20-02-2024 Capitalism in the USA

Page 1: Title and Topic

• Title: Capitalism in the USA 1900 - 1940

• Level: Grade 11

• Date: 20/02/2024

Page 2: Introduction to Capitalism

• Overview of Capitalism:

  • Similar to communism in Russia but varied in approach in the USA.

  • Capitalism started during the Industrial Revolution in England at the end of the 18th century.

  • Spread from textile mills in Lancashire to the European continent and America.

• Development in America:

  • Late 18th century saw the establishment of textile mills in New England.

  • These mills initiated large-scale industrial techniques on the continent.

Page 3: The American Dream

• Key Question: How did the 1920s challenge Capitalism in the USA?

• Definition of the American Dream:

  • Protects individuals' opportunities to pursue their happiness.

  • Allows for personal economic prosperity regardless of caste, religion, or gender.

  • Discrimination persists, but laws protect the right to pursue a better life.

• James Truslow Adams' Perspective:

  • Linked the phrase in his book "Epic of America".

  • Described the American Dream as opportunity for improvement according to ability or achievement.

• Historical Changes:

  • Evolved definition of happiness, particularly in the Roaring 20s focused on materialism.

  • F. Scott Fitzgerald’s "The Great Gatsby" critiques material happiness:

    • Happiness based on greed is unattainable.

    • Stock Market Crash of 1929 confirmed these warnings.

Page 4: Exercise Questions

• 1.1.1: Role of the American government?

• 1.1.2: List three aspects that support achieving dreams in America.

• 1.1.3: Explain why the American Dream is appealing.

• 1.1.4: Interpret Fitzgerald’s quote on greed and happiness.

Page 5: Economic Boom of the 1920s

• Key Question: How did the 1920s challenge Capitalism in the USA?

• Source 1B: Overview of the economic boom from 1920-1929.

  • Known as the 'Roaring Twenties': characterized by noise, action, and prosperity.

  • Republican administrations (Harding, Coolidge, Hoover) promoted business through tariffs on foreign goods.

  • Increased tariffs made foreign goods expensive, encouraging American purchases.

  • Result: Significant increase in production and sales of American goods.

Page 6: The Motor Car Industry and Economic Growth

• Key Focus: The business boom in the motor car industry.

• Henry Ford’s Innovations:

  • Aimed to produce affordable cars for everyone, leading to mass production of the Model T Ford in 1909.

  • Price reduction strategy: Price dropped from $1200 in 1909 to $295 in 1928.

  • Production rate reached over one car per minute by late 1920s.

• Impact on the Economy:

  • Car production utilized 20% of American steel and large portions of rubber, plate glass, and leather.

  • Increased car production led to job creation in various sectors including oil and construction.

  • Resulting infrastructure growth: new roads, garages, gas stations, diners, and motels created additional jobs.

  • Workers’ wages spent on luxury goods like cars and vacuum cleaners illustrated consumerism.

Page 7: Exercise Questions (Continued)

• 1.2.1: Why was the 1920s called the 'Roaring Twenties'?

• 1.2.2: How did the tariff system boost America’s domestic economy?

• 1.2.3: What made the Model T Ford so popular in the 1920s?

• 1.2.4: Explain the car industry's role in America’s economic boom.