from competition from new man-made fibers. This again, resulted in job losses and wage cuts.
      • problems in agriculture;    -after WW1 Europe imported far less food from the US  -farmers weren't as efficient as Canadian wheat farmers        -combine harvesters (new mechanical developments) were making more resources that were in demand.
        • farmers reduced their prices so people would by their unwanted produce that was vast due to making too much. Farmers were ruined and were forced to move to cities; it as hard for them to get work because they had different skills to what was needed in the city.


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