Causes of the Economic Boom in America in the sass’s Roaring Twenties: 1920-29 Time of noise, lively action and economic prosperity WWW was good for American business: Factory production had risen sharply Meet demands of the war Capture markets that used to be dominated by Europe When war was over, countries still bought from America Republican Government Presidents Harding, Coolidge and Hoover: Help American business by increasing taxes on foreign goods Forgone- Encumber Tariff Act 1922 Encouraged Americans to buy American goods Led to a boom or an increase in the amount of goods being made and sold by American business Key Points
America’s economy recovered quickly after WWW The government was Republican and favored ‘big business’ After the war, the government followed a policy of isolationism and focused on internal affairs By the mid-asses the economy was booming Factors leading up to the Boom: US industry had been boosted by the war Republican government’s policy of laissez fairer Protectionism- import duties raised (1922) Mass production – cars, radios, refrigerators etc. Hire purchase- people could buy on credit. Massive consumer spending. Case Study The greatest business boom took place in the motor car industry Three big car producers:
Ford, Chrysler and General Motors Henry Ford set out to build a car that everyone could afford. Mass-producing his first car 1909 Was slow, ugly and difficult to drive Was still America’s best-selling car for the next 18 years Price never increased only ever dropped $tent 1909 $295 in 1928 BY the end to the asses Ford was producing more than one car per minute Henry ford was able to sell cars more cheaply because they were mass-produced. Every part was standardized Only one color One engine size available Produced large numbers of cars using an assembly line Needed fewer workers Cut the cost of paying wages
