History Paper 1: Changing quality of life

Why did the US economy receive a boost during the FWW?

• It significantly increased demands on production

• capacity of the USA supplied to Britain and France for the first three years of the war and home consumption after 1917

• farming and industry boomed during World War one: many farms and factories introduced mechanisation to meet rising demands

Post-war depression and its impact

• New industrial machinery meant less jobs, causing rising unemployment

• farmers overproducing post World War one causing lower prices and reduced profit

Post war economy - influence on presidency

• Newly elected Republicans believed in Laissez Faire policies which did little to ease depression

• It was argued depression would right itself and it did

• Isolationist tariffs reduced exports but encouraged Americans to buy US goods

Taylorism

New management techniques called scientific management which encouraged payment of good wages and maintaining good working conditions so contented workers would produce more goods. Each task broken down into series of movements and workers trained in most effective way. Work best when workers stayed - Advised benefits for those who stayed a long time

Why did many people invest in the stock market in the 1920s?

• Price of shares in the new modernised industries rose rapidly

• Ordinary people found it appealing, not just the rich and banks

• Media raised awareness of money to be made

• Many saw it as a sure thing to get profit

Economic cycle in stock markets

buying on the margin:

• borrowing 90%

• Buy shares

• Rise in price

• Sold them

• Profit made

Affluence during the 1920s

• New management techniques encouraged paying good wages and good working conditions

• Federal policies: Republicans kept some wartime subsidies in place And cut business taxes to encourage consumers to buy American goods

• Hire purchase and loans: More people took out loans and encouraged to buy now and pay later

• 1929: Average consumer borrowed 10% of their annual income

• Changing industry meant more efficient mechanisation and a shift away from staple industries to consumer goods production

why did the boom turn to bust?

• government failed to regulate activity

• People taking out loans without paying them back

• Buying on the margin was risky

• Banks were bankrupted

• Not enough money to pay off loans

Why did so many businesses fail during the depression?

• people stopped buying

• Prices fell

• Reduced profits

• More businesses failed

Hoover’s response to the depression

• Republicans did very little

• Relied on voluntary action from businesses

• Belief in rugged individualism didn't fit scale of crisis

• Peter pushed for federal action but Republican Congress unwilling to agree

social impact of the depression

• extreme unemployment - 25%

• People lost homes if they couldn't pay mortgage

• Homelessness and poverty for many

Why was economic recovery a slow process?

• Hoover did very little

• FDR in government later, ran up huge government debts due to New Deal

• New Deal worked but progressed slowly

• Natural disasters hampered the 30s - Great Plains became Dust bowl

FDR - easing the depression

• closed all banks and had federal officials inspect and only reopen healthy banks

• Used federal agencies to create employment and help those struggling with loans

• 1937 Wagner-Steagall National Housing Act: Set up by Federal Housing Administration to oversee building of housing for low income families

• 2nd Agricultural Adjustment Act: Provided subsidies for farmers to produce less.

• Unemployment decreased from 24.9 in 1933 to 9.9% in 1941

How did the USA benefit from the war 1939-41?

• Massively expanded the economy

• when war broke out FDR shifted to war production to help allies

• when they joined the war in 1941, jobs were created in the factories and the military

Why wasn't there a post war depression following the Second World War?

• Industry easily transformed from war production to consumer goods

• increase in wages encouraged spending and increasing demand

• Post war baby boom significantly increased demand and would

• Demand for home produce increased and consumerism was patriotic

Impact of the Baby Boom?

• Increased demand and levels of consumerism

• This increased long term is the babies became teenagers etc

Impact of the Fair Deal

• Policies increased government spending as well as advanced welfare, education and housing

How was suburbia possible?

• Highways were built and factories and universities moved outside of the city

• Beam economy meant builders willing to invest in building them and running necessary facilities such as electric and water

• Economic boom. And baby be meant it was necessary to house more families

access to suburbia

• Primarily white people as Levitt wouldn't sell to black people - northern segregation

• suburbia exploded significantly in the northeast where Levitt was based

Federal policies to expand suburbia

• 1956 Highways Act: Forty one thousand miles of interstate highways connecting suburbs to cities

• Farm subsidies meant farmers did well

• Fair deal supported those who left military with loans for buying a house and medical care

• 1949 Housing Act: Slim clearance and building of 810,000 low income housing units

services and industries associated with growth of suburbia

• Consumer goods increased from 213 billion in 1945 to 284 billion by 1950

• Baby boom led to increase in demand for child centred goods with toy expenditure increasing from 1.6 billion in 1951 to two billion by 1961

How did consumerism lead to increased inflation?

• Many people are spending more on consumer goods

• however many weren’t from the usa

• new communist countries such as the ussr and China and previous enemies were trying to outproduce America leading to increased production in America

• decreased prices led to inflation

Why is it a challenge to curb inflation effectively?

• you have to intervene in market economy

• Raise taxes = government spend less

• Increase gov spending

• Increase money supply - helps inflation: Had to follow through and welfare measures prevented this

Why did America continuously increase the money supply?

• welfare spending at an all time high and wasn’t decreasing

• Vietnam cost lots of money

• 3 major crises - fuel shortages. 1974, fuel 4x higher than previous levels and didn’t return to normal

• Unsustainable level of inflation: Government spending, welfare spending and the Cold War

Why did the economy dive into a depression in the 1970s?

• Federal government struggled to cope with economic problems as welfare spending at an all time high

• 3 major crises, inc in 1973 and 1979

• 1974: Fuel was four times the price than previously and didn't return. People got rid of US cars for Japanese and European cars as they were smaller

• Growing stagflation inflation which became uncontrollable by 1974

little impact of government intervention

• Federal government struggled to cope with economic problems and welfare spending remained exceedingly high

• Political turbulence and Watergate leading to Nixon leaving the office

• Ford focused on ending Vietnam and pardoning Nixon leading to ineffective economic policy

• Carter’s team It included a catalogue of failures in dealing with stagflation and restoring the economy

• resorted to austerity by decreasing spending and increasing taxes to balance budget

• Carter failed to decrease homelessness and unemployment which soared

Link between public confidence and a successful economy

• People believe that the president is being effective when the economy is successful as their actions largely benefit them. Higher quality of living and a job and disposable income

• When the economy is failing, the public tend to suffer meaning they have less confidence in the executive

Economy - 1910s

• World War one boosted economy due to increasing production and supplying allies and themselves

• farming and industry boomed

• post war mechanisation meant fewer jobs causing increased unemployment

• post war depression due to farmers overproducing, decreasing prices

Economy - 1920s

• Affluence due to new management techniques, federal policies and hiring purchase loans.

• Also due to rise of share markets

• turn to bust due to unregulated activity with the Wall Street crash on the 29th of October 1929

Economy - 1930s

• USA fell into Great Depression and 25% unemployed meaning heavy poverty and meaning lost homes due to bank collapses

• Republicans fail to recover economy and progress with slow due to natural disasters

Economy - 1940s

• War meant USA massively expanded economy due to shift to production for allies

• created jobs in military production from 1941

• No post war depression As industry easily transformed to consumer goods

Economy - 1950s

• Age of extravagance due to significant wealth, despite occasional dips in the economy

• Rise of suburbia on outskirts of cities due to highways and willingness to invest in building

Economy - 1960s

• Decade of steady ups and downs

• high welfare and Cold War costed billions

• constant increase in money supply led to economic downturn

Economy - 1970s

• Federal government struggle to cope with economic problems such as stagflation

• Fuel crisis in nineteen seventy three that quadrupled prices in long term

• Stock relation reached fifteen percent and significant unemployment and homelessness

most significant factor for affluence and crisis

• Confidence In the government due to significant wealth and prosperity

• Policy was more likely to be passed which extended well further through suburbia

• Lack of confidence in the nineteen seventies meant the little meaningful policy was passed restricting Carter as to what he could do regarding the economy

• Limited in helping the economy due to political and economic factors

Impact of wartime industrialisation

• followed American civil war

• Economy greatly benefitted from war, selling ammunition and supplies to allies

• American investors loaned over 2bn to allies, due with interest post-war

economic factors in 1920s America

• pro-business philosophy under Republican presidents

• Committed to lower taxes, limited government, buy now, pay later mentality - boost economy

• Enhanced consumer demand, raising production, employment and profits

• Increased prosperity and visible consumer affluence superficial

‘man who builds a factory, builds a temple’ - impact of 1920s on American Dream

• Hoover, self made millionare, appt by Harding to be Sec of Commerce

• Hoover did all he could for business to regulate itself, free from gov restraint

• Secretary of the Treasury, Mellon ensured that taxes on the rich were as low as possible, to reinvest profits, generating universal employment for wealth to circulste downwards

1920s - social

• bursting with confidence and renewed isolationism

• Innocent in global affairs

• Growing financially richer and realising the latent potential of the nation

• Immense fortunes made due to exploiting of new and exciting cultures: Flappers, female fashion, radio and music, cinema and spectators

• Bull Market on the stock exchange

• Organised criminal cartels exploited the illicit alcohol phenomenon

• Age of consumerism, materialism and self fulfillment

• Constant purchasing sustained prosperity

• Mail order catalogue - ubiquitous symbol of search for economic betterment

• Mass production inspired by mass advertising and sustained by mass consumption

prosperity in the 1920s

• number of income millionaires grew from 65 in 1919 to 513 in 1929

• GDP rose from 72bn in 1919 to 104bn in 1929

• Economy grew by 5% a year

• Annual income grew from $672 in 1922 to $857 in 1929

• 1/4.5 Americans owned Ford Model T - easily affordable on hire purchase -$290

• 40% of homes had a radio

• 90-100m Americans visited cinemas weeks

• 1921: 5000 fridges manufactured

economic stability - 1920s

• little substance, speculation and credit

• Excessive borrowing, risky speculation, unprecedented confidence

• Crashed spectacularly with global impact

1950s economic stability

• built on granite

• Grew abundantly rich as the Arsenal for allied powers during WW2, remained practically untouched by war

• Wartime savings = $140bn

• Wartime rationing and the baby boom (50m people) created significant consumer demand

• Strong economic growth, new technology and industries, greatly restored confidence following depression

• Heavy defense spending initially positive as it led to full employment and high wages

• Highways act: Cost more gov spending than New Deal programmes

• NASA created in 1958 to promote new democratic imperialism'

• GI Bill - soldiers found employment after WWII

1950s economic growth

• GDP grew from $318bn in 1950 to $440bn in 1960

• Avg. family income $300 in 1947, but $5400 by 1959

• Began process of a wealth divide, exarcerbated by suburbia - levels of poverty, leading to LBJ’s great society

• Top 1% owned 19% of nation’s wealth in 1949, grew to 33% by 1960

• Bottom 20% owned 0.005%

Rise of suburbia

• 60m lived there by 1959

• Levittown success- monthly mortgage of $130 or buy a new house for $14k

• White flight led to decline in investment in inner cities- detriment of ethnic minority populations

• Suburban life drove rise in car ownership- 58m purchased during the decade - enterprise via motels and gas stations

• Gas-guzzling multi-coloured automobiles filled highways

• 5m TVs owned in 1950- grew to 48.5m by 1960

• Perfect opportunity for advertising consumer goods - adv. expenditure doubled from $5.5bn in 1950 to $10bn in 1960.

• Built on USA’s dormant might and greatness

good standard of living in 1920

• nice house/ roof over your head

• decent job and income to support family and buy stuff - often privately educated

• family

• consistent supply of food

• lower than today and relative

why did the criteria for a high standard of living constantly change?

• new necessities constantly developed as new tech developed: cars, radios, fridges and TVs.

• population increases - more standards of living shrunk, e.g. from farm to a condo

• economic situation: high during periods of prosperity (1950s), low during economic depression (1930s)

• media and commercialisation drives this

• war impacts this, e.g. Vietnam

• Healthcare determines s.o.living - not free

• leisure: access to spectator sports and increase in leisure activity

which parts of the USA had the highest living standards?

• urban areas

• mostly northern cities, e.g. NYC - Great Migration

• South West - San Francisco

why did living standards improve during the 1920s?

• improved economy

• ‘Roaring 20s’

• easy to access credit/Bull Market

which technologies became an essential part of life in the 1920s?

• cars - Model T became aspirational

• radio

• houses with running water and electricity - bath

how were the Republicans responsible for increasing living standards?

• aided it in short-term via laissez-faire and deregulation of saving and loan institutions

• decreased in long-term due to war

were most Americans living the American Dream during the 1920s?

• roof, job, food and family

• items: cars, radios, running water and electricity

• many couldn’t access this - especially ethnic minorities

• often limited to urban areas, primarily in North

• only 50% of homes had running water and 60% electricity

• many items - cars - expensive for working classes

which industries didn’t boom during the roaring 1920s?

• coal mining starts to decline due to new methods of power

• shipbuilding - prevalent commodities during WW1, no longer needed

• steel industry

how did living standards for African Americans compare to those of Whites?

• significant disparities on race

• Whites had higher life exp. of 48, compared to 33 for non-whites (1915)

• average salary for white man $1234 - over 2x higher than other races

how did gender influence living standards?

• limited access to education and jobs

• difficult to access good standard of living without a husband

• white men had highest paid jobs

which demographic had the best access to standard of living?

• white middle class men

• access to education, jobs and better housing

impact of wall st. crash on employment

• millions lost their jobs and businesses collapsed

• unemployment rate increases to 25%

• decreased living standards significantly

• people struggle due to no consistent disposable income

Hoovervilles

• shanty towns that sprung up on the outskirts of cities

• people unable to pay rent, unemployment, lack of welfare, no disposable income

• Central Park, New York City: Scores of homeless families camped out at the Great Lawn at Central Park, then an empty reservoir

• Seattle had eight Hoovervilles during the 1930s. Its largest Hooverville on the tidal flats adjacent to the Port of Seattle lasted from 1932 to 1941

• St. Louis in 1930 had the largest Hooverville in America. It consisted of four distinct sectors. St. Louis's racially integrated Hooverville depended upon private philanthropy, had an unofficial mayor, created its own churches and other social institutions, and remained a viable community until 1936, when the federal Works Progress Administration allocated slum clearance funds for the area.

how did the depression impact everybody’s standard of living?

• super rich families were less affected - old money, don’t feel it due to deep investments in property - insignificant

• abject poor had nothing to lose

• middle-class most impacted buying lots of shares and having savings

• 600k hispanics deported

• African-Americans had menial jobs, not especially impacted as many below poverty line

federal emergency relief act

• December 1935: FERA distributed over $3.1bn and employed over 20m people

• established federal emergency relief administration, grant-making agency authorised to distribute federal aid to states for relief

Works Progress Administration - May 1935

• replaced FERA, alphabet agency

• jobs for unemployed and built up infrastructure

• 8.5m jobs 1935-43, 3.3m in 1938

• provided mainly construction jobs: 620k miles of streets, over 10k bridges, airports and housing

• unemployment massively decreased during WW2

• annual budget = $1.3bn

Social Security Act

• start of US welfare state

• ensured USA responsible for: dependent children (child benefit), disability benefit (esp. for disabled children), state pensions for old people and unemployment benefit

• ensures people have dignity in living standards

medicare and education

• FDR often spoke about medicare - didn’t pass anything in 12yrs

• education: no policy on this - other priorities

• National Housing Act

• Rural electrification administration 10% to 90% of farms by 1945

why did living standards fall during the war?

• war time patriotism and conservation of goods

• encouraged to save money

• lack of goods - many consumer goods (cars, washing machines) not manufactured

• Rationing (1942): Gov introduced Gen. max. price regulation, freezing prices

• goods allocated via rationing: sugar, coffee, petrol, tyres

• decline in house building

why were people willing to accept some restrictions to living standards at the time?

• patriotism: willing to accept WW2, shift away from consumerism

• Propaganda: people encouraged to help war effort

why did prosperity increase, yet living standards stagnated?

• people encouraged by gov to save money, limiting increased standards

• war bonds: heavily encouraged by government to invest money in the war effort - raised $185bn, bought by 84m Americans - clear patriotism

how did the war lead to an increase in living standards long-term?

• consumerism boomed: shift away during WW2, created new things post-war

• better industry and infrastructure: goods production increased post-war

• post-war economic boom: public had more disposable income, bigger propensity and capacity to spend

did FDR’s presidency succeed in significantly increasing living standards?

• WPA provided 8.5m jobs

• began welfare state via SSA - benefits and pensions

post-war obsession with consumerism

• maintain high levels of spending: products regularly upgraded by manufacturers, consumers inclined to want latest model

• anti-communist as consumerism follows american way of life

• fulfils American Dream and fuels American way of life

• connects to popular culture

• TV big and mass-produced: 85% by 1960, power of advertising

who did tv ads target and why

• women and children - pester power

• spend most of time at home, especially in suburbia

link between increased consumerism and declining health

• more prolific ads = consumption of unhealthy food

• prominence of soft drinks/sweets and precooked menu - fat, sugar, salt

• USA one of biggest producers of cigarettes

how did the national census and ads alter perceptions of a high standard of living?

• gov use census stats about what % have a tv: peer pressure, inspired to be like their neighbour

• if they see people enjoying new products, feel inspired to buy it: increases standard of living

how does increasing prosperity have a beneficial effect on American society?

• opportunity for better standard of living

• advertising, prosperity and consumerism boosts the economy

• more demand for products - more research into improving them and technological development

• better employment and more disposable income

• improves confidence in presidency

how didn’t prosperity have a beneficial effect on American society?

• decline in state of health

• ads reinforce gender and racial stereotypes

• negative impact on environment - industrialisation, production, more cars

• creates a disposable world

• mass production makes it cheaper

• mid 60s: over 40% of non whites living below poverty line, not benefitting from it

• created wealth divide

teenage consumerism

• 1950: US affluence made teenagers prime target for expanding leisure industry, advertising and consumerism

• more disposable income: many had jobs, parents earnt more and this trickled down

• teenagers spent $10bn/yr - cars, entertainment, fashion, music, magazines, comics, cinemas, diners and bowling alleys

• gold mine for advertising and marketing industry

living standards for a typical middle-class suburban family

• many affluent middle class white families moved to suburbs - mid 1960s

• away from negativity, safe

• semirural life - better air quality and quality of life

• encourages 2 car family, feeding into consumerism

• church still important

• self contained - own schools, shopping malls and cinemas

• better living standards than in cities

why were living standards much lower in the inner cities?

• inner city housing rented by non-white Americans

• white flight to suburbia - cities became underfunded

• ghettoisation due to influx of immigrants who stayed

• houses became sublet rooms that weren’t repaired or renovated

• decline by neglect and poverty: areas, such as Bronx, Southside Chicago and Harlem notorious for crime and drug problems

• some councils neglected altogether with planned shrinkage to try and force people out

• over 40% below poverty line - $3000

Impact of JFK’s New Frontier plan on living standards

• challenged poverty

• civil rights

• equal pay act

• equality for women

Aim of the Great Society

• mission to fight poverty and remove civil inequality

• agency to take problem with budget over $960m

• states could draw from it for initiatives to help the poor

• improve and extend social welfare to cover more people

• welfare

Community Action programmes

• provide relief to poverty-stricken areas

• campaigned for funding, focusing on most pressing issues in areas, e.g. medical care or housing regeneration

• great society created society dependent on benefits and welfare

• local initiatives for those below poverty line

Was LBJ successful in his war on poverty?

• society dependent on benefits

• provided free school meals, medicare for older people and improved educational opportunities

• didn’t fully eradicate it

• due to costs of Vietnam, it was prioritised at the expense of welfare

Nixon’s policies to raise living standards

• dismantled great soc., introduced anti-poverty scheme - welfare to workfare - working tax credits

• education amendments act and funding for desegregation, helping fund inner city schools

• helped Native Americans via Indian Amendments act

• war on drugs

why were Ford and Carter unable to reverse declining living standards?

• Ford: worst economy in 40yrs, growing inflation and recession during tenure

• inflation and unemployment crippling and stagflation worsened - escalated via crisis with USSR

• raised and cut taxes with little success

• Carter’s resortion to austerity (cuts and taxes to balance budget) = unpopular

• measures to eradicate stagflation and restore ailing economy failed

main cause of declining living standards 1960-80

• oil crisis significantly increased fuel prices

• stagflation created high levels of unemployment and homelessness

• declining confidence unimportant

impact of energy crisis on US living standards

• car ownership widespread by 1970s

• fuel crisis in 1973: caused by US gov. supplying arms to Israel, causing many Arab nations part of OPEC refused to supply USA with oil

• massively increased fuel prices, petrol companies ran out of fuel

boom and bust in the 1920s

• post war mechanisation = unemployment

• overproduction of wheat led to falling prices

• decline in coal - 90-60%

• mass production of cars made them more accessible, as well as loans

• 1917-1929: increase of 19m car registrations

• scientific management streamlined production

• consumer debt 1920-28: increased from $3.3bn to $7.6bn

• 1929 - borrowed 10% of income

• price of shares rose rapidly

How did WW2 generate post-war affluence?

• production increased from $213bn (1945) to $284bn (1950)

• kept unemployment low

• baby boom increased demand for child centred goods - $1.6bn in 1959

• Farmers benefitted from farm subsidies and demands

• 1956 highways act facilitated 41k miles of highways

economic change in the USA

• circulation of money grew from $16.9bn to $36.9bn between 1961-8

• 1939-69, price index increased from 40 to over 90, most significantly 1943-7

• 1939-69, wages increased significantly from $1000 - $6500

• unemployment dropped massively by 1944, from 9.5m to 1m

• gov spending increased from $50bn to over $180bn between 1939-69

circumstances of living

• 1940: 15.2m people homeowners, 6.7m in 1920

• 1940: 78.7% of homes had electric light, 20.2% oil lamps

• 69.9% had running water and 60% had indoor toilet

• non-white people in inner-city rental housing more likely to have shared facilities or faulty plumbing

• 44% had a fridge

• spending on eating out increased from 12% to 15% of food money

key anti-poverty measures

• 1956: richest 1% owned 26% of wealth

• ]1968: production worker owned $6,370 a yr compared to $157k for COO of company

• $12,962 and $373k by 1978

• Great Society: war on poverty, independent industry with 130 staff, budget over $960m

• New Frontier policies not passed

• Social welfare programmes extended

• CAPS collected data of biggest problems and presented projects to resolve them

• Memphis - high infant mortality, worked with medical professions to be set up and provide care - used throughout country

• competition to gain funding created racial tensions and violence - Black and Hispanic communities in LA

• Nixon shifted focus to old, children and disabled people

• earned tax credit: poor working families with children received up to $400/yr

leisure activities during the roaring 20s

• dull, despite music and cinema advancements

• height of excitement trip to movies and sporting fixtures

• radio expanded music industry, esp. Jazz and RnB

• seaside resorts but limited w/out access to cars

• spectator sport - golf and tennis became popular

impact of prohibition and working hours on leisure opportunities

• prohibition: bars illegal, Speakeasies offered alcohol. Very popular place to gamble and drink - illegal until 1933

• most worked long hours, limiting time for leisure. Not much demand as most worked 6 days a week and went to church on sunday

• Fair labour standards act (1935): limits how much you can work and overtime if over, frees up saturdays, restricted maximum working week

growth of baseball 1920-40

• demand to watch and listen to games on radio

• NY Yankees stadium rebuilt in 1923 with capacity of 53k, later expanded to cope with demand

• Babe Ruth: greatest player ever, played for NY almost entire career - annual support 4x over 5yrs because of him

• some teams blocked radio broadcasts to increase ticket sales, forcing them to attend

• radio initially increased popularity

who attended sporting fixtures pre-1945?

• men - women expected to be housewife and look after kids

• not really children

why did FDR encourage sports to continue during depression and the SWW?

• to keep morale up, give something for people to get excited about and look forward to

• quality of matches decreased as many players enlisted in armed forces - women’s baseball league began to keep sport alive

why did some sports teams object to radio broadcasting?

• felt it took away revenues from ticket sales

• better for them for participants to attend

popular sports 1917-45

• boxing - 1920s/30s

• american football - began to rise in 20s

• tennis

• golf

• horse racing in the south

racial hypocrisy in sport

• many supported African-Americans due to contribution to success

• off pitch - people discriminated against them

• Jackie Robinson and Joe Perry valuable sportsmen - off pitch segregation still existed

Jackie Robinson

• played baseball for Brooklyn Dodgers 1947-56

• won MVP award - 1949, during time of segregation and extreme discrimination

• ignored race due to his talents

why was American Football popular post-war?

• games quicker and more exciting on TV

• every city and state had professional/college team to support, baseball couldn’t match

• college stars like Red Grange talk of nation

• success and plight became heartbeat of communities

• attracted families to attend

• extensive ad revenue that influenced society

• scholarships in colleges - opportunities to attract American Dream as it was big money

Superbowl

• started in 1967 as final match between 2 teams that won playoffs in NFC

• audiences of over $100m/yr and ad revenue over $300m