1.How far did the US economy boom in the 1920s? 2.How far did US society change in the 1920s? 3.What were the causes and consequences of the Wall Street Crash? 4.How successful was the New Deal? The USA The BIG PICTURE

The USA’s wealth: WW1 had left America very rich It was the world’s leading industrial nation Rich in raw materials like coal, iron ore and oil, had lots of fertile land The population was hardworking and ambitious

New industries: The production of American industry increased by 50% during the ‘20s Caused by huge demand by consumers for new products Motor car industry was the industry saw the most growth – by 1929 it employed more than half a million people

Rising wages and stable prices: Incomes rose by around a quarter during the ‘20s Prices of goods were steady or falling - mainly because of mass production techniques like the assembly line which increased production and made goods cheaper

Government policies: Republican governments of the 1920s believed that government should interfere in people’s lives as little as possible They cut taxes - they believed that the more money people had, the more they would spend and therefore businesses would grow They increased tariffs – which taxed imports (goods from overseas), making them more expensive than American goods

Hire Purchase: Enabled customers to buy goods when they couldn’t afford the full cost – putting down a small deposit and paying off the rest in instalments Mail order catalogues allowed people all over the country to buy

Weak unions: The government didn’t like trade unions and allowed employers to break up strikes and not employ union members Meant that employers could keep wages low and hours of work long

The impact of the boom: The population of the USA grew rapidly in the 1920s due to immigration and higher birth rates The advertising industry expanded massively, sophisticated sales methods developed Hire purchase meant that people who couldn’t previously afford goods, now could People felt the need to keep up with their neighbours’ new purchases

HOWEVER DESPITE THIS “BOOM” SOME PEOPLE REMAINED POOR. 10% OF THE COUNTRY’S WEALTH WENT TO THE POOREST 42% SOME INDUSTRIES DID NOT PROSPER – CAN YOU REMEMBER WHICH INDUSTRIES SUFFERED? TIME TO PLAY DEMAND OR DECLINE!

Which industries did well and which didn’t in the boom years of the 1920s? Identify the industry, then decide whether it there was DEMAND! or DECLINE!

DEMAND! Between 1920 and 1929 sales rose from 8 million to 23 million. By 1925, a Ford car was built every 10 seconds

DEMAND! In the years before 1914 average sales were just above $4 billion; in the 1920s they were above $7 billion

DECLINE!... and DEMAND! Prohibition (a ban on the manufacture, transport and sale of alcohol) had been introduced in 1919 so brewers were suffering… But the sale in illegal alcohol by gangsters went through the roof

DEMAND! Industrial growth created a demand for factories, offices, roads, houses, hospitals, schools and skyscrapers

DECLINE! Greater use of electricity and oil for power meant that demand fell and many mines were forced to shut.

DEMAND! The availability of credit and the massive improvement in the transport system meant that people in every part of the country could benefit from the consumer boom

DEMAND! A whole advertising industry grew up to promote the vast range of consumer goods on offer

DEMAND! Mass-production meant that the industries associated with the boom in the automobile industry like rubber, steel and glass also boomed.

DECLINE! The development of artificial fibres, changes in fashion, and cheaper wages in the south meant that parts of the textile industry was in decline.

DEMAND! The boom in automobiles and construction meant that demand for steel and iron inevitably rose with them.

DECLINE! There was overproduction in tin mining which meant that prices dropped and wages fell.

DECLINE! Farmer’s income had been $22 billion in 1919 – by 1928 it had fallen to $13 billion. This was due to overproduction and increased competition from Canada.