the changing quality of life
1917-80
Impact of boom, bust and recovery:
- WWI created a post-war depression
- Wheat farmers made a profit in WW1 but prices fell due to overproduction and
also farmers producing more to cover loans - led to no profit, unemployment and
economic hardship
- Coal industry declining due to 1919/1920 strikes and the popularity of other
industries which led to unemployment and economic decline
- Due to isolationism, Republicans placed tariffs on products but in return foreign
countries placed tariffs on US goods leading to unproductive trade and
overproduction
- 1920s economic boom
- Fordney-McCumber Tariff Act favoured American goods and didn’t place
regulations on industry. The Federal Highway Act 1921 constructed more roads
for better movement of trade
- Mass production techniques introduced such as Ford producing cars in 10
seconds in 1925 leading to cars selling more and quicker. Ford Model T cost
$295 in 1925 but was $950 in 1914
- Credit became increasingly popular especially with mortgages, by 1929 people
borrowed 10% of their income and $7 million worth of goods was sold on credit
including 75% of cars and 50% of household appliances
- Electricity was the new power source; from 1917-30, the homes and businesses
working on electricity increased from 7-24 million
- Great Depression origin
- Fordney McCumber Tariff Act and Emergency Tariff Act did nothing for
overproduction
, - 500 banks failed annually in 1920s and 600 failed in last 2 months of 1930
- 66% farmers lost money due to prohibition reducing demand for grain
- Coal industries dying, car industry was 80% operational and small businesses
had a 50% fail rate
- Great Depression Impact
- 75% of Ford workers were unemployed and ⅓ of the population had zero income
- 25,000 in NYC wanted jobs in the 30k factories but they couldn’t be paid
- 250,000 unemployed in Detroit and Chicago teachers weren’t paid from 1932-33
- 90% of West Virginia and Kentucky were malnourished, no federal or state help,
charities couldn’t cope and Detroit banks refused to help unless ⅓ of families
stopped relief
- Black Americans were 6 times more unemployed than White Americans
Second World War and New Deal:
- WW2 impact on economy
- Military workers were well-paid, manufacturing workers enjoyed 27% more
income and farmers incomes doubled from 1940-45
- Wartime prices rose by 28% but wages rose by 40%
- Due to the lend-lease deals, the US received orders for 10800 planes and 13000
aircraft engines in a year
- $20 billion distributed to veterans between 1945-55
- 1944 GI Bill of Rights provided funds for college and businesses for 8 million
veterans which led to a 5% increase in college-educated Americans
- New Deal
- WPA employed 8.5 million people and built 8000 schools and hospitals
- Alphabet Agencies like the Public Works Admin employed 3 million and built
13000 schools
- AAA increased farm income from $4.5 billion to $6.9 billion from 1932-35
- Emergency Relief Appropriation Act 1935 allocated $45.5 billion in aid
- Banking Act 1935 shifted control from private banks to gov regulated
Post-War Boom:
- Huge demand for consumer goods led to production increasing from $213 billion to $284
billion from 1945-50
- Income increased from $2157 in 1960 and $3050 in 1970
- Post-War Baby Boom
- 1947-57 had an increase in nappy sales from $32 to $50 million
- Toy manufacturers made $2 billion in 1960
- These babies would grow to be consumers themselves
- Poverty fell from 22% to 12% from 1960-69
Crisis of the 70s:
- Vietnam War led to $10 billion deficit
1917-80
Impact of boom, bust and recovery:
- WWI created a post-war depression
- Wheat farmers made a profit in WW1 but prices fell due to overproduction and
also farmers producing more to cover loans - led to no profit, unemployment and
economic hardship
- Coal industry declining due to 1919/1920 strikes and the popularity of other
industries which led to unemployment and economic decline
- Due to isolationism, Republicans placed tariffs on products but in return foreign
countries placed tariffs on US goods leading to unproductive trade and
overproduction
- 1920s economic boom
- Fordney-McCumber Tariff Act favoured American goods and didn’t place
regulations on industry. The Federal Highway Act 1921 constructed more roads
for better movement of trade
- Mass production techniques introduced such as Ford producing cars in 10
seconds in 1925 leading to cars selling more and quicker. Ford Model T cost
$295 in 1925 but was $950 in 1914
- Credit became increasingly popular especially with mortgages, by 1929 people
borrowed 10% of their income and $7 million worth of goods was sold on credit
including 75% of cars and 50% of household appliances
- Electricity was the new power source; from 1917-30, the homes and businesses
working on electricity increased from 7-24 million
- Great Depression origin
- Fordney McCumber Tariff Act and Emergency Tariff Act did nothing for
overproduction
, - 500 banks failed annually in 1920s and 600 failed in last 2 months of 1930
- 66% farmers lost money due to prohibition reducing demand for grain
- Coal industries dying, car industry was 80% operational and small businesses
had a 50% fail rate
- Great Depression Impact
- 75% of Ford workers were unemployed and ⅓ of the population had zero income
- 25,000 in NYC wanted jobs in the 30k factories but they couldn’t be paid
- 250,000 unemployed in Detroit and Chicago teachers weren’t paid from 1932-33
- 90% of West Virginia and Kentucky were malnourished, no federal or state help,
charities couldn’t cope and Detroit banks refused to help unless ⅓ of families
stopped relief
- Black Americans were 6 times more unemployed than White Americans
Second World War and New Deal:
- WW2 impact on economy
- Military workers were well-paid, manufacturing workers enjoyed 27% more
income and farmers incomes doubled from 1940-45
- Wartime prices rose by 28% but wages rose by 40%
- Due to the lend-lease deals, the US received orders for 10800 planes and 13000
aircraft engines in a year
- $20 billion distributed to veterans between 1945-55
- 1944 GI Bill of Rights provided funds for college and businesses for 8 million
veterans which led to a 5% increase in college-educated Americans
- New Deal
- WPA employed 8.5 million people and built 8000 schools and hospitals
- Alphabet Agencies like the Public Works Admin employed 3 million and built
13000 schools
- AAA increased farm income from $4.5 billion to $6.9 billion from 1932-35
- Emergency Relief Appropriation Act 1935 allocated $45.5 billion in aid
- Banking Act 1935 shifted control from private banks to gov regulated
Post-War Boom:
- Huge demand for consumer goods led to production increasing from $213 billion to $284
billion from 1945-50
- Income increased from $2157 in 1960 and $3050 in 1970
- Post-War Baby Boom
- 1947-57 had an increase in nappy sales from $32 to $50 million
- Toy manufacturers made $2 billion in 1960
- These babies would grow to be consumers themselves
- Poverty fell from 22% to 12% from 1960-69
Crisis of the 70s:
- Vietnam War led to $10 billion deficit
