USA Chapter 4

What happened for farmers during the war

They were encouraged to produce more wheat and were given subsidies

What did some farmers do as a consequence for increased production during the war

Took out loans to buy machinery and farmland

What happened to the farmers after the war had ended

They produced too much wheat and prices fell. Some went bankrupt.

What also happened to cotton farmers?

They were affected by the boll weevil

What was the boll weevil

A beetle that eats young cotton plants. Led to a 34% drop in production by 1921

What happened to the Coal Industry in 1900s

1930: 60% decrease from 1900

What effect did Isolationist Tariffs have on goods?

Led to similar tariffs put on the US. Led to people being encouraged to “Buy American”

What was Mass Production

A technique of breaking down production into a series of steps with each worker responsible for a step

What was the most effective example of Mass Production

Henry Ford’s factories

Why were Mass Produced products more affordable

Produced more quickly and cheaply

How many passenger cars in 1917 compared to 1929

1917: 4,727,468

1929: 23,060,421

What was the knock on effect from Mass Production

Increased production of raw materials needed to make the product

Why was the Ford Model T becoming more affordable specifically?

Production was streamlined, only produced one type of car

What did the price decrease from in 1914 to 1924 for a Ford Model T

1914: $825

1924: $260

What was the economic boom driven by?

Consumer Spending

What new management style did some employers start to use

Scientific Management Ideas

How did Scientific Management Ideas work

Each task is broken down into a series of movements, the worker is then trained in the best way to do that task

What did Scientific Management Ideas lead to in the work place

Increased wages, good working conditions, benefits for those who worked longer

What are some federal policies that helped the economic boom

Kept some wartime subsidies for farmers

Cut taxes for businesses to increase “Buying American”

What is Hire Purchase

Paying companies for goods in a series of fixed payments

What happened as the sense of prosperity rose in the 1920s

More people bought homes and farms on mortgages

Banks were more eager to lend money

What did consumer debt rise from in 1920 to 1929

1920: $3.3 billion

1929: $7.6 billion

How many homes had electricity in 1917 compared to 1930

1917: 7,889,000

1930: 24,555,732

What is a Dividend

A regular payment made by companies to their shareholders

What is a Bull Market

When share prices rise and people expect this to continue

What is Buying on the Margin

Buying shares with borrowed money to sell quickly to profit

What is a Bear Market

When the price of shares falls and people expect the fall to continue

In 1929 what caused the Wall Street Crash

1. Demand for consumer products decreased.

2. Companies did not stop production.

3. Unemployment rose.

4. Investors got cold feet and began to sell rapidly.

5. Media stirred that a crash was coming.

6. Everyone began to rapidly sell

What happened as businesses and banks went bust following the WSC in 1929

Unemployment rose

Many couldn’t afford their mortgage payments and lost their homes

What was Roosevelt’s first action as president

To close all banks and have FED inspect and reopen “healthy banks”

In 1937 what was setup to help with slum clearance

Wagner-Steagall Housing Act set up Federal Housing Administration

What helped the USA from the depression

The move to war production after World War 2 broke out

What did production from in 1945 to in 1950

1945: $213 billion

1950: $284 billion

What did the business boom post war encourage employers to do

Expand workforces

Increase wages

What was the post war “Baby-Boom”

Fuelled by men returning from war and wanting to settle down

When were the 3 highest years of the “Baby-Boom”

1956-1958

What did nappy sales increase from in 1947 and to in 1957

1947: $32 million

1957: $50 million

What did toy sales increase from in 1959 and to in 1961

1959: $1.6 billion

1961: $2 billion

What did the GI Bill provide for veterans

Higher Education or Training

Where did factories, colleges and universities move to.

Outside cities where there was more land

Who funded the building of highways and houses

The government (1956 Highways Act built 41,000 miles of highways)

What did the Levitt Company do?

Specialised in mass-produced, pre-fabricated houses

Who did Levitt refuse to sell to?

Black Americans

By the 1950s what was happening to America’s place in world markets

They were losing their place as the country of technological innovation

What was draining government finances in the 1960s

The Vietnam War

What did the 1944 Brenton Woods agreement do

Tie the US Dollar to the gold reserves

What is Stagflation

When business stops expanding and stagnates while inflation rises

What is the Consumer Price Index

An index that shows how the cost of basic necessities varies

What happened to workers whose wages were tied to the Consumer Price Index

Their incomes were in line with inflation

What was the USA’s share of the world’s exports in 1953 compared with 1963 and 1973

1953: 29%

1963: 17%

1973: 13%

What happened after the Vietnam War ended

Government cut spending on the war.

Veterans returning from war added to the unemployment and a drain to social and medical benefits

When were the 2 fuel crisis

1973

1979

What is OPEC

Organization of Petroleum Exporting Countries

What did OPEC do to oil prices in 1973

Raised them by 70%

By 1974 what were the effects from OPEC on the price of oil

It was 4x higher and prices never returned to earlier levels

How long did the fuel shortage last in 1979

May to July

What effects did inflation have on the USA in the 1970s

A depression set in. Unemployment rose and people were scared to spend money

What was the rise in unemployment from 1978 to 1979

1978: 5.8%

1979: 7.1%

What did Carter say the crisis the US was facing was?

A confidence crisis

What did Home Ownership and Renting increase to in 1940 from 1920

1920: 6,700,000 (Owned) | 12,900,000 (Rented)

1940: 15,200,000 (Owned) | 19,600,000 (Rented)

In 1940 what % had an indoor flushing toilet

59\.7%

In 1940 what % had running water in the house

69\.9%

In 1940 what % had a bath or shower

56\.2%

In 1940 what % had electric lights

78\.7%

In 1940 what % had relied on oil lamps

20\.2%

In 1940 what % cooked by gas

48\.8%

In 1940 what % had cooked by electricity

5\.4%

In 1940 what % had central heating

42%

In 1940 what % had an electric fridge

44\.1%

In 1940 what % had a radio

82\.8%

By 1929 what percentage of goods were sold in retail stores

21\.9%

What was the first major chain store

J.C Penney

In 1930 people spent what % of their income on food

23\.9%

In 1930 people spent what % of their food on eating out

13\.4%

In 1933 people spent what % of their income on food

25\.9%

In 1933 people spent what % of their food on eating out

12\.9%

In 1940 people spent what % of their income on food

21\.1%

In 1940 people spent what % of their food on eating out

15\.1%

What did Roosevelt’s Rural Electrification Administration (1935) do

To get electricity and therefore radio to rural areas

How many power lines did the REA run in 1939

100,000 miles

In the 1930s what happened to the death rates from Smallpox, Diphtheria, Polio ect.

Dropped steadily with an exception in the early 1930s

How much did the government spend on healthcare in 1917 compared to 1930 and 1940

1917: $3,100,000

1930: $11,000,000

1940: $32,700,000

How many children aged 14-17 were in school in 1917 compared to 1929 and 1940

1917: 27.1%

1929: 51.5%

1940: 73%

What was the yearly wage of a farm worker

$298.32 /yr

What happened to consumer spending as a result of WW2

It reduced as industry shifted to the War

How did the American Way change with the War

It was now not the American Way to consume but rather to shrimp and save

What happened after the end of the war

Industry returned rapidly to the production of peacetime goods.

What happened as a result of the post war economic boom

A burst of consumerism that made the consumerism of the 1920s insignificant

What did manufacturers realise about their goods

Constantly updating their goods made people buy more often

What happened to the quality of products post WW2

They were made less sturdy, also made to wear out quickly so that they would have to be replaced more often

How much was a TV in 1948

$200

Where was the only place TVs in 1948 could get reception

New York

What percentage of homes had TVs in:

1950, 1955, 1960

1950: 9%

1955: 65%

1960: 80%

How many broadcasting stations were there in:

1948, 1954

1948: 16

1954: 354

What happened as more people stayed home instead of going out

TV Dinners became popular

What helped with the growth of the toy industy

Developments in the plastic industry

How did advertising to children develop

Products aimed at children were being advertised around children’s shows and radio

What power did children have that advertisers and manufacturers like

Pester-Power

What other group was a target for “Pester Power”

Women

What were women the major targets for with advertsiing

Labour-Saving devices

Domestic shopping