Capitalism in the USA in the 1920’s
What is Capitalism?
Economic system based on private ownership
Boost industrialisation
Build factories, buy machinery and start up the business
Profits used to invest in more businesses
Increase of wealth of the individuals
Led to economic growth and development of new technology
Based on idea of free market (compete and set own prices)
Encouraged competition without interference from the government
Resulted in exploitation of workers
Led to inequality
Capitalism developed in industrialised countries
Key features of Capitalism
Private ownership of
resources
o Profits go to
individuals
o Individuals carry cost
if business fails
Opportunities to make
money
o Uneven distribution
of wealth
o Gap between rich and poor
Little government interference
Emphasis on private services
o Variety of goods and services
Belief that competition is healthy
Possibility of success leads to hard workers
Freedom of government control
, The American Dream
US was seen as land of opportunity
Millions of immigrants poured into America from all over the world
o Jobs were available
o Wages were higher
o More opportunities
o Greater freedom
They came in search of the American Dream
Qualities like ambition, self-reliance and hard work would make this
dream a reality
Herbert Hoover the president from 1929-1933 was an example of rags
to riches
o Believed in rugged industrialism
Capitalist Boom of the 1920’s
Extraordinary economic growth
Foundations of this boom were the raw materials, skilled labour force and
a growing market for manufactured goods
Another factor was the economic policy of the Republican Party
o Little government interference
o High customs on imported goods
o Low taxes to encourage higher spending
o Weak trade unions to lessen workers power
New technologies developed to produce a range of consumer goods
New products became the foundation of the economic boom
What is Capitalism?
Economic system based on private ownership
Boost industrialisation
Build factories, buy machinery and start up the business
Profits used to invest in more businesses
Increase of wealth of the individuals
Led to economic growth and development of new technology
Based on idea of free market (compete and set own prices)
Encouraged competition without interference from the government
Resulted in exploitation of workers
Led to inequality
Capitalism developed in industrialised countries
Key features of Capitalism
Private ownership of
resources
o Profits go to
individuals
o Individuals carry cost
if business fails
Opportunities to make
money
o Uneven distribution
of wealth
o Gap between rich and poor
Little government interference
Emphasis on private services
o Variety of goods and services
Belief that competition is healthy
Possibility of success leads to hard workers
Freedom of government control
, The American Dream
US was seen as land of opportunity
Millions of immigrants poured into America from all over the world
o Jobs were available
o Wages were higher
o More opportunities
o Greater freedom
They came in search of the American Dream
Qualities like ambition, self-reliance and hard work would make this
dream a reality
Herbert Hoover the president from 1929-1933 was an example of rags
to riches
o Believed in rugged industrialism
Capitalist Boom of the 1920’s
Extraordinary economic growth
Foundations of this boom were the raw materials, skilled labour force and
a growing market for manufactured goods
Another factor was the economic policy of the Republican Party
o Little government interference
o High customs on imported goods
o Low taxes to encourage higher spending
o Weak trade unions to lessen workers power
New technologies developed to produce a range of consumer goods
New products became the foundation of the economic boom
