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SUMMARY SHEETS 1.4, Boll-weevil, subsidy, 960x0-2, ecmweb_10557_electrical…
SUMMARY SHEETS 1.4
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BOOM, BUST, RECOVERY 1917-1941
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-FARMING- during the FWW farmers were given subsidies and they made profits after the wars these subsidies were withdrawn and they produced too much so prices fell.
-Higher mechanisation made many farmers go bankrupt.
-Boll Weevil gave trouble to many farmers.
INDUSTRY - there were strikes in 1919 and 1920 which caused businesses to fail.
(The decline of old industries of the north).
Eg Coal industry lost out to electricity.
In 1900 coal had produced 90% of energy in 1930s this changed to 60%
GOVERNMENT REACTION- despite the depression the government kept the laissez faire approach.
It put tariffs on foreign goods which other countries to follow suit so US exports fell.
The laissez faire did work and the depression fixed itself.
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1960S
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The Gold reserves and paper money supply were increasingly out of balance which caused a downturn in the economy and inflation kept rising.
Challenges of 1970s
In the 1970s businesses stopped expanding whilst there was still inflation.
Germany and Japan overtook America in technological development.
USA's share of export decreased by 12%.
Costs of raw materials increased which meant prices of goods was higher.
Productivity decreased.
This meant that businesses had to lay of staff.
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THE STOCK MARKET BOOM
Before the 1920s share trading was only done by banks and wealthy.
Shares could be both a long and short term investment and they would pay dividends.
The media pointed out that money could be made by 'buying on the margin'. This was taking out a loan to buy shares and making a profit from this.
The demand for shares caused prices to keep rising which caused a bull market.
Banks used people's savings to buy shares.
STOCK MARKET CRASH 1929
In 1929 the Wall Street crashed.
Those who could afford consumer already had which caused saturation.
In September 1929 stock prices were dangerously high so some investors sold.
The media alerted the public about this and people panic sold shares which caused a bear market
29th October 1929 exchange closed.
Great Depression 1929
The Wall Street crash compounded the depression as Banks went bankrupt as they had invested money into stocks.
Unemployment shot up as businesses no longer had the same value and shareholders.
This caused poverty and homelessessness for many people.
Hoover did not do enough and when he did try to pass federal action, he was blocked.
FDR AND RECOVERY.
-Roosevelt's first action was closing the banks and having the FED inspect them.
-Natural disasters limited recovery like the dustbowls and Roosevelt ran up large government debts in financing the new deal.
-The Wagner-Steagall National Housing Act oversaw slum clearing and building of low income houses.
-The Second Agricultural adjustment act provided subsidies for farmers to produce less,
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SUBURBS
The Post-War boom led builders to increase production of houses in the suburbs
The Levvit companies built pre-fabricated houses with built in labour saving devices.
'This led to Levvitowns'.
One such example of a Levvitown project is in Long Island. 17,000 houses were built for 82,000 residents.
Houses were $7,000.
However, the Levvit company did not sell to black people so this leg to black suburbs being built.
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