590344
Beschreibung
Mindmap von eichanghai, aktualisiert more than 1 year ago
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Causes of the
Economic Boom
- The Multiplier Effect
- Technological Advances
- New forms of media helped to stimulate demand
- Cinema and radio
- Cinema and radio
- Allowed huge increases in both the quantity
and variety of products on sale
- Automobile industry
- Henry Ford revolutionised the motor
vechile industry with new methods of
mass production
- The growth of this sector had a knock on effect, that
saw the growth of new services
- Garages
- Motels
- Petrol Stations
- Used Car Sales
- Garages
- Improved transportation also afforded new
opportunities for insutry
- Goods could be much more easily
be moved from factories to their
markets
- Goods could be much more easily
be moved from factories to their
markets
- Henry Ford revolutionised the motor
vechile industry with new methods of
mass production
- Electrical Consumer Goods
- Facilitated the development of labour
saving devices
- Facilitated the development of labour
saving devices
- Automobile industry
- New forms of media helped to stimulate demand
- Technological Advances
- Easy Credit
- By 1929 almost $7 billion worth of goods
were Sold on credit; this included 75% of
cars and 50% of major household
products
- Credit facilities enabled consumers
to buy goods they otherwise could
not afford
- This consumer boom was greatly aided by the availability of hire
purchase - the ability to buy goods on credit. Because times were good,
people were not worried about having to keep up payments.
- By 1929 almost $7 billion worth of goods
were Sold on credit; this included 75% of
cars and 50% of major household
products
- Inheritance from the past
- Isolationism + Racism
- The Red Scare
- Racism
- Immigration Policy
- The Red Scare
- Strong, educated worforce
- Entreprenurial Flair
- Entreprenurial Flair
- Prior to 1920's - 1st industrial revolution
- WW1
- Stimulated Growth in agriculture and "staple" industries
- Political
- Stimulated Growth in agriculture and "staple" industries
- Society’s beliefs
- Laissez Faire
- Rugged Individualism
- Laissez Faire
- Isolationism + Racism
- Role of the Federal Government
- Republican Presidents followed
a policy of laissez faire,
meaning that the government
interfered as little as possible in
the running of the economy.
- However, due to advances in
technology the Government passed
The Federal Highway Act of 1921 that
gave responsiblility for road building
to the central government rather than
individual states
- However, due to advances in
technology the Government passed
The Federal Highway Act of 1921 that
gave responsiblility for road building
to the central government rather than
individual states
- believed that business should get on with
the process of creating wealth.
- "The chief business of the American people is business” Calvin
Coolidge
- Andrew Mellon, Treasury Secretary in Coolidge’s
administration believe in a free market
- Mellon proposed that wealth filtered down
naturally to all classes in society; so the best way
to increase living standards for all was to do
everything possible to enable the rich to continue
to make money and invest in industrial
development
- Mellon proposed that wealth filtered down
naturally to all classes in society; so the best way
to increase living standards for all was to do
everything possible to enable the rich to continue
to make money and invest in industrial
development
- Andrew Mellon, Treasury Secretary in Coolidge’s
administration believe in a free market
- "The chief business of the American people is business” Calvin
Coolidge
- Fewer Regulations
- The Federal Trade Commission was
increasingly unable to and unwilling to operate
effectively
- Economies in Government meant fewer
regulations and fewer personnel to enforce them
- The Federal Trade Commission was
increasingly unable to and unwilling to operate
effectively
- Tax Reductions
- The government helped in this by keeping taxes as low
as possible. This had the dual purpose of allowing
businesses to invest more money to expand their
operations and giving consumers more money in their
pockets to keep spending.
- Taxes were reduced significantly throughout the
1920’s usually to the benefit of the wealthy and
the expense of the poor
- Taxes were reduced significantly throughout the
1920’s usually to the benefit of the wealthy and
the expense of the poor
- The government helped in this by keeping taxes as low
as possible. This had the dual purpose of allowing
businesses to invest more money to expand their
operations and giving consumers more money in their
pockets to keep spending.
- High Tariffs
- High tariffs were introduced through the
Fordney-McCumber Act 1922
- High tariffs were introduced through the
Fordney-McCumber Act 1922
- Republican Presidents followed
a policy of laissez faire,
meaning that the government
interfered as little as possible in
the running of the economy.
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