The USA, c1920–55:
Boom, Bust and Recovery
Essay Plan Pack
Grade A / A* — 2025
────────────────────────────────────────────
A Level History
Pearson Edexcel 2015, Option 2H.1
emilyinyork | A‑Level History Revision
, ‘The creation of the assembly line was the main reason for the economic boom of the
1920s’ How far do you agree?
1. Assembly line 3. Hire purchase
− Henry Ford car manufacturing Detroit: − Real wages rose 13% 1923-29; lead to
each worker learns how to assembly a consumer boom + offer of hire purchase
specific part of car (low/semi-skilled) schemes
− Time to produce car from 12.5 hours − Buy good for small % of price + pay the
1912 to 2.5 hours by 1913 rest in monthly installments (credit)
− Ford T model most popular, only cost − Over 75% of cars bought on schemes
$290 in 1925, by 1920: 8 million cars, − Consumer borrowing 1920 = $2 billion, by
1929: 26 million 1929 = over $8 billion
− 375000 workers employed in car Analysis: without hire purchase, majority of
industry, 1929 car industry employing 7% goods would not have been purchased
of manufacturing workforce + paying 9% despite more jobs + cheaper goods
manufacturing wages
− Frederick Taylor: analysed production to
reduce labor costs + increase profit
− GNP rose from $73b to $104b 1920-29
Analysis: mass production means cheaper
goods + more jobs = people can purchase
more stuff. Production increased; cars
stimulated growth of steel, glass + oil ind.
2. Technological advancements 4. Lassez-faire economic policy
− Radio: first commercial Nov 1920 KDKA − Fordney McCumber Tariff 1922: high
Pittsburgh, Pennsylvania (corporations taxes on imported goods to protect US
advertising goods), 1929 = 619 comm. made goods – increase in steel, dye,
stations + mid 1930s = 75% ownership chemicals etc. (leads to overproduction
− Cinema: every small town by 1929 in agriculture; cause of Wall St Crash)
− 1921 Federal Highways Act: 1920-29 − Tax reductions: large scale industry 50%
length of surfaced road from 350000 to to 20%, $3.5 billion in tax reductions
662000 miles; boost construction 1921-32
industry + billboard advertising − Few regulations: did not interfere in
− Electrical appliances: 2.4 million in 1912 economy + few laws protecting labor (low
to 160 million in 1929 (towns + cities – wages + children used in South)
rural had no electricity) Analysis: underpins all factors as without
− By 1929, 75% of homes had electricity laissez faire policy and lack of regulation,
Analysis: technological advances in radio/ hire purchase would not have been allowed
cinema/roads allowed for more advertising = on such a scale therefore lower purchase of
economic prosperity because corporation goods to boost economy in 1920s US
production increased as purchases did
emilyinyork | A‑Level History Revision
, How accurate is it to say that the economic boom was enjoyed by all in 1920s USA?
To what extent was the 1920s a period of widespread economic prosperity?
YES NO
1. Mass production/the automobile 3. Farmers (rural)
− Henry Ford car manufacturing Detroit: − Post WW1: sales to Europe dropped =
each assemble a specific part of car reduced income
(low/semi-skilled jobs – paid $5 a day) − Machinery improvements (tractors)
− Time to produce car from 12.5 hours increased unemployment as less farmers
1912 to 2.5 hours by 1913 needed for higher production
− Ford T model only cost $290 in 1925, by − Grain demand fell due to national
1920: 8 million cars, 1929: 26 million prohibition Jan 1920 (Volstead Act)
− 375000 workers employed in car − Increased production but low demand
industry, 1929 car industry employing 7% (Fordney McCumber Tariff 1922 made
of manufacturing workforce + paying 9% sales abroad more difficult) =
of manufacturing wages overproduction (cause of Wall St Crash)
− Mass production + technological adv: − Boll Weevill damaged cotton crop 1920s
electrical appliances 2.4 million in 1912 + attempts to aid farmers failed due to
to 160 million in 1929 laissez –faire economic policy
Analysis: lots of jobs and cheap goods Analysis: depleted sales + increased
available to all, people making decent unemployment = lack of prosperity for
amounts of money for low/semi-skilled jobs farmers. Technological advancements
= WIDESPREAD prosperity superficial to cities/urban areas (1929 rural
areas without electricity)
2. Hire purchase 4. Black Americans
− Real wages rose 13% 1923-29; lead to − Majority living in South as sharecroppers
consumer boom + offer of hire purchase buying seeds + tools from landowners
schemes and pay back a percentage of their crop;
− Buy goods for small % of price + pay the in debt + stuck in jobs (especially if bad
rest in monthly installments (credit) harvest), ensuring never escape poverty
− Over 75% cars bought on schemes − The Great Migration of <1 million Black
− Consumer borrowing 1920 = $2 billion, by Americans from south to northern cities
1929 = over $8 billion (New York, Detroit, Chicago)
− 75% Americans own a radio mid 1930s + − Impoverished outside south: low-paid +
other luxury goods e.g. vacuum cleaners; menial jobs (laborers, clerks + domestic
gave women more free time servants)
Analysis: allowed growth of consumerism + − Violence of KKK (4 m members in 1924)
purchase of luxury goods for almost ALL in Analysis: did not see any benefits of mass
this period. Cycle of prosperity: more jobs + production or hire purchase – reserved to
higher wages = more spending = more sales white men living in cities where rich
= more production = more jobs... businessmen got more rich + prospered
emilyinyork | A‑Level History Revision
, To what extent was the Wall St Crash 1929 caused by overproduction?
To what extent was the Wall St Crash a result of poor government regulation? (banking)
1. Overproduction 3. Banking system
− US manufacturing capacity rose by 50%, − Low 5s set at 3.5% in 1927 by Federal
but exports only rose by 38% Reserve Board: encouraged borrowing,
− Top 5% owned 33% wealth, bottom 40% most spent on speculation + property
owned only 12.5% - lack of spending investments; economic growth limited
power to buy goods; if could afford luxury − 2/3 of banks operated outside of Federal
goods already had them Reserve Board: high risk lending
− Fordney McCumber Tariff 1922 placed − When unable to pay back ‘on the margin’
tariffs on foreign goods, countries placed loans, thousands of banks exposed to
tariffs in return; reduced exports/sales debts (limits on loans = speculation drops
− Farmers had surplus food + inability to = MORE drops in share prices)
sell abroad; 66% operating at a loss − Failure of debtors to repay loans led to
− Surplus goods = price + value drops = bank closures: 1925-28 5000 banks out of
company losses + drop in price of shares business, US citizens lose saving +
leading to loss of confidence + selling slowed growth of industry (reliant on
shares (29 Oct: 16 million sold low prices loans)
Analysis: all ultimately leads to a decline in Analysis: ‘Buying on margin’ due to a lack of
prices and therefore stock prices – panic regulations and Laissez-Faire attitude.
selling. Overproduction always causes Problematic, lots of small banks not
depression. checked, big banks have power = massive
collapse
2. Over confidence / ‘Bull market’ 4. Land speculation
− Prosperity 1920s = belief bull market − Florida housing boom 1920s: incomes
would never end: increased speculation rose = want to own lands in Florida
on stock market, Wall St shares $34b to − Rich industrialists (T. Coleman Du Pont)
$64b 1925-29 buy land in southern Florida + sell on
− More risks taken + stocks bought ‘on the − Land boom + thousands of homes
margin’ for 10% of price: IF shares went built/sold: 1920-25 Miami population
up, could be sold + profit used to pay loan grew 30000 to 130000
− October 1929 shares were grossly − Problems: lack of infrastructure stopped
overvalued (especially steel business) development, unfair speculators + taxes
− When companies disappoint = selling of on property speculation = reduced
shares which led to drop in prices = wave speculation + confidence in investing
of panic selling: 12.8m shares sold 24 Oct − Major hurricane 1926 wrecked areas +
‘Black Thursday’ – market shrunk 50% in 6 dissuaded many from investing
weeks Analysis: Sale of land in Florida, crashes
(1926) due to hurricane, fake towns like
Analysis: overconfidence in system, Bull Nettie and other frauds = leads to a loss of
Market, huge growth – recklessness + buying confidence in investing so hits the stock
on margin is permitted due to this mentality; market leading to sale of shares + price fall
when prices fell + panic selling of shares (prelude to Wall St Crash)
people unable to pay back loans to banks +
became bankrupt
emilyinyork | A‑Level History Revision
Boom, Bust and Recovery
Essay Plan Pack
Grade A / A* — 2025
────────────────────────────────────────────
A Level History
Pearson Edexcel 2015, Option 2H.1
emilyinyork | A‑Level History Revision
, ‘The creation of the assembly line was the main reason for the economic boom of the
1920s’ How far do you agree?
1. Assembly line 3. Hire purchase
− Henry Ford car manufacturing Detroit: − Real wages rose 13% 1923-29; lead to
each worker learns how to assembly a consumer boom + offer of hire purchase
specific part of car (low/semi-skilled) schemes
− Time to produce car from 12.5 hours − Buy good for small % of price + pay the
1912 to 2.5 hours by 1913 rest in monthly installments (credit)
− Ford T model most popular, only cost − Over 75% of cars bought on schemes
$290 in 1925, by 1920: 8 million cars, − Consumer borrowing 1920 = $2 billion, by
1929: 26 million 1929 = over $8 billion
− 375000 workers employed in car Analysis: without hire purchase, majority of
industry, 1929 car industry employing 7% goods would not have been purchased
of manufacturing workforce + paying 9% despite more jobs + cheaper goods
manufacturing wages
− Frederick Taylor: analysed production to
reduce labor costs + increase profit
− GNP rose from $73b to $104b 1920-29
Analysis: mass production means cheaper
goods + more jobs = people can purchase
more stuff. Production increased; cars
stimulated growth of steel, glass + oil ind.
2. Technological advancements 4. Lassez-faire economic policy
− Radio: first commercial Nov 1920 KDKA − Fordney McCumber Tariff 1922: high
Pittsburgh, Pennsylvania (corporations taxes on imported goods to protect US
advertising goods), 1929 = 619 comm. made goods – increase in steel, dye,
stations + mid 1930s = 75% ownership chemicals etc. (leads to overproduction
− Cinema: every small town by 1929 in agriculture; cause of Wall St Crash)
− 1921 Federal Highways Act: 1920-29 − Tax reductions: large scale industry 50%
length of surfaced road from 350000 to to 20%, $3.5 billion in tax reductions
662000 miles; boost construction 1921-32
industry + billboard advertising − Few regulations: did not interfere in
− Electrical appliances: 2.4 million in 1912 economy + few laws protecting labor (low
to 160 million in 1929 (towns + cities – wages + children used in South)
rural had no electricity) Analysis: underpins all factors as without
− By 1929, 75% of homes had electricity laissez faire policy and lack of regulation,
Analysis: technological advances in radio/ hire purchase would not have been allowed
cinema/roads allowed for more advertising = on such a scale therefore lower purchase of
economic prosperity because corporation goods to boost economy in 1920s US
production increased as purchases did
emilyinyork | A‑Level History Revision
, How accurate is it to say that the economic boom was enjoyed by all in 1920s USA?
To what extent was the 1920s a period of widespread economic prosperity?
YES NO
1. Mass production/the automobile 3. Farmers (rural)
− Henry Ford car manufacturing Detroit: − Post WW1: sales to Europe dropped =
each assemble a specific part of car reduced income
(low/semi-skilled jobs – paid $5 a day) − Machinery improvements (tractors)
− Time to produce car from 12.5 hours increased unemployment as less farmers
1912 to 2.5 hours by 1913 needed for higher production
− Ford T model only cost $290 in 1925, by − Grain demand fell due to national
1920: 8 million cars, 1929: 26 million prohibition Jan 1920 (Volstead Act)
− 375000 workers employed in car − Increased production but low demand
industry, 1929 car industry employing 7% (Fordney McCumber Tariff 1922 made
of manufacturing workforce + paying 9% sales abroad more difficult) =
of manufacturing wages overproduction (cause of Wall St Crash)
− Mass production + technological adv: − Boll Weevill damaged cotton crop 1920s
electrical appliances 2.4 million in 1912 + attempts to aid farmers failed due to
to 160 million in 1929 laissez –faire economic policy
Analysis: lots of jobs and cheap goods Analysis: depleted sales + increased
available to all, people making decent unemployment = lack of prosperity for
amounts of money for low/semi-skilled jobs farmers. Technological advancements
= WIDESPREAD prosperity superficial to cities/urban areas (1929 rural
areas without electricity)
2. Hire purchase 4. Black Americans
− Real wages rose 13% 1923-29; lead to − Majority living in South as sharecroppers
consumer boom + offer of hire purchase buying seeds + tools from landowners
schemes and pay back a percentage of their crop;
− Buy goods for small % of price + pay the in debt + stuck in jobs (especially if bad
rest in monthly installments (credit) harvest), ensuring never escape poverty
− Over 75% cars bought on schemes − The Great Migration of <1 million Black
− Consumer borrowing 1920 = $2 billion, by Americans from south to northern cities
1929 = over $8 billion (New York, Detroit, Chicago)
− 75% Americans own a radio mid 1930s + − Impoverished outside south: low-paid +
other luxury goods e.g. vacuum cleaners; menial jobs (laborers, clerks + domestic
gave women more free time servants)
Analysis: allowed growth of consumerism + − Violence of KKK (4 m members in 1924)
purchase of luxury goods for almost ALL in Analysis: did not see any benefits of mass
this period. Cycle of prosperity: more jobs + production or hire purchase – reserved to
higher wages = more spending = more sales white men living in cities where rich
= more production = more jobs... businessmen got more rich + prospered
emilyinyork | A‑Level History Revision
, To what extent was the Wall St Crash 1929 caused by overproduction?
To what extent was the Wall St Crash a result of poor government regulation? (banking)
1. Overproduction 3. Banking system
− US manufacturing capacity rose by 50%, − Low 5s set at 3.5% in 1927 by Federal
but exports only rose by 38% Reserve Board: encouraged borrowing,
− Top 5% owned 33% wealth, bottom 40% most spent on speculation + property
owned only 12.5% - lack of spending investments; economic growth limited
power to buy goods; if could afford luxury − 2/3 of banks operated outside of Federal
goods already had them Reserve Board: high risk lending
− Fordney McCumber Tariff 1922 placed − When unable to pay back ‘on the margin’
tariffs on foreign goods, countries placed loans, thousands of banks exposed to
tariffs in return; reduced exports/sales debts (limits on loans = speculation drops
− Farmers had surplus food + inability to = MORE drops in share prices)
sell abroad; 66% operating at a loss − Failure of debtors to repay loans led to
− Surplus goods = price + value drops = bank closures: 1925-28 5000 banks out of
company losses + drop in price of shares business, US citizens lose saving +
leading to loss of confidence + selling slowed growth of industry (reliant on
shares (29 Oct: 16 million sold low prices loans)
Analysis: all ultimately leads to a decline in Analysis: ‘Buying on margin’ due to a lack of
prices and therefore stock prices – panic regulations and Laissez-Faire attitude.
selling. Overproduction always causes Problematic, lots of small banks not
depression. checked, big banks have power = massive
collapse
2. Over confidence / ‘Bull market’ 4. Land speculation
− Prosperity 1920s = belief bull market − Florida housing boom 1920s: incomes
would never end: increased speculation rose = want to own lands in Florida
on stock market, Wall St shares $34b to − Rich industrialists (T. Coleman Du Pont)
$64b 1925-29 buy land in southern Florida + sell on
− More risks taken + stocks bought ‘on the − Land boom + thousands of homes
margin’ for 10% of price: IF shares went built/sold: 1920-25 Miami population
up, could be sold + profit used to pay loan grew 30000 to 130000
− October 1929 shares were grossly − Problems: lack of infrastructure stopped
overvalued (especially steel business) development, unfair speculators + taxes
− When companies disappoint = selling of on property speculation = reduced
shares which led to drop in prices = wave speculation + confidence in investing
of panic selling: 12.8m shares sold 24 Oct − Major hurricane 1926 wrecked areas +
‘Black Thursday’ – market shrunk 50% in 6 dissuaded many from investing
weeks Analysis: Sale of land in Florida, crashes
(1926) due to hurricane, fake towns like
Analysis: overconfidence in system, Bull Nettie and other frauds = leads to a loss of
Market, huge growth – recklessness + buying confidence in investing so hits the stock
on margin is permitted due to this mentality; market leading to sale of shares + price fall
when prices fell + panic selling of shares (prelude to Wall St Crash)
people unable to pay back loans to banks +
became bankrupt
emilyinyork | A‑Level History Revision
