Causes of the Economic Boom in America in the 1920
Causes of the Economic Boom in America in the 1920’s
Roaring Twenties:
1920-29
Time of noise, lively action and economic prosperity
WW1 was good for American business:
Factory production had risen sharply
Meet demands of the war
Capture markets that used to be dominated by Europe
When war was over, countries still bought from America
Republican Government
Presidents Harding, Coolidge and Hoover:
Help American business by increasing taxes on foreign goods
Fordney- McCumber Tariff Act
1922
Encouraged Americans to buy American goods
Led to a boom or an increase in the amount of goods being made and sold by American business
Key Points
America’s economy recovered quickly after WW1
The government was Republican and favoured ‘big business’
After the war, the government followed a policy of isolationism and focused on internal affairs
By the mid-1920s the economy was booming
Factors leading up to the Boom:
US industry had been boosted by the war
Republican government’s policy of laissez faire
Protectionism- import duties raised (1922)
Mass production – cars, radios, refrigerators etc.
Hire purchase- people could buy on credit.
Massive consumer spending.
Case Study
The greatest business boom took place in the motor car industry
Three big car producers:
Ford, Chrysler and General Motors
Henry Ford set out to build a car that everyone could afford.
Mass-producing his first car in 1909
Was slow, ugly and difficult to drive
Was still America’s best-selling car for the next 18 years
Price never increased only ever dropped
$1200 in 1909
$295 in 1928
By the end of the 1920s Ford was producing more than one car per minute
Henry ford was able to sell cars more cheaply because they were mass-produced.
Every part was standardised
Only one colour
One engine size available
Produced large numbers of cars using an assembly line
Needed fewer workers
Cut the cost of paying wages
Roaring Twenties:
1920-29
Time of noise, lively action and economic prosperity
WW1 was good for American business:
Factory production had risen sharply
Meet demands of the war
Capture markets that used to be dominated by Europe
When war was over, countries still bought from America
Republican Government
Presidents Harding, Coolidge and Hoover:
Help American business by increasing taxes on foreign goods
Fordney- McCumber Tariff Act
1922
Encouraged Americans to buy American goods
Led to a boom or an increase in the amount of goods being made and sold by American business
Key Points
America’s economy recovered quickly after WW1
The government was Republican and favoured ‘big business’
After the war, the government followed a policy of isolationism and focused on internal affairs
By the mid-1920s the economy was booming
Factors leading up to the Boom:
US industry had been boosted by the war
Republican government’s policy of laissez faire
Protectionism- import duties raised (1922)
Mass production – cars, radios, refrigerators etc.
Hire purchase- people could buy on credit.
Massive consumer spending.
Case Study
The greatest business boom took place in the motor car industry
Three big car producers:
Ford, Chrysler and General Motors
Henry Ford set out to build a car that everyone could afford.
Mass-producing his first car in 1909
Was slow, ugly and difficult to drive
Was still America’s best-selling car for the next 18 years
Price never increased only ever dropped
$1200 in 1909
$295 in 1928
By the end of the 1920s Ford was producing more than one car per minute
Henry ford was able to sell cars more cheaply because they were mass-produced.
Every part was standardised
Only one colour
One engine size available
Produced large numbers of cars using an assembly line
Needed fewer workers
Cut the cost of paying wages