this was when there were many workers but they all just did something very small to help. this made work easy and fast.
it helped other industries e.g telephone, radios, hoovers and fridges.
1.1.1 how did this help America?
it created more jobs and helped other industries not only the car.
tourism as sparked off. the first ever motels were seen in this period.
1.2 Henry Ford
Henry ford changed America.
a car used to cost 3000 dollars he made the price decrease to 298. he said his cars for the great multitude.
it took 3 minutes to produce 1 car. this was because there was only 4 basic parts. over 15 million were sold.
50,000 unskilled workers. they worked 8 hour shifts. wages were low and speed was high- assembly line.
the stock market
during ww1 people bought share and after the war people thought about doing the same. they saw rich making money and thought that thought that they were missing out on something so they invested in businesses such the radio and fridge.
the poorer people bought on the margin. this meant getting a loan from the bank, there was a lot of confidence in America economy. during the 1920s share prices rose quickly. prices went up.
this resulted in more jobs, factories and overall more wealth.
1.4 The cycle of prosperty
because of the laissiez faire policy employers were allowed to do anything they wanted. they were even allowed to break strikes with violence.
they were allowed to make hours long and low wages.
taxes were lowered for rich businessmen
people earning over 100,000 didn't have to pay taxes.
interests rates were lowered. they easy money polivy. the rich became even richer
1.4.1 Hire purchase
if people didn't have money, the banks loaned it off. people began to live on credit, therefore people owned a lot of money to the bank. when you bought something you paid a small sum every week-credit.
the demand for goods happened because of advertising
mail orders, posters, radios and cinema all helped with this advertising.
1.4.3 Cinema and Jazz
the war cause unemployment. over 100,000 soldiers had no job to go to. farmers made profits during ww1. they sold to GB, france. when overproduced prices dropped and many went bankrupt. 4 million went on strike because of poor and lack of jobs.
soldiers returned from the war and told horror stories.
radical groups blamed immigrants on America's problems. this lead tot he Red Scare.(communism).
there were 200 different nationalities so they didn't feel it was right to fight around the world.
society was fragmented, America felt they should concentrate on their own problems.
ww1 made people question whether or not they wanted to help other countries.
Woodrow Wilson wanted to be more involved in the league of nations and the 14 points peace plan...he believed in idealism.
warren Harding wanted America to return to normalcy
he was supported by republicans such as henry cabot lodge
Harding won the election
2.4 Consequences of Isolationism
before, there was a free market. Isolationism brought with it "Protectionist Policies". this protected businessmen in America.
taxis were lowered for business men.
they also started a tariff policy, this is when they raise the amount of money other countries had to pay to sell their goods in America.
before the isolationism the USA had an open door policy and resultantly had over 100 different nationalities.
isolationism divided society as it created tension and groups against immigrants such as the kkk.
during the red scare people were deported if they were thought to be communist.
Italians lived in ghettos. this increased unemployment and crime. people turned against them. this divided society.
sacco and vanzetti were 2 italian immigrants that were executed with no proof of them committing any crime.
gov changed to Republican
woodrow wilson had a stroke on the election day.
warren harding said the opposite, which is why he won.
his ideas were as follows:
ignore the problems of the world