USA 1910 - 1929 Boom and Bust

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  • Created by: chloe
  • Created on: 16-05-13 19:29

Boom

Cheap Labour Force - immigrants working for low prices.

Natural raw materials - Didn't have to import resources.

Spread of Electricity - new technology - assembly line allowed for mass production.

More goods sold - hire purchase - could pay monthly, advertising - after the 1st war - learnt propaganda techniques, persuaded people to buy products.

Republican Government - Laissez faire - didn't get involved in businesses - like a referee,if people didn't have a job - told to go get one,

Fordney McCumber tariff - taxes put on imported goods to protect American businesses. 

After 1st world war - lent money - getting interest back, took over market whilst European countries at war

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Bust

People not prospering - farmers

- dustbowls - land wasn't good to grow crops on, prohibition meant fall in demand for grain, synthetic materials meant less demand for cotton, overproduction. ShareCroppers - black farmers didn't have there own land - paid with half their crops.

Textiles industry  - shorter skirts and dresses - not as much material needed.

Coal industry - electricity overtook. Railway - trains not needed because of cars.

Viscious circle - Fall in demand for goods, businesses laid workers off, people didn't have jobs and money, demand fell again.

Couldn't export goods - over countires added import taxes to protect their businesses.

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Wall Street Crash

29th october 1929 - Black Thursday

Panic selling of shares, prices dropped.

Stock market collapsed.

Businesses went bankrupt, lots of suicides, banks closed overnight.

People who hadn't invested in shares lost money because banks had used money and now closed.

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