“The Boom” By: Savannah C, Ashley H, Paige L and Kianna V. Per. 3

Make a T-chart On the left side of the organizer label it positives and on the right side label it negative affects.

Did all Americans benefit from the economic boom in the 1920’s? Did all Americans benefit from the economic boom in the 1920’s? This is your homework assignment, write a 150 word summary on this question..

The positives of the US Industry  Rich natural resources provided for industrial use.  A growing population provided workers for industries.  Production of steel, chemicals glass and machinery helped produce the economic boom.  Industrial Efficiency movement proposed efficient techniques to industries.  Motor-car industry had a huge impact on the USA and employed hundreds of thousands of people.

The negatives of the US Industry  “Buy Now, Pay Later” caused an overload of credit problems and everyone wanting to get loans.  Older industries started to suffer; The coal industry had to compete with oil and electricity and leather and textiles were protected by foreign competition but not domestic competition.  There were many industrial strikes.

Agriculture  Industrial growth caused a large agricultural decline.  Wheat production failed due to a falling population and competition with Canada.  Farm income dropped from $22 billion in 1919 to only $13 billion in  6 million farm workers left their lands in the 1920’s to try work in the city.

Agriculture continued  African Americans were hit the hardest because most of their jobs were on farms or working for farmers.  Problems began with overproduction easy access to farming land and improved machinery (combine harvester and fertilizers), made agricultural production extremely efficient.  Farmers flooded markets with produce and food prices fell by 50%.

New Republican policies Between all us presidents were republicans and the dominated congress 1. Laissez- faire The idea of laissez-faire was that the government interferes as little as possible in the everday lives of the people. The government leaves the small businesses alone.

Republican policies 2. Tariffs Republicans believed in imports tariffs whichmade it expensive to import foreign goods. Example: 1922 Fordney-McCumber tariff made imported goods expensive in the USA. The USA also closed its borders to foreign immigrants.

Republican policies. 3. Low Taxation Benefitted working people but brought in more money to the wealthy. Theory: if people kept their own money they would spend it on American goods and the wealthy would invest into industries.

Republican policies 4. Trust Large corporations dominated by the industry - Woodrow wilson and democrats fought against trusts because it was unhealthy for men who have vital and complete control over one sector of the industry. - Republicans believed trusts were good because the captains of the industry knew better than the politicians did on what was good for the usa.

Woodrow Wilson.

Now, let’s fill in the T-Chart: