economic boom

• Which political party's policies helped increase America's wealth in the 1920s?

  Republican
• How did World War I contribute to the wealth of American companies by 1918?

  They exported weapons and food to Europe
• What economic event occurred in America immediately after World War I?

  A depression
• By what year did the American economy recover and begin to boom again after the post-WWI depression?

  1923
• What economic approach did the Republican presidents of the 1920s adopt?

  Laissez faire
• What does "laissez faire" mean in the context of the Republican economic approach?

  Leaving businesses alone to maximize profit
• How did people's confidence in the economy affect their purchasing habits in the 1920s?

  They bought more goods
• Name one consumer item whose sales increased during the early 1920s economic boom.

  Radios
• What were the four main factors that drove the economic boom of the early 1920s?

  • Mass production
  • Tariffs
  • Advertising
  • Credit
• How did mass production contribute to the economic boom of the 1920s?

  Goods were made cheaper
• How did tariffs impact the purchase of American goods in the 1920s?

  People bought American goods
• What role did advertising play in the economic boom of the 1920s?

  Encouraged people to spend
• What financial tools allowed people to buy expensive items without having all the money upfront?

  Hire purchases and credit
• Besides purchasing consumer goods, how else did increased confidence affect people's financial behavior?

  They invested in the stock market
• What financial activity involves buying shares of a company?

  Investing in the stock market
• How did people exploit bank loans to invest in shares?

  They took out loans
• How high would share value increase due to confidence speculation?

  Up to 300%
• How would people buy consumer goods such as vacuums and radios?

  Deposit and pay monthly installments
• What marketing methods were used to persuade people to buy?

  Billboards, mail order catalogues, radio
• Name one shop that used the marketing methods to persuade people to buy?

  Sears
• Which car manufacturer is presented as a case study for the economic boom of the 1920s?

  Ford
• What innovation did Ford introduce in 1913 that revolutionized manufacturing?

  The first production line
• What was the result of Ford's mass production techniques on car production time in 1927?

  One car every ten seconds
• What was the name of Ford's most popular car during this era?

  Ford Model T
• By the late 1920s, what was the car industry's position in the USA regarding employment?

  Biggest employer
• How many jobs were in the car industry by the late 1920s?

  4 million
• Besides car factories, what other industries benefited from the booming car industry?

  Steel, leather, road building
• What sentiment did the Model T represent among Americans in the 1920s?

  Entitlement to wealth
• What was the impact of Ford's assembly line on production time?

  14 hours to 93 minutes
• How did Ford's production method affect the cost of cars?

  Became cheaper
• What other new materials were produced in the 1920s?

  Canned and synthetics/rayon
• How did the USA's national income compare to that of other countries in the 1920s?

  Bigger than many combined
• How did the 1920s affect all Americans?

  Not roaring for all Americans
• What is a key characteristic of the 1920s regarding wealth distribution?

  Extreme wealth and extreme poverty
• How was wealth distributed in the USA during the early 1929?

  Unequal distribution
• What percentage of the population owned one-third of the nation's wealth in early 1929?

  5%
• What percentage of American families had incomes below the poverty line in 1929?

  71%
• What was the approximate poverty line income for a decent standard of living in 1929?

  Under $2,500
• Who did not share in the increased wealth?

  Farmers
• Why did farmers struggle in the 1920s?

  Demand for food fell