Unit 1 - USA 1910-1929

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What were the causes of the Economic Boom?

  • Mass Production
  • Mass Marketing
  • New Technology
  • Natural Resources
  • Republican Presidents
  • Confidence
  • World War 1
  • Credit
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Economic Boom: Mass Production

  • Creation of the assembly line
  • Led to producing goods quickly
  • Quickly made = Cheap = Increase in sales
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Economic Boom: Mass Marketing

  • Advertising encouraged shopping

More consumer goods = More Sales = More jobs

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Economic Boom: New Technology

Such as -

  • Cars
  • Radios
  • Hoovers
  • Telephones
  • Phonographs

Everyone wanted to own the latest technology.

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Economic Boom: Natural Resources

Lots of Timber, Oil, Coal and Iron Ore were sold to USA buinesses in order to make the consumer goods.

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Economic Boom: Republican Presidents

Policies:

Low Taxation

Lasseiz-Faire

Tarrifs

Rugged Individualism

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Economic Boom: Confidence

Americans believed they would alway have jobs and money. Therefore, they kept on spending their money on goods.

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Economic Boom: World War 1

USA loaned money to Britain and France.

Britain and France used this money to buy resources (weapons and ammunition...) from USA.

USA made money from both the sale from the resources and the interest from the loan.

This was known as the ONE WAY TRADE.

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Economic Boom: Credit

Americans could easily borrow money. They used this money to spend on goods.

More Sales = More Jobs

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Who didn't benefit from the Economic Boom?

New Immigrants

Black Americans

Small Scale Farmers

Workers in Old Industries

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Why? (New Immigrants)

Many found jobs, however many didn't.

Many lacked good English, Education and Skills.

Racism/Prejudice towards foreigners.

Wages = Lowered.

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Why? (Black Americans)

Many were share croppers.

They were poorly educated.

Racism stopped oppurtunities.

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Why? ( Workers in Old Insutries)

No one wanted old industrial goods as there were new cheaper alternatives.

For example,

Oil replaced Coal; Nylon replaced Cotton; Steel replaced Iron.

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Why? (Small Scale Farmers)

Food overproduction = Drop in costs.

New technology replaced the farmers.

Rent increased for sharecroppers.

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What were the causes of the Economic Crash?

Overproduction

Poverty

Tarrifs

Too Mnay Goods

Panic Selling

Professional Traders

Panic

Buying on the margin

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Economic Crash: Professional Traders

They predicted the drop in profits from the shares.

Started to quickly sell their shares before they dropped in profits.

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Economic Crash: Buying on the margin

Millions of people had bought shares with borrowed money.

In order to make sure they could pay back the borrowed money, they copied the share traders and sold their shares.

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Economic Crash: Panic

More shares being sold = Quickly dropping share prices.

Panic = Selling shares for less than they were originally bought a.

Many couldn't sell their shares and failed to repay the banks.

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Economic Crash: Poverty

50% of Americans couldn't afford to buy consumer goods.

(Eg. Farmers, Black Americans, New Immigrants and Workers in old industries.)

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Economic Crash: Tarrifs

  • USA put import tarrifs on foreign goods
  • Other countries copied and did the same to USA
  • This meant that goods couldnt be sold abroad.
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Economic Crash: Too Many Goods

The people who could afford goods had already bought them, therefore too many goods were being made.

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Why did life change for the women?

Right to work

Right to vote

Mass marketing

World War 1

....Flappers

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Women: Right to Vote

Sufferagetes has won the vote for women.

Women had political power.

They were then taken seriously by men.

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Women: Right to work

WW1 gave women opppurtunities to do the mens work.

The boom increased jobs.

This meant women earned wages and had their own money.

As a result, they gained independence from the men.

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Women: World War 1

Gave womens jobs.

Gave independence to women while the men were away fighting.

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Women: Mass Marketing

Advertisers encourages women to spend their wages.

Labour saving devices in their homes.

Makeup and Fashion.

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