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
Annotations:
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