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USA: Roaring 20s
America's Economic Policy:


The US followed a policy of Isolationism.

A policy of remaining apart from the affairs or interests of other groups, particularly the
political affairs of other countries

Why doesn't America join the League of Nations?

Isolationism America is `New World' and hate communism…

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Woodrow Wilson's Economic Policy:

He was President between 1913 and 1921

In the Treaty of Versailles he proposed:

Free Navigation of all seas

An end to economic barriers between all countries

Wilson vetoed the Emergency Tariff Bill, just before handing over the presidency to Harding.

Wilson was strongly free trade…

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Farm Bloc: Overproduction was causing a depression in farming. Farmers hoped it would
keep prices up.

The FordneyMcCumber law:

In 1922 the FordneyMcCumber law was passed. This put Tariffs on all foreignmade goods
entering the United States.

It was named after Joseph Fordney and Porter McCumber the legislators who designed…

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Trade worldwide trade was damaged and was eventually one of the causes of the Great

Consequences of Isolationism:

America did not join the League of Nations
America placed limits on Immigration
America followed a policy of protectionism.

AntiImmigration in America:

American Immigration Prewar:

America was a country founded on…

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Prostitute Traffickers

This law began a national debate and triggered the introduction of many more laws after

Why did AntiImmigration come about?

Prejudice: after 1880, many new immigrants were poor Catholics and Jews from Eastern
Europe. This worried the WASPs as they claimed the US was becoming a `race…

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Emergency Quota Act 1921:
Warren Harding signed the bill, only 3
57,000 immigrants a
year. Only 3% of people in an ethnic group were allowed to immigrate. This bill was meant to
be temporary.

National Origins Act: Calvin Coolidge signed the bill, excluded all who couldn't become a
citizen due…

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Henry Ford famously said `A customer can have any colour as long as it's black'

By producing large numbers of cars on an assembly line Ford needed fewer skilled workers,
which cut the cost of paying wages.


The success of Ford helped to crossstimulate other industries.

Other industries such…

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People were helped by low interest rates and could borrow money off the banks.

This helped increase the boom in sales, again adding to the cycle of prosperity.

The Stock Market:

More people were investing in the Stock Market.

People may then buy shares in the company hoping that the…


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