Chapter 1= Boom

• what else caused the boom?

  Radios, vacuums and washing machine sales grew in the 1920s. This was caused by 4 main factors
• Republican policies 


  American companies became rich by exporting food and weapons to Europe during the First World War. The Republican government helped to boost the economy even further b 1923
• Laissez- Faire


  Republicans believed in Laissez- faire ‘to leave alone’. They left businesses to make as much money as possible
• Tariffs (1-longer definition)

  The republicans introduced taxes on imports. This meant USA goods were cheaper, encouraging people to buy US goods
• Low Taxes 


  Wages increased and taxes stayed low. This meant workers had more money to spend on American goods
• Mass production 


  Goods were made on a large scale using machines. Goods could be mage cheaper
• Tariffs (2-short definition)


  Taxes on foreign goods made American goods cheaper to purchase
• Advertising

  New advertising techniques encouraged people to spend. Newspapers advertised goods
• Credit 


  people could now get items on credit and pay in instalments, people didn’t need the money to buy the goods
• Henry ford 


  created the first production line- this allowed the mass production of goods
• Henry ford- By 1927


  one car was being produced every 10 seconds. Cars could now be produced cheaper s more people could afford to buy one. Most popular car was the Model T
• Henry Ford- Late 1920s 


  The car industry was the biggest employer in the USA. The car industry boosted other industries such a- steel, leather, gas, glass and road building
• Farmers 


  The demand for their crops had fallen after WWII. Europe has started to grow their own crops again
• Worker in old industries

  Many lost their jobs. New technology and new materials replaced workers in the coal and textile industries
• African Americans 


  They mainly worked in farming and were the first to be unemployed in the 1920s
• The poor

  The Laissez- faire approval did little to help the poor