The USA in the 1920s-who benefitted
- Created by: Heather
- 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,
- Isolationism
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