economic change

• impacts of post WWI depression and response

  rising unemployment

  1/4 of workers on strike

  poor working conditions, especially in coal industry

  boll weevil devastated southern cotton crops

  farms went bankrupt and it hurt black agricultural workers

  laissez faire + tariffs on American goods to protect industry
• what factors allowed 1920s boom

  mass production/assembly line/new management techniques utilising the scientific method

  laissez faire policies towards regulation

  higher purchase loans

  electrification of industry and homes/low taxes

  (republican attributes)
• growth of stock market encouraging investment and impacts of the bust

  Bull market

  Boom cycle led shares to go up in value and investors sell making profits

  Encouraged people to take out loans to invest, buy on margin

  Laissez faire attitude led to bust, lack of financial regulation
• How was recovery from great depression managed

  1/3 banks closed 1933

  25% workforce unemployed

  FDR created banking holiday and only reopened sound banks/federal spending to create jobs

  New Deal policies

  AAA + NRA

  1937 Wagner Steagall national housing act built low-income housing
• What factors fuelled post WWII prosperity

  Demand for consumer goods, rise in wages, farm subsidies, baby boom 146-61, increased government spending

  'Fair Deal' policies proposed by Truman

  Nappy sales increased by $18 million

  1946 Truman creates council of economic advisers

  Inflation sometimes an issue in post war era, food prices jumped 25% in 2 weeks
• changes in 1950s/60s america

  Americans felt positive, confident about the American way but hid problems, American way of life = anti communist

  1956 highway interstate act led to growth of roads/suburbs

  41,000 miles of road created

  Levittowns were suburban homes which were mass produced using scientific method $7,000 and $9,000

  By end of 1950s, America losing its place as technological innovators to Japan/transitor radios produced there

  Growth of large permanent military created more jobs in Southwest as did technology like air conditioning
• 1960s

  by end of 1960s, lost place as world's most important exporter

  cost of Vietnam war drained finances

  especially on social spending like Great Society
• 1. challenges of 1970s

  stagflation = business stops growing but inflation continues

  zero business/wage growth but continues to rise

  government responded by social security payments

  some pensions linked to CPI index

  very little government action
• 2. challenges of 1970s

  energy problems

  2 fuel crises

  1973 Arab Israeli War led to OPEC embargo on sale of oil to USA

  1979 general shortage of oil but no rationing like in 1973
• 3. challenges of 1970s

  government couldn't cope

  federal spending high

  social security and some pensions linked to CPI

  returning soldiers from Vietnam increased unemployment

  national and personal debt increased
• 4. challenges of 1970s

  crisis in confidence

  Carter told public to accept general falling standard of living amid rising unemployment and homelessness