Boom

• Mass Production

  Way of making lots of products quickly. This can involve:

  Machinery

  Improving manufacturing process
• Mass Production

  Many US industries embraced mass production in the 1920s

  One of the key industries - Car industry
• Mass Production

  Three big car manufacturers in the US in the 1920s were

  Ford

  Chrysler

  General Motors
• Mass Production

  1913 - Henry Ford developed assembly line with the Ford Model T car. In 1920s Model Ts were made every 10 seconds.
• How did Mass Production help cause the Boom?

  Other industries adopted the assembly line. This made other goods cheaper for US citizens to buy.
• How did Mass Production help cause the Boom?

  The expansion of the car industry led to the growth of other industries. Steel, rubber, glass and oil manufacturers supplied parts to the car industry.
• How did Mass Production help cause the Boom?

  By 1926, there were 20 million cars in the US. Mass production of cars led to improvements in the USAs road network and the development of cities and suburbs.
• Advertisement + Consumer Goods

  Mass production meant that US citizens had a vast choice of products

  Consumers could purchase products from

  Chain - stores

  Mail - order companies
• Advertisement + Consumer Goods

  Companies could advertise their products through:

  The radio

  The News

  Newspapers + Magazines

  Billboards
• Advertisement + Consumer Goods

  Persuasive advertising fuelled a high demand for new technology such as:

  Vacuum Cleaners

  Washing Machine

  Fridges
• How did Advertisement + Consumer Goods help cause the Boom?

  Advertising caused an increase in demand for new products. This increased mass production and profits for businesses.
• How did Advertising + Consumer Goods help cause the Boom?

  Cycle of Prosperity - Increase demand for consumer goods -> Increased Mass Production -> Increased Employment -> More money available to spend on Consumer Goods
• Hire - Purchase Schemes

  Hire-Purchase - a person can purchase goods without having the money needed to buy them outright. Consumers could buy a product like a vacuum cleaner on credit. They would then pay for the product in monthly instalments over many months.
• How did Hire-Purchase schemes help cause the Boom?

  H-P meant that people could buy a lot of products without needing to pay for them on the day of purchase. This encouraged people to buy more new goods. It also increased mass production and profits for businesses.
• How did the Republican Party protect the interests of businesses in the 1920s?

  Reducing Taxes - This meant that businesses made more profits and then could then invest their profits back into the company. For example, they could build new factories.
• How did the Republican Party protect the interests of businesses in the 1920s?

  Republican Party had a laissez-faire approach to business. This meant that the government did not interfere with how businesses were run.
• How did Republican Policies help cause the Boom?

  The laissez-faire attitude meant that businesses were unregulated. This meant that businesses could make more profits, improving the US economy.
• How did Republican Policies help cause the boom?

  Fordney McCumber Tariff made foreign goods more expensive. This encouraged US citizens to purchase US goods. The tariff also protected US jobs and industries from foreign competition.
• Confidence in the Economy (Stock Market)

  Many US citizens believed the boom would last forever.

  More workers could purchase shares in companies than ever before.
• Confidence in the Economy (Stock Market)

  Workers bought shares 'on the margin'. This meant that the workers were buying shares with borrowed money. This was because the interest rates were low.

  Workers could sell their shares for profit because the economy was so successful.
• How did the confidence in the economy help cause the boom?

  Share prices continued to rise, meaning that many working class people made large profits on the stock market.
• How did the confidence in the economy help cause the boom?

  Workers could use these profits to either:

  Pay back the bank where they had borrowed money from

  Invest in even more shares to make more money
• Stock Market

  Playing the stock market became a national craze

  1920 - only 4 million people owned shares

  By 1925 - around 20 million people owned shares
• Stock Market

  1928 - Herbert Hoover said ' Americans today are nearer to the final triumph over poverty'