The economic boom

• Economic boom


  A period of great economic growth and prosperity
• The term 'economic boom' of the 1920s refers to a period of great economic growth and prosperity in the USA
• Causes of the economic boom in the 1920s

  • Industrial strength
  • Impact of World War 1
  • Republican government policies
  • New industries and new methods
  • Changing attitudes
• Industrial strength


  • Natural resources and raw materials
  • Examples of growth in the economy e.g. leading producers
  • Statistics on production and exports
  • Examples of economic strength after the war e.g. growth in industry and agriculture
• Impact of World War 1

  • Technological change - mass production, assembly lines
  • Laissez-faire policies
  • High tariffs on imported goods
  • Low taxation - the 'trickle down effect'
• How Republican government policies benefited the US economy


  • Technological change - development of electricity
  • Mass-production - examples
  • Mass-marketing - examples
  • Credit - development of consumerism
  • Confidence - a 'state of mind'
• Mass-produced goods have to be sold as enough people do not know about or buy the goods, so companies invested in advertising
• The growth of credit made it much easier for people to buy goods even though they did not have enough cash to pay for them on the spot
• The economic boom led to increased spending in people's daily lives
• Henry Ford


  Dedicated, efficient, strong work ethic
• Henry Ford was against unions
• Ford's Model T price dropped from $800 to $295
• Ford produced 15 million Model T cars
• Ford's first factory was in Detroit in 1903
• Ford's company grew to 30 million cars produced
• Ford's company grew from $0 to $37,000
• Impact of the Ford Motor Company


  • Created jobs, powered many industries, made cars affordable for the masses
• As cars became more affordable


  People's lives changed as they could have a whole new social life
• Ford had a positive impact on America through his charity work and legacy
• Ford's anti-union policies had some negative impacts
• The car had both positive and negative impacts on US society, such as increased mobility but also increased traffic accidents and pollution
• Innovation led to new products being developed such as cars, radios and washing machines which were sold at lower prices due to economies of scale.
• Mass production meant that goods could be produced more quickly, cheaply and efficiently than ever before.
• The US was the first country to adopt mass production techniques
• The conveyer belt contributed to the development of:

  The Fordist production system and mass production techniques.
• A key benefit of the conveyor belt was:

  Increased efficiency and reduced labor costs.
• ASSEMBLY LINE


  The mechanised way of producing goods on a moving line
• BILLBOARD


  A large board, usually built next to a road or on a large building upon which posters are placed to advertise goods and services
• CONSUMER GOODS


  Products for the consumer
• HIRE PURCHASE


  Being able to buy products and pay for them in instalments over time, gaining ownership later
• TARIFF


  A tax on foreign goods coming into a country, making those goods more expensive
• PROTECTIONISM


  Policies designed to protect domestic industries from foreign competition
• MASS MARKETING


  Producing and selling many goods by widely advertising the products
• REPUBLICAN GOVERNMENT


  A government that believes in rugged individualism, where people should work hard and not rely on anyone, including the government, for help