the boom

• What years did the USA stay out of World War I?

  1914-1918
• How did the USA benefit financially during World War I?

  By selling supplies to European countries
• What was one effect of the USA taking over European markets during the war?

  Increased profits for American businesses
• What did European countries use to pay for supplies from the USA?

  Gold
• What role did advertising play in the 1920s consumer society?

  It convinced people they needed new products
• How did hire purchase affect consumer behavior in the 1920s?

  Allowed people to buy goods they couldn't afford
• What percentage of cars were bought on hire purchase by 1929?

  75%
• What percentage of electrical appliances were bought on hire purchase by 1929?

  50%
• What does 'laissez-faire' mean in the context of Republican government policies?

  Minimal government interference in business
• What is 'rugged individualism'?


  People should support themselves without government help
• How did the Republican government support American businesses?

  By cutting taxes and introducing tariffs
• What did the Fordney-McCumber Tariff Act do?

  Imposed high taxes on imported goods
• What is the cycle of prosperity in the economy?

  • More demand for goods leads to more production
  • More production creates more jobs and wages
  • Increased wages lead to more spending on goods
  • Low demand and high tariffs reduce foreign spending
• Who was Henry Ford?

  Founder of the Ford Motor Company
• What was the significance of mass production in the automotive industry?

  Made cars affordable for ordinary people
• How did the assembly line change car production time?

  Reduced production time from 13 hours to 1.5 hours
• What was the cost of the Model T in 1908?

  $850
• What was the cost of the Model T by 1925?

  $295
• How did the motor industry impact job creation?

  Created jobs in related industries like steel
• What was one social impact of cars on American society?

  Increased freedom to travel and create suburbs
• How did cars affect the oil industry?

  Increased demand for petrol significantly
• What was the average annual income increase in the 1920s?

  More than 40%
• What percentage of American families earned less than $2000 in 1929?

  Over 60%
• What percentage of Americans earned less than $1000 in 1929?

  42%
• How much wealth did the richest 5% of Americans hold?

  30% of all wealth
• What was the economic situation for farmers during the 1920s boom?

  Farm incomes fell by 30%
• What was a consequence for many farmers during the 1920s?

  Many lost their farms due to loans
• How did most African Americans earn a living in the 1920s?

  As sharecroppers or renting small farms
• What were the living conditions for most African Americans in the 1920s?

  Extreme poverty with awful living conditions
• How did the new industries impact employment in the 1920s?

  Created jobs due to increased demand for materials
• What happened to Native Americans' land during the 1920s?

  Lost more land to white people
• What was the quality of education for Native Americans in the 1920s?

  Lower-quality education compared to others
• How many Americans owned stocks in 1920?

  4 million
• How many Americans owned stocks by 1929?

  20 million
• What does 'buying on the margin' mean?

  Borrowing money to buy stocks
• What was a potential problem with the stock market in the 1920s?

  People borrowed large sums to invest
• How did President Hoover's policies affect the stock market?

  He did not impose rules to control it
• What was the effect of new companies on the stock market?

  Made it seem more exciting and risky