The rise and fall of the American economy 1910-1929

  • Created by: KAustria
  • Created on: 31-05-14 21:06
Why was there an economic slow down between 1919-1922?
1. Return of demobbed US soldiers form Europe which led to a rise in unemployment 2. Europe beginning to recover and becoming less reliant upon America for food and manufactured goods 3. A large numbe of strikes in the textile coal and steel industr
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How many people were registered as unemployed in 1921?
5 million
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What were the 6 main Long-term factors for the economic boom?
1. Natural Resources 2. Cheap Labour Force 3. Protection of home industries 4. Confidence in the US economy 5. Impact of WWI 6. Spread of electricity
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How were home industries protected by government?
The attitudes of the Republicans 'Laissez Faire. They introduced tariffs to make imports expensive.
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How did WWI contribute to the boom?
1. kept out of the war until 1917 2. Able to supply Europe with resource and munitions 3. US banks gave out loans to Europe and businessmen invested in Europe 4. War stimulates technological advances
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How did electricity contribute to the boom?
Enabled the development of household domestic goods.
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What were the immediate factors of the economic boom?
1. Speculation 2. Easy availability of crest 3. Growth of the stock market 4. Growth in consumerism 5. Technological change
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How did the growth in consumerism contribute to the boom?
1. Wages increased by 8% which gave people buying power 2. greater range of products 3. Effective use of advertising 4. Availability of cheap credit 5. Electricity
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How did technological change contribute to the boom?
1. Electricity was a cheap, flexible source of power 2. conveyer belt, assembly line 3. Availability of new material - Bakelite, steel girders
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What was President Warren Harding's policy and what were the key features?
1921-1923 1. 'Back to normalcy' 2. reduce and limit government interference 3. Reduce tax burden on the rich
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What was President Calvin Coolidge's policy and what were the key features?
1923- 1928 1. 'Laissez Faire' 2. Limited involvement in the day-to-day running of the economy 3. Reduce regulation so businesses could make their own decisions
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What was President Herbert Hoover's policy and what were the key features?
1928-1933 1. 'Rugged Individualism' 2. People achieved success through their own hard work 3. People should expect less from the government
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What did the republican presidents introduce to protect home industries?
Tariffs imposed on imported goods. The fordney McCumber Tariff Act raised imported duties to the highest level.
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What were the 3 main key features of the new consumer society?
1. Advertising 2. Household appliances and electrical goods 3.New types of consumer goods
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What proportion of America had electricity in 1927?
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What was the supermarket to be opened and when did this open?
Piggly Wiggly store in 1916. memphis Tennesse
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Who introduced the newest method of production and what was their method?
Henry Ford (Ford Cars) had pioneered the use f the electric conveyer belt and assembly line.
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How did assembly lines work?
Conveyer belt carried partly assembled car to ganags of men spaced along the line. Each gang of men performed a specific task. The parts were passed to them through overhead conveyer belts.
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how long did it take to assemble a Ford Model T?
It used to take 13 hours but this was reduced to 1 hour 33 minutes.
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What affect did mass production have on prices of goods?
Caused them to decrease.
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How much did the Model T cost in 1914 and in 1926?
1914: $850 1926: $295
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What was Henry Ford's factory in Detroit like?
Operated 24 hours a day. 3 x 8 hours shift system and employed 80,000 people
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What were the two other sectors that experienced a boom?
1. Transport system 2. Construction Industry
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How much miles of roads increased by 1929?
It doubled
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How many flights were made in 1929?
162,000 flights
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What city experienced a boom in skyscrapers? Examples?
New York. Woolworth Building 1913. Empire State building 1931.
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Who were the groups in society that did not prosper during the boom?
1. Farmers 2. Black Americans 3. Immigrants 4. Trade Unions 5. Older Traditional Industrialists
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How were farmers affected during the boom?
1. Decline in European markets led to fall in prices 2. Increased mechanisation farmers struggled to find market for their product 3. Hobos 4. 1928: $13 billion from $32 billion
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What occupations id black Americans typically hold?
Labourers or sharecroppers who worked long hours and lived in slum conditions
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How many black Americans lost their job in the 1920s?
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How were trade unions affected by the boom?
1. Red Scare damaged Union membership 2. Employers refused to employ union members
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What percentage of Americans lived close or below the poverty line?
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What were the long-term factors to the economic crash?
1. Overproduction 2. Fall in demand of consumer goods 3. Boom in land and property values 4. Poorly regulated bank sectors
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Describe how overproduction contributed to the crash?
Overproduction lead to the market becoming saturated with unsold goods, which meant factories had to close and workers were laid off. Same effect with farmers
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How did the un even distribution of wealth contribute to the crash?
Those who could afford the goods did not need to buy them again. Those below poverty line could no afford them at all.
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How did the act of increasing tariffs create a negative effect on the US?
Foreign governments copied the US which made it harder for American goods to be sold abroad.
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What were homeowners left with after 1926 and what does this mean?
Negative Equity - People owned property less than they originally paid for.
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What did banks not do which contributed to the crash?
Did not keep sufficient capital in reserve to support during economic down turn.
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What were the 2 short-term factors for the end of prosperity?
1. Over speculation on the stock market 2. Availability of easy credit
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How many shareholders were there in 1929?
20 million
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What was the stock market value in 1925 and October 1929?
1925 : $27 billion 1929 : $87 billion.
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What happened as a result of over speculation?
Share prices had risen to unrealistic levels
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What did it mean if people bought with easy credit?
Many bought 'on the margin'
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In 1929, what percentage of the purchase price of shares was borrowd?
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What happened on Saturday the 19th October 1929?
Prices of shares fall. 3.5 million shares traded
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What happened on the Monday 21st of October 1929?
Prices continue to fall. 6 million shares are traded in
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What happened on Thursday the 21st October 1929?
Black Thursday. Sharp decline in share prices. 13 million shares are traded in
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What happened on Friday the 25th of October 1929?
Bankers pump money into stock market. Slight rally in prices
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What happened on Monday the 28th of October 1929?
Dramatic falls in share prices as panic returns.
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What happened on Tuesday the 29th of October 1929?
Wall Street Crash. 16 million shares traded in
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What were the immediate effects of the Wall Street Crash?
1. Shares worthless 2. Shareholders lost everything - increase in suicides 3. Loss in confidence in the finance sector 4. Less consumer spending 5.Unemployment
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Other cards in this set

Card 2


How many people were registered as unemployed in 1921?


5 million

Card 3


What were the 6 main Long-term factors for the economic boom?


Preview of the front of card 3

Card 4


How were home industries protected by government?


Preview of the front of card 4

Card 5


How did WWI contribute to the boom?


Preview of the front of card 5
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