What were the causes of the Economic Boom?
- Mass Production
- Mass Marketing
- New Technology
- Natural Resources
- Republican Presidents
- World War 1
Economic Boom: Mass Production
- Creation of the assembly line
- Led to producing goods quickly
- Quickly made = Cheap = Increase in sales
Economic Boom: Mass Marketing
- Advertising encouraged shopping
More consumer goods = More Sales = More jobs
Economic Boom: New Technology
Such as -
Everyone wanted to own the latest technology.
Economic Boom: Natural Resources
Lots of Timber, Oil, Coal and Iron Ore were sold to USA buinesses in order to make the consumer goods.
Economic Boom: Republican Presidents
Economic Boom: Confidence
Americans believed they would alway have jobs and money. Therefore, they kept on spending their money on goods.
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.
Economic Boom: Credit
Americans could easily borrow money. They used this money to spend on goods.
More Sales = More Jobs
Who didn't benefit from the Economic Boom?
Small Scale Farmers
Workers in Old Industries
Why? (New Immigrants)
Many found jobs, however many didn't.
Many lacked good English, Education and Skills.
Racism/Prejudice towards foreigners.
Wages = Lowered.
Why? (Black Americans)
Many were share croppers.
They were poorly educated.
Racism stopped oppurtunities.
Why? ( Workers in Old Insutries)
No one wanted old industrial goods as there were new cheaper alternatives.
Oil replaced Coal; Nylon replaced Cotton; Steel replaced Iron.
Why? (Small Scale Farmers)
Food overproduction = Drop in costs.
New technology replaced the farmers.
Rent increased for sharecroppers.
What were the causes of the Economic Crash?
Too Mnay Goods
Buying on the margin
Economic Crash: Professional Traders
They predicted the drop in profits from the shares.
Started to quickly sell their shares before they dropped in profits.
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.
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.
Economic Crash: Poverty
50% of Americans couldn't afford to buy consumer goods.
(Eg. Farmers, Black Americans, New Immigrants and Workers in old industries.)
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.
Economic Crash: Too Many Goods
The people who could afford goods had already bought them, therefore too many goods were being made.
Why did life change for the women?
Right to work
Right to vote
World War 1
Women: Right to Vote
Sufferagetes has won the vote for women.
Women had political power.
They were then taken seriously by men.
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.
Women: World War 1
Gave womens jobs.
Gave independence to women while the men were away fighting.
Women: Mass Marketing
Advertisers encourages women to spend their wages.
Labour saving devices in their homes.
Makeup and Fashion.