Why was the 1920s a period of prosperity in America?

Learning objective – to be able to explain why the 1920s were years of prosperity in America. I can describe some of the reasons why the 1920s was a period of prosperity for America. Grade D I can explain some of the reasons why the 1920s was a period of prosperity for America. Grade B I can explain and make links between the different reasons why the 1920s was a period of prosperity for America. Grade A

Starter – what do you think are the missing words from these quotes from President Herbert Hoover? A --------- in every pot, a car in every ---------. The USA is the first society to have ended ------------.

Starter – what do you think are the missing words from these quotes from President Herbert Hoover? A chicken in every pot, a car in every garage. The USA is the first society to have ended poverty.

What were the key reasons why the 1920s was a period of prosperity during the 1920s? America’s natural resources Impact of the First World War Growth of mass production Growth of the car industry Consumerism Advertising and hire purchase The economic policies of the government

What was the impact of America’s natural resources on prosperity? The USA had an abundance of natural resources – from coalfields in Kentucky to oil reserves in California and iron ore in Minnesota. This meant that the USA did not have to import raw materials to make goods leading to goods becoming cheaper as there were no import duties to industries to pay.

What was the impact of the First World War on prosperity? America did not enter the First World War until 1917. Before that it sold goods to Britain and its allies. After the war, America emerged as the richest economy in the world because many of its competitors, such as Britain and France had been hit badly by war. In comparison, USA lost only 60,000 men and was untouched by war damage.

How did mass production change industry? American businessmen were always looking for new ways to make money and Henry Ford used mass production techniques to boost production and make money in his car plant in Detriot. Mass production involved building a car which was pulled along an assembly line in a massive factory. At one end the chassis was placed on the line and it was pulled to different sections of the factory where worked placed different parts of the car building it bit by bit. This revolutionised manufacturing and sped up production. The more goods that were produced, the more jobs were created and goods became cheaper so more people could afford them.

How did mass production change industry?

How did the growth in the car industry impact on America? Henry Ford’s business plan transformed the car industry. With increasingly cheaper cars – in 1914 a car cost $850 and in 1926 it was $295 - more Americans could travel as never before. The car industry also led to the growth of linked industries, such as glass and rubber.

Why was consumerism the symbol of a prosperous America? Many industries copied Ford’s mass production techniques. Many consumer goods – such as radios – were produced like this. With more radios, telephones and washing machines – these goods became cheaper and these once thought of luxuries became commonplace in people’s homes.

How did advertising encourage more people to spend money? Many businesses encouraged people to spend money in lots of different ways – Aggressive advertising campaigns Hire purchase schemes. Growth of the department store. Catalogues

How did the government encourage more people to spend money? The Republicans were in charge of the government throughout the 1920s. It followed a policy called ‘Laissez Faire’ – meaning leave alone. The government cut taxes for businesses. Placed high import duties or tariffs on foreign goods making them more expensive encouraging Americans to buy American goods.

Task Draw a significance pyramid in your exercise book – use a whole page. Place each reason for prosperity in order of importance in the pyramid. You will have to leave one out. Once you have complete that, write on the next page a two sentence explanation for each reasons saying why you have placed it where you have in the pyramid. America’s natural resources Impact of the First World War Growth of mass production Growth of the car industry Consumerism Advertising and hire purchase The economic policies of the government

Plenary – When each side touches you have to make a link between the two hexagons. Can you fill in the blank hexagons and complete the pattern?