History notes II
P. 2 - The USA, c1920-55: Boom, Bust & Recovery
2a.1 - Boom and crash, 1920-29
The Roaring 20’s
GNP rose from $73.3B to $104.4B (1920-29)
unemployment remained at 3.7%
inflation was constantly under 1%
had advantages other countries didn’t have
larger population
coalfields
oil reserves
metals
cheap labour from european immigrants
advanced transportation systems
Mass production
ford established a car manufacturing plant and introduced the production line, allowing
workers to focus on one part of the process - this helped the process move at a more steady
pace & allowed low-skilled workers to be employed
production time for one car was reduced from 12.5hrs to 2.5hrs
production levels also increased by combining mass production with scientific management
after fredrick taylor introduced time and motion concepts to create more time-efficient
strategies → less labour costs
History notes II 1
, the introduction of large industrial corporations allowed for companies to benefit from
economies of scale and to control larger portions of markets
electrification also allowed for other advancements, such as appliances
75% of americans had electricity in their homes by 1929, but rural areas still struggled
Technological advances
the first commercial radio station began broadcasting in 1920; there were 619 by 1929
radio and cinema allowed for larger audiences for marketing
by 1929, every town had a theatre
rise in car ownership allowed for more mobility, growing the leisure industry
sea side resorts rapidly grew
also encouraged the construction industry as infrastructure such as roads needed to be
built/improved
Automobiles
car registration rose from 8 million to 28 million
the car industry directly employed 375,000 workers; by 1929, 7% of america’s workforce was
employed in this industry
also stimulated the growth of other industries, such as…
steel
glass
rubber
oil / petrol stations
Hire purchase
real wages rose 13%
allowed customers to buy things and pay it off later, usually on a monthly basis
75% of cars were bought on hire purchase
History notes II 2
, consumer borrowing rose from $2B to $8B
* laissez-faire policies aided the development of big businesses ; aiming to lower taxes and
reduce government regulation
fordney-mccumber tariff 1922
taxes on foreign goods to encourage local products being bought instead - protectionism
1926 revenue act
lowered tax rates for high earners & on transfer of property
federal trade commission
reduced regulations, allowing price-fixing by businesses to raise profits to be ignored, as
well as low wages & child labour
Farmers, black americans & limits to the boom
US agriculture boomed when europe was devastated in ww1 due to the increased demand
leading to a rise in prices of 83% in 1913-17, but the demand dropped when they recovered -
also affected by technological advances that increased productivity & unemployment
the south-east suffered from the boll weevil, a pest, leading to a drop in cotton production
grain demand fell after the prohibition as wheat and barley were no longer needed for
whiskey and beer production
the mcnary-haugen bill was introduced by the government to stabilize prices by buying
surplus
black americans also suffered greatly, as many still lived in the south east and faced legal &
social discrimination
sharecroppers - poor farmers that would rent land & seed, paying the owner after the crop was
harvested and sold - had better jobs than most black americans outside the south-east, but
suffered if the harvest turned out poorly
black americans in the north faced less discrimination but were still only given low-level jobs,
such as domestic servants
1 million black americans migrated from the south-east to northern industrial cities for jobs in
the 20’s - by 1929, they were engaged in manufacturing employment in large numbers
History notes II 3
P. 2 - The USA, c1920-55: Boom, Bust & Recovery
2a.1 - Boom and crash, 1920-29
The Roaring 20’s
GNP rose from $73.3B to $104.4B (1920-29)
unemployment remained at 3.7%
inflation was constantly under 1%
had advantages other countries didn’t have
larger population
coalfields
oil reserves
metals
cheap labour from european immigrants
advanced transportation systems
Mass production
ford established a car manufacturing plant and introduced the production line, allowing
workers to focus on one part of the process - this helped the process move at a more steady
pace & allowed low-skilled workers to be employed
production time for one car was reduced from 12.5hrs to 2.5hrs
production levels also increased by combining mass production with scientific management
after fredrick taylor introduced time and motion concepts to create more time-efficient
strategies → less labour costs
History notes II 1
, the introduction of large industrial corporations allowed for companies to benefit from
economies of scale and to control larger portions of markets
electrification also allowed for other advancements, such as appliances
75% of americans had electricity in their homes by 1929, but rural areas still struggled
Technological advances
the first commercial radio station began broadcasting in 1920; there were 619 by 1929
radio and cinema allowed for larger audiences for marketing
by 1929, every town had a theatre
rise in car ownership allowed for more mobility, growing the leisure industry
sea side resorts rapidly grew
also encouraged the construction industry as infrastructure such as roads needed to be
built/improved
Automobiles
car registration rose from 8 million to 28 million
the car industry directly employed 375,000 workers; by 1929, 7% of america’s workforce was
employed in this industry
also stimulated the growth of other industries, such as…
steel
glass
rubber
oil / petrol stations
Hire purchase
real wages rose 13%
allowed customers to buy things and pay it off later, usually on a monthly basis
75% of cars were bought on hire purchase
History notes II 2
, consumer borrowing rose from $2B to $8B
* laissez-faire policies aided the development of big businesses ; aiming to lower taxes and
reduce government regulation
fordney-mccumber tariff 1922
taxes on foreign goods to encourage local products being bought instead - protectionism
1926 revenue act
lowered tax rates for high earners & on transfer of property
federal trade commission
reduced regulations, allowing price-fixing by businesses to raise profits to be ignored, as
well as low wages & child labour
Farmers, black americans & limits to the boom
US agriculture boomed when europe was devastated in ww1 due to the increased demand
leading to a rise in prices of 83% in 1913-17, but the demand dropped when they recovered -
also affected by technological advances that increased productivity & unemployment
the south-east suffered from the boll weevil, a pest, leading to a drop in cotton production
grain demand fell after the prohibition as wheat and barley were no longer needed for
whiskey and beer production
the mcnary-haugen bill was introduced by the government to stabilize prices by buying
surplus
black americans also suffered greatly, as many still lived in the south east and faced legal &
social discrimination
sharecroppers - poor farmers that would rent land & seed, paying the owner after the crop was
harvested and sold - had better jobs than most black americans outside the south-east, but
suffered if the harvest turned out poorly
black americans in the north faced less discrimination but were still only given low-level jobs,
such as domestic servants
1 million black americans migrated from the south-east to northern industrial cities for jobs in
the 20’s - by 1929, they were engaged in manufacturing employment in large numbers
History notes II 3
