Zusammenfassung der Ressource
Key Topic 1: The US Economy 1919-29
- Impact of the first world war.
- Europe at the end of the war.
- War ended in 1918.
- Many European
countries borrowed
huge sums of money.
- Britain- $4,277
- France- $3,405
- Production of ordinary
goods were destoroyed by
the fighting.
- The USA
at the end
of the
war
- USA had no
war
damage.
- US
farms
and
factories
producing
at
full
capacity
- To export
goods to
Britain and
France.
- Indusrty
- Mass Production.
- Making goods that have
standardized parts to make
them quicker and cheaper to
assemble.
- After the war ended
they could make good
cheaply and quickly.
- Argricultre
- European troubled with food shortages.
- Campaigns asked for US people to eat less food.
- Ploughed up land that was previously used for cattle grazing.
- To produce more food.
- In early 1920's USA was producing.....
- 30% of worlds wheat.
- 75% of its corn
- 55% of cotton
- 70% of its petrol.
- A time of adjustment
- Laissez Faire
- The policy that buisnesses can
run their own affairs rather than
passing laws.
- Lead to a problem after the war
- Prices dropped and wages fell.
- Strikes and un-employment rose
- Isolationism
- USA didn't want to be part of world affairs.
- Financial Isolationism
- Made some exceptions in early 1920's
- May 1921, Emergency Tariff Act
- Increased the import taxes on wheat, sugar, meat, wool and other.
- June 1921, Budget and Accounting Act
- put control on government spending
- November 1921, Revenue Act
- changed taxes, charging
buisnesses more, but
cutting the wartime tax
on high levels of profit.
- September 1922, Fordney and McCumber Tarriff Act
- Raised Tariffs.
- Immigration restrictions.
- Previously it had an 'open door policy'
- 1900-1920
- 12.5 immigrants
- 1921 Emergancy quota Act
- 3% let in
Anmerkungen:
- 3% of the original amount where aloud to come through before.
- 1924 Immigration Act
- 2%
- 150,000 aloud through
- Not all winners
- the older industries
- e.g. coalmining, shipbuilding and railway.
- Coal was no longer needed
due to the new electricity
- problems with farmers
- during the war they were in full production
- prohibition meant
they didn't need
wheat or grapes.
- new clothing fabrics, meant cotton and wool went out of demand.
- low paid workers
- sharecroppers
- Boom!
- Made new products cheaper.
- Wages were rising
- rose by 8% in the 1920's
- Many goods ran of electricity
- Hire purchase
- Buy and pay later
- buying shares
- ordinary people stared to buy and sell shares
- the stock market boom.
- as more and more ordinary US people
brought shares indrusties went up.
- buying on the margin
- people would borrow money from banks and then buy shares due to the
prices going up people would make a profit and then sell them at a higher
price, give the loan back with a profit.
- what is a share.
- a share in a company
- end of year profits are shared between share holders
- Mass Production
- Mass producing a Ford
- one kind of car
- Standarization
- Division of labour
- Assembly Line
- 12 hr per car
- 1hr 33 minuets
- Due to ford creating mass
production many other
companies used mass
production within their
factories
- e.g. Radio and Fridges
- effects
- Made producing a
product cheaper
and quicker
- 1908 $850 for one car
- 1926 $300 per car
- 1m cars in the US 1915
- 28m in 1939
- ford used alot of other markets.