Presentation on theme: "How did the US economy change 1910-20? Basic Facts."— Presentation transcript:
How did the US economy change 1910-20? Basic Facts
The US economy in 1910 n By 1910 the US economy was one of the worlds strongest. n Both industry and agriculture were strong. n All classes were beginning to benefit. n There was regular employment and steady incomes. n The economy was on the upturn. n However, not all Americans were benefiting...
Those who did not benefit n Poor, illiterate immigrants in the cities n Black people living in the south n Native Americans living in poor conditions on the reservations
Impact of the First World War n USA had been reluctant to enter the war and did not join until 1917. n This benefited US industry and agriculture as they were able to supply war-torn Europe.
Consequences of WWI n US firms able to make technological advances like Bakelite (plastic). n Development of mass production speeded up production and lowered costs. n US farmers sold surplus produce to Europe. n US banks lent money to Europe. n Businessmen invested in western European firms for future profit.
Consequences of WWI n In the months after Nov 1918 many of the US soldiers returned home. n US factories, which had been expanding to cope with supplying the war, were now shedding jobs. n This led to UNEMPLOYMENT.
Consequences of WWI n Employers began to refuse demands for wage increases as they knew they could replace workers easily. n However, living costs had risen substantially since 1914. n 1919 wave of strikes across the country. Fear of Communism and racial tensions increased.
1920 n Beginning of economic recession n By 1921 over 5 million were unemployed. n BUT slowdown did not last long. n By 1922 the economy was showing signs of recovery.