Economic boom - America in the 1920s OCR powerpoint

How far did the US economy boom in the 1920s? Causes, prosperous industries and failing industries, agriculture. For the American Depth Study 1919-41

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1920s US Economic Boom
American Depth Study 1919-41…read more

Slide 2

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Reasons for the Boom
After WWI, America adopted a policy of
isolationism (keeping out of other
countries' affairs).
This led to President Harding
introducing import tariffs on foreign
goods in 1921, and later raise them.
This protected American industry as it
meant that American goods were now
cheaper than European imports.…read more

Slide 3

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Reasons for the Boom
There was low unemployment, high
interest rates and low inflation.
There was money to build skyscrapers
and new roads were built in the cities.
There was a huge consumer boom.
Ordinary people could now afford new
technologies such as vacuum cleaners
and telephones.…read more

Slide 4

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Reasons for the Boom
Advertising increased spending and became a new
industry as it expanded into radio and TV
Hire purchase (buy now, pay later) encouraged
ordinary people to buy luxury goods e.g. cars.
The Republican government reduced income tax,
so people had more money to spend. They also
encouraged banks to lend money.
The Stock Market also boomed. Millions of
Americans bought shares as they were investing
in a boom in production. This only became a
problem later on when prices shot up.…read more

Slide 5

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Prosperous Industries
The motor industry was the most successful.
1 in 12 people had jobs to do with the motor
Other industries also boomed as a result of
car manufacture e.g. steel, oil, rubber.
Cars e.g. the Model T Ford (less than $300)
were much cheaper so that average families
could afford them.…read more

Slide 6

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Prosperous Industries
Henry Ford developed the assembly line
system.This divided tasks between
workers alongside a conveyer belt.
The company could reduce their prices
dramatically because of the extra
Production rose from 1.9m in 1920 to
4.5m in 1929. By 1929 there was one
car for every five people in America.…read more

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