Why did America boom in the 1920's?
- Created by: Rachel Smith
- Created on: 22-03-13 13:44
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- Why did America Boom in the 1920's?
- Mass Production
- In the 1920's, mass production was introduced. This meant that conventially expensive products such as cars and fridges were cheaper. More poeple could afford them so more of them were sold.
- The amount of jobs available were also increased. with more products to make, more people were needed.
- It was now easier to be employed because the jobs at these mass production factories didn't demand a high skill level- jobs were opened up for more people.
- Henry Ford developed the Ford car. He introduced the idea of an assembly line that made the process easier and quicker. Due to this, more people were able to afford cars.
- World War One
- The War seemed to have helped the American economy.
- During the war, the USA had supplied countires that couldn't support themselves with things they needed.
- Whilst the war was going on and all European countries were concentrating on protecting themselves, America was busy trading with the countries involved.
- When the war had ended, countries refocused on trading with others again. However, they found that America had already snapped up their markets.
- The War seemed to have helped the American economy.
- Forrdney Mccumber tarriff
- In 1922, President Harding introduced a trading tarriff. The tarriff was out on all foreign imports.
- It ensured that American people would buy Amerian goods.
- It was an easy way to protect the American economy.
- Credit facilties
- Credit facilities increased the number of products brought.
- People could buy products with money they didn't actually have and pay for it in instalments.
- This created a 'knock-on' affect. With more people able to buy what they wanted, the demand for products increased. The economy benefitted and more jobs were created.
- Government policies
- The government allowed lower taxes on businesses.
- Laissez-faire
- This meant that businesses could do what they wanted in order to develop themselves.
- The Cycle of Prosperity
- More sales
- More spending
- More workers and higher wages
- Increased production
- More workers and higher wages
- Increased production
- More spending
- More sales
- Confidence
- After the war, America had confidence. They had one the war against the Germans and their industries and businesses were booming because of it.
- It made some so confident, that many brough shares in companies hoping for a bit of profit.
- Mass Production
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