USA unit 4

• How did World War I impact the US economy?

  It improved the economy as US industry benefited from a lack of competition in Europe.
• What economic event occurred in the US during 1920-21?

  The US went into a post-war recession.
• What does "return to normalcy" refer to in the context of post-WWI America?

  It refers to a return to WASP views, emphasizing white male dominance.
• How were farmers affected during WWI?

  Farmers were encouraged to produce more food and took loans to buy more land and equipment.
• What happened to farmers after the war ended?

  Demand dropped, leading to falling prices and struggles to pay back debts.
• What was the impact of returning soldiers on the job market after WWI?

  Returning soldiers wanted their old jobs back, leading to huge competition in the job market.
• What was the outcome of strikes during the post-WWI period?

  Most strikes failed, and some led to companies going bankrupt, increasing unemployment.
• Which industries struggled after WWI?

  Old industries like coal struggled to keep up with water power and electricity.
• What was the government’s economic approach after WWI?

  The government adopted a Republican laissez-faire approach.
• How did tariffs affect US foreign trade after WWI?

  Tariffs encouraged Americans to buy US products, but foreign nations responded similarly, making it hard to sell overseas.
• What was the Spanish flu's impact on the US population?

  It killed 675,000 Americans between 1918 and 1920.
• What was the economic consequence of the Spanish flu?

  The large number of deaths among working-age adults caused severe economic dislocation.
• What happened to share prices in the 1920s?

  Share prices rose rapidly as demand increased.
• Who began buying shares in the 1920s?

  Ordinary people started buying shares for short-term profits.
• What was the consequence of people borrowing from banks to buy shares?

  Banks used people's investments to trade in shares, leading to financial instability.
• What happened in 1929 that affected the stock market?

  The Wall Street crash occurred as investors sold shares due to dangerously high prices.
• What was the result of the rush to sell shares in 1929?

  Share prices kept falling as more people rushed to sell.
• What happened to small investors during the Wall Street crash?

  Small investors lost everything, and many banks that gambled with customer money went bankrupt.
• What was the state of banks by 1933?

  One-third of banks were bankrupt.
• What were the key improvements of the New Deal?

  • The Emergency Banking Act: Closed banks to inspect and reopen stable ones.
  • The Economy Act: Cut government employees' pay by 15% to help the homeless.
  • The Beer Act: Ended prohibition, reducing mafia control and increasing revenue.
  • Offered work through alphabet agencies.
  • Rising power of trade unions improved living standards.
  • Federal Housing Administration for slum clearance and low-income housing.
• What were the stagnations of the New Deal?

  • Slight redistribution of wealth; top 5% had 30% of national income in 1929, reduced to 26% by 1938.
  • ⅓ of the nation still lived in poverty after 4 years.
  • Did not address underlying economic problems, focusing mainly on banking.
  • Unemployment rose by 3 million to a peak of 10.5 million by 1936.
  • Without WWII, the US might have faced another depression.
• What was the GI Bill of Rights of 1944?

  It provided support and improved employment opportunities for 8 million veterans.
• What benefits did veterans receive from the GI Bill of Rights?

  Free training and university education, lower interest loans for housing, and $20 billion of support.
• How did real wages change for workers after WWII?

  Real wages for workers increased by 50% in many industries.
• What was the impact of the post-war economic boom on consumerism?

  It led to a rise in consumerism with more variety of products available.
• What was the effect of the post-war baby boom on the economy?

  It increased demand for child-centered goods.
• What were Truman's 'Fair Deal' policies aimed at?

  They aimed to increase federal government spending.
• What was the impact of inflation in the post-WWII era?

  Prices rose significantly, leading to economic instability.
• What was the baby boom's effect on the workforce in the 1950s?

  Men returned to work while fewer women were employed.
• How did the government support the development of suburbs in the 1950s?

  The government funded the building of roads and homes, such as through the 1956 Highways Act.
• What was the impact of the Levitt company on housing in the suburbs?

  They mass-produced houses, making them cheaper and more accessible.
• What was the trend in technological innovation by the end of the 1950s?

  The USA was losing its place as a leader in technological innovation.
• How did the population shift in the 1950s affect inner cities?

  There was an emptying of inner cities as people moved to suburbs.
• What economic strategy did the government adopt in the 1950s?

  The government shifted from high spending of the New Deal to low interest rates to increase the money supply.
• What was the money supply in circulation in 1952 and 1960?

  In 1952, it was $170 billion, and in 1960, it was $215 billion.
• What was the impact of the Vietnam War on the US economy in the 1960s?

  The Vietnam War strained government finances and affected the economy negatively.
• What was stagflation in the 1970s?

  Stagflation occurred when businesses stopped expanding while inflation continued.
• What challenges did the government face in the 1970s?

  The government struggled with rising food and fuel prices and increased debt.
• What were the consequences of the fuel crises in the 1970s?

  They led to shortages, long queues, and fuel rationing.
• How did high fuel prices affect public sentiment in the 1970s?

  High fuel prices increased inflation and led to a confidence crisis among the public.