History - The Causes of the Boom

A mnemonic to help remember why the US economy boomed in the 1920's.

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  • Created by: FiFi
  • Created on: 21-04-11 09:52

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Strong Confidence

  • The USA was a confident country
  • People moved to the USA because it was an attractive country
  • The USA got more money from this

War

  • America took over many European markets during WW1
  • The USA was a main leader in industry. E.g. Chemicals

Advertising

  • Companies were spending more money on advertising but making lots of money in return from sales
  • The items that were being made had to be sold - companies advertised to sell
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Policies

  • Republican policies (US Presidents from 1920-1932 were Republican)
  • Lower Taxes on income - people had more money to spend
  • Imported goods had tariffs on them - people were encouraged to buy US goods
  • Lassiez Faire meant finance and business were not interfered with

Technology

  • Plastics like Bakolite were made in the 1920's
  • There were new innoations like switch boards
  • New technology meant companies were becoming more modern

Huge Mass Production

  • Companies made thousands of products on a cheap, standardised scale
  • Many Americans could now afford consumer goods
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Extra Credit

  • The growth of credit made it easier for people to buy things they wanted
  • People could hire these products or pay by instalment

Resources

  • America had wood, iron, coal and oil
  • These helped America to be a main industrial leader by the 20th century
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