...America in the 1920’s The Boom Period During the 1920s there was a prolonged boom in the American economy. Industrial production doubled, the economy grew rapidly and fortunes were made. Life had never seemed better for the majority of the American people. The boom developed for a number of reasons. World War I The European economies were exhausted by the cost of waging a long war. In comparison, the USA grew rich during the war years. Its late arrival to the war, and the fact that its cities and industries were not bombed or destroyed during the conflict, meant that at the end of the war it was able to capitalise on the perilous state of European industry and dominate their markets. New technologies The first 20 years of the twentieth century saw huge technological advances in industry. Factories became automated. Machines and other improved manufacturing techniques meant that huge amounts of goods could be made at a fraction of the cost. The age of mass production had arrived. In the decade of the 1920s economic output increased by a staggering 50%. Consumer boom Because goods could be produced in greater numbers and at much lower prices, more people were able to afford them. This led to huge increases in the sales of products such as cars, refrigerators, radios and cookers. Buying on credit This consumer boom was greatly aided by the availability of hire purchase - the ability to buy goods on credit. Because times were good, people were not worried about...
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...was indeed the main reason why the economy boomed in 1920’s America. The interpretations that support this are A, B and C. While certainly there are other factors that are presented in all of the interpretations, I believe that the prominence of the war throughout these 3 passages support the strength of the argument. Interpretation D attributes Andrew Mellon as the main reason for the boom, but as Cannadine is the only one to do so this limits the strength of his argument. The war was the main cause of the boom as it provided the catalyst necessary to start of a chain of events that provided a huge boost to the economy. Without World War I, it could be argued that the American economy would not have boomed to the extent that it did in the 1920’s. One of the main reasons for this school of thought is an argument provided in interpretation A. Jim potter states that World War I provided an ‘impetus both to agricultural and industrial expansion’. This was because of the fact that the war brought in a need for armaments and munitions to supply the forces with, and there were many countries that could not yield the materials and products due to their lacklustre industry. America was not like these countries, and with the stimulus of the war they were able to quickly improve their industries and make these new products. As a result of this, as the historian Gary Gerstle suggests in interpretation C, America ‘had created an insatiable demand for American goods and capital.’ Countries...
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...for America’s economic success in the 1920’s [50 marks] Although America remained neutral and did not join World War One until 1917, they were already increasing their country’s profits by selling goods such as: weapons, food, equipment and other ammunition to both sides of the war. During World War One, as well as selling goods, America became ‘the banker’ to the rest of the world: loaning countries money at a very high interest. According to the First World War commissions “Britain, France and Italy owed the USA $22 billion plus interest”, this is showing that USA was at a very stable place financially even before the 1920s began. When the war ended Woodrow Wilson put forward his 14 Points which included a League of Nations. The League of Nations’ overall aim was to prevent war from breaking out again. America’s congress at the time decided that it would be best for America in the long run not to join the League of Nations because, congress believed that the USA should not interfere in any European or world affairs. Refusal to join the League of Nations made America an isolationist country. When Warren G. Harding won the presidential election and became president in 1921 a political party called the Republicans took over from the Democrats and the American government. 1920s America was known as the ‘Roaring twenties’ because of the entertainment and the crazes sweeping the country. There were lots of reasons for the economic boom including: natural resources, impact...
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...for America’s economic success in the 1920’s [50 marks] Although America remained neutral and did not join World War One until 1917, they were already increasing their country’s profits by selling goods such as: weapons, food, equipment and other ammunition to both sides of the war. During World War One, as well as selling goods, America became ‘the banker’ to the rest of the world: loaning countries money at a very high interest. According to the First World War commissions “Britain, France and Italy owed the USA $22 billion plus interest”, this is showing that USA was at a very stable place financially even before the 1920s began. When the war ended Woodrow Wilson put forward his 14 Points which included a League of Nations. The League of Nations’ overall aim was to prevent war from breaking out again. America’s congress at the time decided that it would be best for America in the long run not to join the League of Nations because, congress believed that the USA should not interfere in any European or world affairs. Refusal to join the League of Nations made America an isolationist country. When Warren G. Harding won the presidential election and became president in 1921 a political party called the Republicans took over from the Democrats and the American government. 1920s America was known as the ‘Roaring twenties’ because of the entertainment and the crazes sweeping the country. There were lots of reasons for the economic boom including: natural resources, impact...
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...Year 10 Revision Timelines: The Roaring Twenties Women Before First World War * Women could not vote. * Middle/upper class women did not work but had the role of mothers and housewives. Working class women had low paid jobs such as factory work and cleaning. * Women usually wore full length dresses, wore no make up and had their hair tied back in buns. * Divorce was very rare and so was sex before marriage. * Women did not smoke or drink in public. * They had to go out with a chaperone (a family member) when they met their boyfriend. How did the First World War change the lives of women? * During the war, women began to work in areas like heavy industry. They proved they could work as well as men. By 1929, there were 10 million women workers; a rise of 24% since 1920. * Working gave women independence and they began smoking and drinking in public. * Women were given the vote in August 1920 but few were chosen to be actual politicians. * Production of consumer goods such as vacuum cleaners and washing machines meant women had more time for leisure activities. * Flappers emerged in the 1920’s = women from middle and upper class families from the Northern States. They cut their hair in short bobs, wore make up, short skirts and bright clothes. They also smoked and drank in public, went to speakeasies, danced the Charleston with men and listened to Jazz and drove cars and motorbikes. * BUT many groups, particularly...
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...money, and limited governments from running deficits when economies needed governments to run deficits. It was a devilish device for turning recessions into depressions. The answer is that some people aren't worried about depressions. Some people are worried about inflation. 2. Who was J. Pierpont Morgan? What was his role in stopping the Panic of 1907? John Pierpont "J. P." Morgan (April 17, 1837 – March 31, 1913) was an American financier, banker, philanthropist and art collector who dominated corporate finance and industrial consolidation during his time. In 1892 Morgan arranged the merger of Edison General Electric and Thomson-Houston Electric Company to form General Electric. After financing the creation of the Federal Steel Company, he merged in 1901 with the Carnegie Steel Company and several other steel and iron businesses, including Consolidated Steel and Wire Company owned by William Edenborn, to form the United States Steel Corporation. - The Panic of 1907 was a financial crisis that almost crippled the American economy. Major New York banks were on the verge of bankruptcy and there was no mechanism to rescue them until Morgan stepped in personally and took charge, resolving the crisis.[10][11] Treasury Secretary George B. Cortelyou earmarked $35 million of federal money to quell the storm but had no easy way to use it. Morgan now took personal charge, meeting with the nation's leading financiers in his New York mansion; he forced them to devise...
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...the lesson here is still true. As we have known, America, one of the most powerful and influent countries over the world, experienced a long historical journey before it had climb to the position. However, during the heroic history, they also stumbled into some mistakes that made America faced with the humiliation. As Herbert Croly, a political philosopher stated “American history contains much matter for pride and congratulation, and much matter for regret and humiliation”. And I think this statement is totally right but not enough. To begin with, one of the highlights of US’s economy is, basically, that they know how to grab the enrichment opportunity at a right time, in right place. This expressed clearly throughout the wars. America somehow used the smart tactics that could help them remain their economic benefits. In World War I, at the beginning, America chose to follow “neutrality policy”, when they have no reason to attend in a battle that was not their. However, there were many reasons that forced US to join into the war that they undesired. In 1915, the Lusitania's sinking with the death of innocent Americans was seen that the main external reason that affected strongly US’s decision to enter the war. Undeniably, the “act of aggression” of Germany, when they tried to ignite the fight between Mexico and America, also consolidated the decision. Moreover, the internal reason, as the safety of the “democratic ideology”, was a substantial factor that made the US change the...
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...ten years and had long-term social, economic, and political effects on American society. It is still one of the greatest defining eras in US History. In general, we know what caused the Great Depression, but these causes are still debated even today. It happened after a period of great prosperity (The 1920s) when American commerce was growing. The issues that surround the causes of the depression are still issues today. Task: Using information from the documents and your knowledge of United States history and government, answer the questions that follow each document in Part A. Using your answers from Part A you will write an essay (Part B) in which you will be able to: • Discuss the following three causes of the Great Depression, o Use of Credit o Over speculation o The Federal Reserve’s Monetary (Money) policy Use the box below to organize your notes and ideas that can be used to convert into an essay. Part A: Short Answer Document #1 Ford Advertisement: 1920 [pic] Duke University Library 1. An average annual wage of all industries in the 1920s was about 1400.00 dollars a year. Many workers averaged (depending on the job) between .50 cents per hour up to 2.00 dollars per hour). How much does a worker make a month making 1.00 per hour (40 hour work weeks)? _____________________________________________________________ 2. How much would a 1920 Ford Touring cost per month if bought with an installment plan of 12...
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...costly economic crises came from the interaction of economic imbalances in the world economy and the ruling ideology of financial decision makers who confronted these imbalances. The first imbalance came from the First World War. This paroxysm of violence brought the long economic expansion of the nineteenth century to a sudden end. Britain, the workshop of the prewar world, was exhausted by the struggle. America, the rising economic behemoth, was unready to take responsibility for its new role in the international economy. Germany, having unsuccessfully challenged the Anglo Saxon powers, refused to acknowledge its defeat. The easiest way to see the imbalance is through the international movement of capital. There were many reasons why this imbalance was allowed to grow over the postwar decade, and one of the...
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...Running head: A new deal to recovery From Boom to Depression HIS105: Contemporary U.S. History May 10, 2012 From Boom to Depression The period after the civil war was a time of physical, economic, social, political and geographical reconstruction for the United States of America. The nation had experienced mark destruction by the civil war. Slaves were now emancipated and must be considered. These events were marked turning points for the country. Of these turning points, the social security act and the 19th amendment were most influential in that they initiated an act of government that is still practiced today. 1. Identify at least (2) two major historical turning points in the period under discussion. The 19th Amendment The woman’s fight for their own equality and for others was not an easy one. It can be traced as far back to the first woman’s right convention in Seneca Falls, New York in July of 1848. It was here that the woman suffrage movement was launched and the National American Woman Suffrage Association (NAWSA) was born. Some of the key sponsors for the launch were courageous women such as Elizabeth Cady Stanton and Lucretia. Contributors to the movement were also abolitionists, whose goals at the time were to include equal rights for all, including that of the Negro male. In 1870, their fight was partially won with the passage of the 15th amendment to the Constitution, thus giving the Negro male the right to vote. The passing of the...
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...Scott Fitzgerald’s stories show the demise of the “American Dream” by Demonstrating that the American class system determines your manner, Lifestyle and character 1. Introduction: Fitzgerald believed the American dream was false and distorted. 2. Stories showed the decadence of the Jazz Age but with a jaded view 3. 1920s a. About the time period b. “The Jazz Age” c. Wealth d. Social values e. Fashion 4. Works by Fitzgerald a. This Side of Paradise b. The Great Gatsby c. The love of the last tycoon 5. Symbolism a. Great Gatsby i. Green light ii. Valley of ashes (poor’s lack of values, unfaithful’s lack of morals) iii. Beat up car b. This Side of Paradise i. Speed and cars ii. Alcohol as means to forget c. The Love of the Last Tycoon i. Car ii. Sheep /people iii. Light/darkness as reality/fantasy 6. Theme a. American dream b. Class system c. Relationships 7. Conclusion The death of the “American Dream” was a notable part of the works of F. Scott Fitzgerald. His use of symbolism and extensive writings on the large gap between the social classes demonstrated why he felt this way. According to his writings, Fitzgerald was of the opinion that where a person fell in the class system would play a huge role in how the American dream played out for them. Social class in America...
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...Unites States throughout the 1930s, whose effects were spread worldwide. For this purpose the investigation assesses the significance of the crash in the stock market in relation to other factors that were also relevant. Through the selection and summary of relevant written sources, the investigation examines the 1920’s the domestic and international problems during the “prosperous” years that triggered the crisis. In order to reach a conclusion two of the sources: The Great Depression by Lionel Robbins and The Great Depression and The New Deal by Robert F. Himmelberg are evaluated for their origin, purpose, values and limitations. Word count: 120 B. Summary of evidence By the time the United States entered the First World War in 1917, the USA was the world’s biggest economic power[1]. Its role in providing extra equipment and a supply of fresh soldiers was instrumental in the final Allied victory[2]. The artificial prosperity of the war years was followed by an inevitable collapse[3]. After a short recession between 1920 and 1922, the USA began a long period of uninterrupted prosperity and economic expansion[4]. By the end of 1922 many industries were again recording capacity business[5]. When weekly wages were insufficient to purchase personal goods, credit was available to the consumer. For the businessman and the investor the twenties offered golden returns. Never...
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...behind these shifts in development. Last I will give a conclusion and where I believe Japan economy will be in the future. To understand Japan economic boom after the war you must also look at there history. Without the creation of the industrial economy during the Meiji Japan this economic growth after postwar could have not happened. To look even closer lets examine the period before called the Tokugawa period, from 1630's until the 1860's. Smith explains that "during this period Japanese economy experienced unparalleled growth and structural change" (Smith, Page 4). The system was set up on rules and obligations on all sections of society. These systems of control helped rapid urbanization. Education is also a factor in the economic development in Tokugawa period. Tokugawa Japan abapted Confucianism belief system from there neighbors China. This became important because "one of the distinctive traits of Confucianism was reverence for education and learning" (Smith, Page 5). This spread of education was dramatic. Not Macdonnell, 2 Only did the knowledge seep the upper class (such as the samurai and merchants) but in order to expand business it filtrates down to the peasants and artisans also. During this period up to forty percent of boys and ten percent of girls were educated by the 1850's. These are great numbers compared to other societies. The Tokugawa period in turn developed an economy familiar to bureaucratic direction and directed...
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...The Great Depression was the worst collapse in the history of American capitalism. Throughout the 1930s, neither the free market nor the federal government was able to get the country working again. The American people endured a full decade of almost unbelievable economic misery. While a much-feared revolution of either Communist or fascist persuasion, thankfully never materialized, Americans flirted with a number of radical alternatives to the status quo. Some of those radical alternatives faded into memory, while others were incorporated into the New Deal, where a few remain with us even today. The Great Depression plunged the American people into an economic crisis unlike any endured in this country before or since. The worst and longest downturn in our economic history threw millions of hardworking individuals into poverty, and for more than a decade neither the free market nor the federal government was able to restore prosperity. The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in 1930 and lasted until the late 1930s or middle 1940s. It was the longest, most widespread, and deepest depression of the 20th century. In the 21st century, the Great Depression is commonly used as an example of how far the world's economy can decline. The depression originated in the U.S., after the fall in stock prices that began around September...
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...forward, we need to look to the past. The country’s economic history is like all history, meaning that it examines and observes the past activities of mankind (Fite 4). The most significant periods in the United States economic history are actually the three centuries before England settled in America. There were four changes happening in Western Europe that have greatly influenced America. Those changes were economic, political, religious, and intellectual (Fite 15). So why were these changes so important? They were the reasons that England decided to explore and expand in the western part of the world. The decision to expand trade and commerce was the most important advancement in the history of economics (Fite 15). From the time that the Virginia colonies were settled in 1609 up until 1890, farming was the most important aspect of the United States economy (Fite 30). Although manufactured products were worth more than products produced on a farm for the first time in 1889, farming was how the majority of Americans made a living (Fite 30). Despite the fact that agriculture dominated in these early years and the industrialization of the colonies was well under developed, “there was a high degree of specialization in the colonial economy” (Fite 63). For example, there were tobacco crops in the southern colonies which were crops that produced money, and in the northern colonies there was international trade with other continents (Fite 63). All of this called for a well-organized and...
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