1919 : Congress refuses to join league.
1920 : Republican Warren Harding elected as President.
1928 : Herbert Hoover - new President.
1929 : Wall Street Crash
1930 : Franklin Roosevelt elected.
1939 : WW2 begins in Europe.
1941 : America join the War.
5 reasons for the boom :
- Industrial Strength
- World War 1
- Republican points
- New Industries/Methods
- State of Mind
- USA was a vast country, rich in natural resources and a growing population.
- It didn't need to import many raw materials and it didn't need to export all its goods.
- The home market was large and growing.
- By WW1, America led the world in most areas of industry.
- It had massive cal, steel and textile industries - leading oil producer.
- It developed cars, telephones and lighting.
- American agriculture had been the most effective and productive in the world.
- It became so successful that farmers had become able to produce more than they could sell.
World War 1
- America tried to stay out of 1st World War but they lent money to the Allies for the war.
- They sold massive amounts of food, which gave this 'one -way' trade, America a massive boost.
- The Americas joined in 1917, fortunately, they were not in the war long enough for it to drain resources the way it did in Europe.
- Republicans believed the government should interfere with the citizens every day life as little as possible = 'Laissez - Faire'
- After Wilson, Harding promised to keep a 'normday' of USA and keep European matters separately.
- Set up tariffs which made it expensive to import foreign goods in the USA.
- Republicans kept taxations as low as possible, this bought benefits to the middle class but even more to the wealthy.
- Harding died in 1923 but his successor was republican.
- These new methods bough an enormous boom in consumer goods - telephones, radios, vacuum cleaners.
- Big industries used sophisticated sales and marketing techniques to get people to buy their goods.
- Mass nationwide advertising.
- By now - pay later schemes.
- In 1929, 4.8 million cars were made.
- In America, cars were more common :
- America : 1 in 5 owned a car
- England : 1 in 43 owned a car
- Russia : 1 in 7000 owned a car
A State Of Mind
- Most Americans believed they had a right to prosperity
- Consuming more seemed more American.
- Main Aims in life :
- - Have a nice house
- - Good job
- - Plenty to eat
- - Home to be filled with the latest goods
Problems in Farming
- Farm income dropped from $22 billion (1919) to $13 billion (1928)
- Reasons why farmers had problems :
- 1) Loss of European Market : had shipped millions of tons of grain to Europe but due to WW1, Europeans could not afford it. Also, the tariffs made grain more expensive.
- 2) Competition with Canada.
- 3) Overproduction : From 1900 to 1920, more and more land was being farmed. Improved machinery made US agriculture…