America - Boom, Bust and Recovery

America - Boom, Bust and Recovery

1. Model T ford

   • Mass Production
     • Techniques of mass production were adaptable and used to the production of radios, refrigerators and vaccum cleaners
   • In 1914 cars a Model T cost $850, by 1926 it was $295
     • This explains why the number of cars on the road rose from 8 million in 1920 to 23 million by 1930
   • By 1925, half the worlds cars were Model T Fords
   • Working conditions
     • 5th Jan 1914 Ford more than doubled their wages - reducing labour turnover meaning less money was spent on training
     • Reduced the length of the working day to 8 hours
     • These changes resulted in the increased stability of his work force
   • The peak year of production was 1924 when 1.6 million cars were made
   • Stimulated economic development
     • 15% of steel output went into cars
     • 80% of rubber production went to the car industry
     • 75% of plate glass went to cars
     • Stimulated servicing industries such as fuel stations
     • Increased mobility meant more roads needed to be built
       • In 1921 - 387,000 Miles of road, In 2929 - 662,000 miles of road
     • In 1929 about 10% of of the work force were involved either in car manufacture or in supporting industries
     • Car sales encouraged the growth of consumer creidit as not everyone could afford a car, even at lower prices
   • Social effects
     • It increased the growth of suburbs
     • More leisure activities as people could travel more freely

2. The Boom years

   • Urban development
     • In the 1920's cenus it was revelead more popele were living in urban areas than the country for the first time ever
     • 15% of the population were living in cities with more than half a million people
     • Chicago had topped 2 million and NY 5 million
       • In 1833 Chicago had a population of just 350
     • Between 1920 and 1930 the % of families with inside toilets rose from 20% to 51%
     • Central heating rose from 1% to 42%
     • Electric lighting rose from 35% to 68%
   • Growth in production of consumer goods
     • The concentration of population in urban areas was one of the reasons why it became possible for more people to acess electrical consumer goods
       • Bt 1930 85% of homes in the cities had access to electricity
     • The development in consumber goods was aided by technological advances
       • First synthetic plastic - containing electrical products
     • Vaccum cleaners owened by 30% of families in 1930
     • washing machines - 24%
     • fridges in 8%
   • Reasons for prosperity
     • Favourable Government policies
       • Coolidge believed in 'Free market'
         • A system that allows the economy to run itself with minimal government inference
       • Mellon (A banker) believed wealth filtered down to all classes in society
         • allow the rich to continue making money to invest in industry
           • industrial expansion mean more job oppoutnites
             • in turn meant more employment, more wage earners more consumption more expansion
       • Lassiez faire
         • gov did intervene in 4 main ways
           • 1. High tarriffs
             • Fordney Mcumber Act - 1922 raised tarriffs
               • cheaper to buy American goods than foreign
             • reduced level of foreign trade
           • 2. Tax reductions
             • mainly benefitted the wealthy
             • gov could reduce national debt
           • 3. Fewer regulations
             • Businesses left unhindered
             • No authority to stop child labour
             • 56 hour week common in the South
             • Low wage
           • 4. foreign policies
             • investors favoured profit over ethical concerns
     • Technical advances
       • Motor industry
     • Easy credit
       • By 1929 $7 bill worth of goods
         • 75% CARS 1/2 applicences
       • Led to debt
     • Advertising
       • Cinema
         • 17,000 by 1928
       • Radio
         • By 1929 618 stations

3. Increased racial tensions

   • Reasons
     • New Immigration
       • Reasons for New Immigration
         • Push factors
           • Poor living conditions at home
           • Escape the persecution
         • Pull factors
           • Lots of job oppotunites
           • Better living conditions
       • Result
         • Massive emigration
         • Americans were worried southern & eastern Europeans did not assimilate into US culture
         • increased fear - bought dangerous ideas with them
           • Communism
           • Anarchism
         • Americans feared they would take their jobs by working for lower wages
         • Influxed to citites
           • half Chicago population was foreign born
           • 80% of NYC
   • The KKK
     • Influence
       • Added glamour and purpose to humdrum lives
       • By 1925 - 5 million members
         • 100,000 followers by 1921
       • Reborn in 1915
     • WASP - opposed anyone 'submersive'
     • Collapse
       • David Stevenson
   • The Red Scare
     • Sacco & Vanzetti
       • Italian immagrants
         • Anarchists
         • All Italian car owners had to be reported
       • arrested for violent robberries in 1919&1920
         • Lied about possessing fireams
           • Did not admit anarchist veiws
             • Police took this as a 'consciousness' of guilt & arrested them
               • Trial
                 • Judge was openly prejudice
                   • 'I want those anarchist barstards hanged'
                 • 22/33 eyewitnesses said S&V not there
                 • Sentenced to death in 1921
                   • Executed in 1927
     • Palmer Raids
       • 6000 arrests - lead by Mitchell Palmer
         • He was a target for assasination
         • Exposed communist activity
         • Most released due to a lack of evidence
   • Results
     • Quota Act - 1921 - Annual number of immigrants that could enter the country was 3% of those already living in the country
     • Quota Act 1924 - 2%

4. Prohibiton

   • Why
     • Businessmen saw drink as inefficacy in the workplace
     • Women saw alcohol as a means by which men oppressed them
       • e.g. Rockerfeller & Heinz
   • Volstead act banned the manufacture, sale & transportation 1917
   • Failures
     • only 3,000 treasury agents
       • Paid a very low wage - bribed easily
         • 10% fined for corruption
     • USA has 18,700 miles of boarder
       • Bootlegging
         • Smuggling alcohol across the boarder - only 5% was intercepted
         • worth $215m a year
     • 1500 bars before prohibition - 32000 speakeasies in mid 1920s
     • Moonshine
       • Dangerous - wood poisoning
         • 30 people died in NY in 1 year
     • Increased crime - gangsters
       • Al Capone - $60m a year by 1927
       • 227 gang led murders in Chicago
       • Prohibition taught skills to criminals
       • Made big money - gangs had turf wars to control the supply of alcohol in the area
   • Successes
     • Rural areas supported the ban
       • Marked decline in small-town America
     • Promoted black musicians
     • Decrease in road traffic accidents