The Economy In The 1920s
The Economy in the 1920’s
Why did the USA experience an economic boom in the 1920’s? (6)
There were many contributions to the economic boom in the USA in the 1920’s, one important contribution was the government’s policy of Laissez-Faire, which meant ‘let it be’. Republican presidents such as Harding did not interfere with the economy, and encouraged growth by low taxes and tariffs. Another significant addition to the boom was the assembly line, designed by Henry Ford. This encouraged mass production and made goods easier and cheaper to manufacture. Credit also encouraged the economic boom in the USA, this meant people could buy goods they wanted even if they didn’t have the money. They were able to pay the money back in instalments with interest. The position of the USA during and after WW1 benefited the economy greatly as the USA fought away from home meaning no damage costs, they sold goods to their allies such as electricity and ammunition. They also gave loans to their allies which they had to pay back after the war. The advertising industry brought in a lot of money in the 1920’s, it encouraged people to buy goods and made them want things they didn’t know they wanted. Higher taxes were also placed on goods from other countries, encouraging people to buy American made products as they were cheaper, therefore boosting the economy.
How did the motor car industry affect the American economy in the 1920’s? (4)
The demand for the cars in the 1920’s was massive. Millions of people purchased cars, especially the younger generation. The car gave them a sense of freedom, as they could go wherever they wanted, whenever they wanted. The car industry also boosted business for a number of other industries, such as roads, garages and ancillary. The car was also thought to boost crime, people said this was an easy getaway for criminals. The car was also reasonably cheap, the Ford Model T was particularly popular as it was very cheap. This was because it was always the
Why did the USA experience an economic boom in the 1920’s? (6)
There were many contributions to the economic boom in the USA in the 1920’s, one important contribution was the government’s policy of Laissez-Faire, which meant ‘let it be’. Republican presidents such as Harding did not interfere with the economy, and encouraged growth by low taxes and tariffs. Another significant addition to the boom was the assembly line, designed by Henry Ford. This encouraged mass production and made goods easier and cheaper to manufacture. Credit also encouraged the economic boom in the USA, this meant people could buy goods they wanted even if they didn’t have the money. They were able to pay the money back in instalments with interest. The position of the USA during and after WW1 benefited the economy greatly as the USA fought away from home meaning no damage costs, they sold goods to their allies such as electricity and ammunition. They also gave loans to their allies which they had to pay back after the war. The advertising industry brought in a lot of money in the 1920’s, it encouraged people to buy goods and made them want things they didn’t know they wanted. Higher taxes were also placed on goods from other countries, encouraging people to buy American made products as they were cheaper, therefore boosting the economy.
How did the motor car industry affect the American economy in the 1920’s? (4)
The demand for the cars in the 1920’s was massive. Millions of people purchased cars, especially the younger generation. The car gave them a sense of freedom, as they could go wherever they wanted, whenever they wanted. The car industry also boosted business for a number of other industries, such as roads, garages and ancillary. The car was also thought to boost crime, people said this was an easy getaway for criminals. The car was also reasonably cheap, the Ford Model T was particularly popular as it was very cheap. This was because it was always the