Economic Boom

How did natural resources and immigration cause the economic boom?

• Car industry benefited from raw materials (rubber, leather, glass)

• Natural resources were accessible to the US and therefore they were the foundations for economic growth

• Immigration provided a continuous supply of new immigrants in the years before WW1, especially China, Japan, Russia —> provided lot’s of cheap labourers

How did the impact of WW1 cause the economic boom?

• 1918 - America = world’s leading economy

• WW1 - Europe is so stripped of its' economy and resources so US manufacturers and farmers took over the European overseas market

• —> European countries bought many of the US supplies and the US agriculture industry thrived

How did electrification cause the economic boom?

• 1912 - 16% of Americans live in electrified houses

• 1927 - 63%

• Oil and gas usage doubles

• Electricity provides a more reliable, efficient and flexible form of power for factories to mass produce products faster, making even more money

• 1927 - General electric developed the 1st “motor-top” unit (1st fridge in the USA)

How did mass production cause the economic boom?

• 1913 - Henry Ford developed the Assembly line = much more efficient way of producing products

• 1920 - Ford factory was producing a car every 10 seconds

• Ford introduced 3-shift-system

• Allowed Ford to bring his prices down from $850 (1914) to $295 (1926) —> cars are no longer only for rich people

• 1929 - no. of cars increases from 7.5 million to 27 million - this allows for people to travel and opens up jobs in the tourism industry

How did advertising and consumerism cause the economic boom?

• Between 1923 and 1929 - average wage rose by about 8% —> this was enough money for some workers to buy (on hire purchase often) consumer products and luxuries

• Firms realised the potential of adverts for increasing sales and profits —> radios and cinemas promoted this

• USA was the 1st country to have a supermarket (Piggly Wiggly introduced by Clarence Sanders)

How did finance and hire purchase cause the economic boom?

• Hire purchase made it easier for people to buy goods, even when they didn’t have enough cash to pay immediately and goods are paid for in installments which allowed consumer goods to seem more affordable

• ½ the goods bought in the 1920s were bought on hire purchase

• Growing demand for these consumer goods caused mass production to increase, increasing the wages of workers, and therefore those workers can then buy more consumer goods - links to cycle of prosperity

How did republican government policies cause the economic boom?

• Laissez-faire - leave things alone meaning that the gov. only helps with business when they’re asked to

• Little government regulation allows businesses to compete with eachother to invest and expand

• Isolationism (example) - refusal to join the league of nations meant that America avoided expensive overseas commitment

How did confidence cause the economic boom?

• Americans had high confidence in stock markets as they kept rising, therefore people could invest in these companies

What was the nickname for Henry Fords car?

Tin Lizzie

How much did a Ford cost in 1909?

$1200

How much did a Ford cost in 1928?

$295

How many cars was Ford producing per minute in 1929?

More than 1 car a minute

Why was Ford able to sell cars for such a cheap price?

• Because his cars were mass produced and STANDARDISED

Describe the cycle of prosperity

• Mass production (supported by standardisation) leads to increased (car) sales

• More standardised parts are needed which creates more jobs in other industries

• More raw materials (found by people with jobs)

• Employment means that these people can afford a car and consumer goods

• Oil industry booms (cars need oil)

• Roads are built

• More jobs are created in tourism industries such as diners, motels and gas stations

When was the movie industry established?

• 1910

• more than 8,000 cinemas

How many cinemas in 1926 and 1930?

• 1926 - 17,000

• 1930 - 303,000

True or false: movies always had sound

• False: Until 1927 movies were silent but often accompanied by live musicians and sometimes sound effects or commentary

How did the Roxy Theatre attract more people?

• it could seat 6,000 people

• pianos were replaced with organs or even full orchestras

• seats were very comfortable

What was the annual output of films in the 1920s?

• about 800 films (a year)

Name 5 movies stars in the 1920s

• Mary Pickford

• Gloria Swanson

• Charlie Chaplin

• Rudolph Valentino

What was special about Rudolph Valentino?

• He was the 1st male star to be sold on s3x sold tickets

• He died in 1926

• Over 100,000 fans lined the streets during his funeral and several people killed themselves

What was a talkie?

• A name for movies that had motion synchronised with sound

When was the 1st talkie released?

• 1927 - “The Jazz Singer” was released

What was the 1st film company to experiment with sound?

• Warner Brothers - then other companies followed/copied

How many cinema tickets were sold per week in 1930?

• More than 1 million (per week)

What was the 1st film shot in Hollywood area?

• “In Old California” (1910)

Name 4 major film companies

• Warner Brothers

• Paramount

• RKO

• Columbia

• (They all had studios in Hollywood)

Why were some people against the film industry?

• Some people believed that movies were lowering the morals of American Soc.

• Many Americans blamed Hollywood for the blanat use of s3x symbols