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22 Oct 2022
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America 1920-1973 Economic Boom and Inequality GCSE Notes
![CAUSES OF THE GOOM
Impact of wwl → Loaned money to Britain
+ allies [sold food tequipment] - created jobs
didn't join war till 1917
Electrif](/_next/image?url=https%3A%2F%2Fcontent-eu-central-1.knowunity.com%2FCONTENT%2FEUqZZBmDHyeSZmUqlibS_image_page_1.webp&w=2048&q=75)
Causes of the Economic Boom in 1920s America
The economic boom of the 1920s in America was driven by several key factors that contributed to unprecedented growth and prosperity. This period, often referred to as the "Roaring Twenties," saw significant advancements in various sectors of the economy.
Impact of World War I
World War I played a crucial role in setting the stage for America's economic success. The United States loaned money to Britain and its allies, and sold food and equipment to them, which created jobs and stimulated the economy. Importantly, America didn't join the war until 1917, allowing it to benefit economically without suffering the extensive damage experienced by European nations.
Highlight: The United States' late entry into World War I positioned it to emerge as a global economic powerhouse in the post-war period.
Electrification
The widespread adoption of electricity had a transformative impact on both homes and industries. Electrification provided clean, cheap, and effective power, leading to the proliferation of affordable appliances.
Example: The number of refrigerators in American homes increased dramatically, from just 1 in 1921 to 167 in 1929.
Innovation and New Technology
Technological advancements played a significant role in driving economic growth. Innovations such as concrete mixers and power shovels aided the building industry, while improvements in telephone production made them more affordable and accessible to a broader range of consumers.
Government Policy
The government's approach to taxation and regulation contributed to the economic boom. Key policies included:
- Low taxation for businesses and individuals
- High taxes on imported goods to protect domestic industries
- Reduced regulation of companies
Highlight: These policies created a favorable environment for business growth and expansion.
The Cycle of Prosperity
The economic boom was sustained by a self-reinforcing cycle of prosperity, which included:
- Mass Production: Assembly line production increased the speed and efficiency of factory work, leading to lower prices for goods.
- Hire Purchase: This system allowed consumers to buy goods on installment plans, making expensive items more accessible.
- Advertising: Mass production required mass selling, leading to the growth of commercial advertising through radio, posters, and cinema.
- Increased Spending: As more people could afford to buy goods, sales and profits increased, leading to higher wages and more jobs.
The Motor Industry
The automobile industry was a key driver of America's economic success during this period.
Highlight: By 1926, there were nearly 20 million cars on America's roads, employing about 500,000 workers.
The growth of the motor industry had far-reaching effects, boosting related industries such as glass, rubber, steel, and leather. It also spurred road-building projects and the development of suburbs.
Stock Market Boom
The stock market experienced significant growth during this period. Investors could make money through:
- Receiving dividends from company profits
- Selling shares for a higher price than they were purchased
- Buying shares "on the margin" using borrowed money from banks
Vocabulary: Buying on the margin refers to the practice of purchasing stocks with borrowed money, hoping to sell them at a higher price before the loan is due.
Those Missing Out on the Boom
Despite the overall prosperity, certain groups did not fully benefit from the economic boom:
- African-American workers faced discrimination and were often restricted to low-paying jobs.
- Rural areas experienced poverty as mechanization reduced the need for farm labor.
- Unskilled workers received very low wages, creating a significant class divide.
Highlight: The lower half of the population remained close to poverty, highlighting the uneven distribution of wealth during this period of overall economic growth.
Effects of the Boom
The economic boom had several lasting impacts on American society:
- Attitudes towards wealth changed nationally, with spending encouraged and prosperity desired by many.
- The stock market boom increased confidence and company profits.
- There was a surge in the purchase of mass-produced products and consumer goods.
- Advertising techniques, influenced by wartime propaganda, grew in popularity and effectiveness.
- The motor industry's development had significant social impacts, changing how Americans lived and traveled.
In conclusion, the economic boom of the 1920s in America was a complex phenomenon driven by multiple factors, resulting in unprecedented growth but also exacerbating existing social and economic inequalities.
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Stefan S
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This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
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Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
Best app on earth! no words because it’s too good
Thomas R
iOS user
Just amazing. Let's me revise 10x better, this app is a quick 10/10. I highly recommend it to anyone. I can watch and search for notes. I can save them in the subject folder. I can revise it any time when I come back. If you haven't tried this app, you're really missing out.
Basil
Android user
This app has made me feel so much more confident in my exam prep, not only through boosting my own self confidence through the features that allow you to connect with others and feel less alone, but also through the way the app itself is centred around making you feel better. It is easy to navigate, fun to use, and helpful to anyone struggling in absolutely any way.
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
very reliable app to help and grow your ideas of Maths, English and other related topics in your works. please use this app if your struggling in areas, this app is key for that. wish I'd of done a review before. and it's also free so don't worry about that.
Rohan U
Android user
I know a lot of apps use fake accounts to boost their reviews but this app deserves it all. Originally I was getting 4 in my English exams and this time I got a grade 7. I didn’t even know about this app three days until the exam and it has helped A LOT. Please actually trust me and use it as I’m sure you too will see developments.
Xander S
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH 😍😁😲🤑💗✨🎀😮
Elisha
iOS user
This apps acc the goat. I find revision so boring but this app makes it so easy to organize it all and then you can ask the freeeee ai to test yourself so good and you can easily upload your own stuff. highly recommend as someone taking mocks now
Paul T
iOS user
The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.
Stefan S
iOS user
This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
Android user
Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
Best app on earth! no words because it’s too good
Thomas R
iOS user
Just amazing. Let's me revise 10x better, this app is a quick 10/10. I highly recommend it to anyone. I can watch and search for notes. I can save them in the subject folder. I can revise it any time when I come back. If you haven't tried this app, you're really missing out.
Basil
Android user
This app has made me feel so much more confident in my exam prep, not only through boosting my own self confidence through the features that allow you to connect with others and feel less alone, but also through the way the app itself is centred around making you feel better. It is easy to navigate, fun to use, and helpful to anyone struggling in absolutely any way.
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
very reliable app to help and grow your ideas of Maths, English and other related topics in your works. please use this app if your struggling in areas, this app is key for that. wish I'd of done a review before. and it's also free so don't worry about that.
Rohan U
Android user
I know a lot of apps use fake accounts to boost their reviews but this app deserves it all. Originally I was getting 4 in my English exams and this time I got a grade 7. I didn’t even know about this app three days until the exam and it has helped A LOT. Please actually trust me and use it as I’m sure you too will see developments.
Xander S
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH 😍😁😲🤑💗✨🎀😮
Elisha
iOS user
This apps acc the goat. I find revision so boring but this app makes it so easy to organize it all and then you can ask the freeeee ai to test yourself so good and you can easily upload your own stuff. highly recommend as someone taking mocks now
Paul T
iOS user
America 1920-1973 Economic Boom and Inequality GCSE Notes
The economic boom of the 1920s in America was a period of unprecedented growth and prosperity. This era, often referred to as the "Roaring Twenties," saw significant advancements in technology, industry, and consumer culture. The causes of the boomwere... Show more
Causes of the Economic Boom in 1920s America
The economic boom of the 1920s in America was driven by several key factors that contributed to unprecedented growth and prosperity. This period, often referred to as the "Roaring Twenties," saw significant advancements in various sectors of the economy.
Impact of World War I
World War I played a crucial role in setting the stage for America's economic success. The United States loaned money to Britain and its allies, and sold food and equipment to them, which created jobs and stimulated the economy. Importantly, America didn't join the war until 1917, allowing it to benefit economically without suffering the extensive damage experienced by European nations.
Highlight: The United States' late entry into World War I positioned it to emerge as a global economic powerhouse in the post-war period.
Electrification
The widespread adoption of electricity had a transformative impact on both homes and industries. Electrification provided clean, cheap, and effective power, leading to the proliferation of affordable appliances.
Example: The number of refrigerators in American homes increased dramatically, from just 1 in 1921 to 167 in 1929.
Innovation and New Technology
Technological advancements played a significant role in driving economic growth. Innovations such as concrete mixers and power shovels aided the building industry, while improvements in telephone production made them more affordable and accessible to a broader range of consumers.
Government Policy
The government's approach to taxation and regulation contributed to the economic boom. Key policies included:
- Low taxation for businesses and individuals
- High taxes on imported goods to protect domestic industries
- Reduced regulation of companies
Highlight: These policies created a favorable environment for business growth and expansion.
The Cycle of Prosperity
The economic boom was sustained by a self-reinforcing cycle of prosperity, which included:
- Mass Production: Assembly line production increased the speed and efficiency of factory work, leading to lower prices for goods.
- Hire Purchase: This system allowed consumers to buy goods on installment plans, making expensive items more accessible.
- Advertising: Mass production required mass selling, leading to the growth of commercial advertising through radio, posters, and cinema.
- Increased Spending: As more people could afford to buy goods, sales and profits increased, leading to higher wages and more jobs.
The Motor Industry
The automobile industry was a key driver of America's economic success during this period.
Highlight: By 1926, there were nearly 20 million cars on America's roads, employing about 500,000 workers.
The growth of the motor industry had far-reaching effects, boosting related industries such as glass, rubber, steel, and leather. It also spurred road-building projects and the development of suburbs.
Stock Market Boom
The stock market experienced significant growth during this period. Investors could make money through:
- Receiving dividends from company profits
- Selling shares for a higher price than they were purchased
- Buying shares "on the margin" using borrowed money from banks
Vocabulary: Buying on the margin refers to the practice of purchasing stocks with borrowed money, hoping to sell them at a higher price before the loan is due.
Those Missing Out on the Boom
Despite the overall prosperity, certain groups did not fully benefit from the economic boom:
- African-American workers faced discrimination and were often restricted to low-paying jobs.
- Rural areas experienced poverty as mechanization reduced the need for farm labor.
- Unskilled workers received very low wages, creating a significant class divide.
Highlight: The lower half of the population remained close to poverty, highlighting the uneven distribution of wealth during this period of overall economic growth.
Effects of the Boom
The economic boom had several lasting impacts on American society:
- Attitudes towards wealth changed nationally, with spending encouraged and prosperity desired by many.
- The stock market boom increased confidence and company profits.
- There was a surge in the purchase of mass-produced products and consumer goods.
- Advertising techniques, influenced by wartime propaganda, grew in popularity and effectiveness.
- The motor industry's development had significant social impacts, changing how Americans lived and traveled.
In conclusion, the economic boom of the 1920s in America was a complex phenomenon driven by multiple factors, resulting in unprecedented growth but also exacerbating existing social and economic inequalities.
Can't find what you're looking for? Explore other subjects.
Students love us — and so will you.
4.9/5
App Store
4.8/5
Google Play
The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.
Stefan S
iOS user
This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
Android user
Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
Best app on earth! no words because it’s too good
Thomas R
iOS user
Just amazing. Let's me revise 10x better, this app is a quick 10/10. I highly recommend it to anyone. I can watch and search for notes. I can save them in the subject folder. I can revise it any time when I come back. If you haven't tried this app, you're really missing out.
Basil
Android user
This app has made me feel so much more confident in my exam prep, not only through boosting my own self confidence through the features that allow you to connect with others and feel less alone, but also through the way the app itself is centred around making you feel better. It is easy to navigate, fun to use, and helpful to anyone struggling in absolutely any way.
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
very reliable app to help and grow your ideas of Maths, English and other related topics in your works. please use this app if your struggling in areas, this app is key for that. wish I'd of done a review before. and it's also free so don't worry about that.
Rohan U
Android user
I know a lot of apps use fake accounts to boost their reviews but this app deserves it all. Originally I was getting 4 in my English exams and this time I got a grade 7. I didn’t even know about this app three days until the exam and it has helped A LOT. Please actually trust me and use it as I’m sure you too will see developments.
Xander S
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH 😍😁😲🤑💗✨🎀😮
Elisha
iOS user
This apps acc the goat. I find revision so boring but this app makes it so easy to organize it all and then you can ask the freeeee ai to test yourself so good and you can easily upload your own stuff. highly recommend as someone taking mocks now
Paul T
iOS user
The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.
Stefan S
iOS user
This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
Android user
Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
Best app on earth! no words because it’s too good
Thomas R
iOS user
Just amazing. Let's me revise 10x better, this app is a quick 10/10. I highly recommend it to anyone. I can watch and search for notes. I can save them in the subject folder. I can revise it any time when I come back. If you haven't tried this app, you're really missing out.
Basil
Android user
This app has made me feel so much more confident in my exam prep, not only through boosting my own self confidence through the features that allow you to connect with others and feel less alone, but also through the way the app itself is centred around making you feel better. It is easy to navigate, fun to use, and helpful to anyone struggling in absolutely any way.
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
very reliable app to help and grow your ideas of Maths, English and other related topics in your works. please use this app if your struggling in areas, this app is key for that. wish I'd of done a review before. and it's also free so don't worry about that.
Rohan U
Android user
I know a lot of apps use fake accounts to boost their reviews but this app deserves it all. Originally I was getting 4 in my English exams and this time I got a grade 7. I didn’t even know about this app three days until the exam and it has helped A LOT. Please actually trust me and use it as I’m sure you too will see developments.
Xander S
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH 😍😁😲🤑💗✨🎀😮
Elisha
iOS user
This apps acc the goat. I find revision so boring but this app makes it so easy to organize it all and then you can ask the freeeee ai to test yourself so good and you can easily upload your own stuff. highly recommend as someone taking mocks now
Paul T
iOS user