The USA in the 1920s-who benefitted

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  • Created on: 23-03-14 14:52
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  • USA in the 1920s- Who benefited/What was it like?
    • Isolationism
      • Following their involvement in WW1, the US wanted to return to their foreign policy like before the war,
      • It was decided it was best not to get involved with European Politics which was known as Isolationism,
      • This idea was wanted by most American people and Warren Harding became President and bought the USA back to normalcy,
    • World War One
      • The US benefited from the war in economic terms,
      • The US trade increased as Europe was preoccupied with fighting
      • USA took the lead in production and innovation,
      • Huge interest on loans to Europe of $10,000 million-which investors could then reinvest in the USA
    • Republican policy
      • Three Republican Presidents- Harding, Hoover and Coolidge all believed the federal Government should not interfere with the market,
      • If businesses looked and righted itself, greater profits would lead to higher wages and prosperity,
      • This was known as Laissez-Faire,
    • Economic Boom
      • Goods were previously only bought by the rich but were now mass produced with Henry Ford's new production line where the car price fell to $295 in 1920,
      • There was new methods of advertising and selling called hire purchase where you would pay for the product over several weeks,
    • Growing Industries
      • It was a city booming as there was a massive growth of cities and skyscrapers were built,
      • Motor industry could now make cars in 10 seconds in 1927 when it used to take 14 hours with the new production line which means 9 million cars in 1919 increased to 26 million in 1929,
      • There was mass media-radios increased from 60,000 in 1919 to 10 million in 1929,
      • Consumer goods like refrigerators and vacuum cleaners could be bought with shares,
    • Prohibition,
      • The banning of alcohol introduced to avoid problems such as poverty, crime and violence,
      • Many citizens, especially in cities were prepared to break the law to drink. Maryland didn't even start the prohibition,
      • It gave the opportunity for organised crime and gangsters such as Al Capone to become more famous and richer,

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