Causes of the Boom- A Firm Foundation

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Natural resources were important, at this time there was lots of them available in various states: Oil- Texas, Coal- Kentucky, Iron- Chicago

Having a heavy abundance of raw materials meant they did not have to rely on imports from other countries- securing economic stability

America was virtually self-sufficient

Number of jobs available in industry increased providing more Americans with jobs

8 million people immigrated to America in search for a better job or life. Labour costs fell as foreigners provided cheap labour, thus low production costs

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The Boom allowed electricity in America to increase with the percentage of Americans with electricity going from 35% in 1920 to 69% in 1929

The availability of electricity meant people could now run labour saving devices e.g. fridges, electric razorsand vaccum cleaners

Home security increased due to the introduction of proch lights and burglar alarms

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Technological advancements remained as a feature of the boom, total production of American industry increased by 50%

It ensured people had money in their banks, increasing demand for consumer goods e.g. radios and washing machines

Other advancements included plaster, traffic lights and loudspeakers

Aviation and chemical industries also took off providing thousands of jobs

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Cars had previously only been available for the rich, during the boom however they became more affordable. Due to Ford's advancements in the production line

Famous model - Model T - by the end of the 20's America was producing 85% of the world's cars

Transport increases allowed more flexibility as people were able to travel further to work

Government spent $75 million on road improvements, allowing better and more efficient links

Railways nationalised and extended allowing more goods to be transported to previously unaccessable places

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WW1 help America set a frim foundation for the boom

The failing of Britain and Germany to continue to provide trade, had allowed USA to be able to do it instead

The amount of loans given allowed them to become a Creditor nation

New York overtook London as the financial capital of the world

During the war, Liberty bonds allowed America to cover their war costs.

When paying people back lots of money was genrealted into the economy, creating a strong foundation

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During the time of the boom, there was a feeling of entrepreneurship

People believed in the American Dream again, the idea of building one's self up from nothing. An example of this was Rockefellor who started his own oil company and became America's richest man

Henry Ford , Ford founder, also made his riches inventing the assembly line. Car manufacturing became more efficient making him more money

The idea of rags to riches was a popular idea, exemplified by philanthropist Carnegie (made his money from steel) who gave up his riches to help build academic institutions

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