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The Roaring Twenties - Coggle Diagram
The Roaring Twenties
Why was America so wealthy?
Economic wealth and size of America
The US had a great purchasing power
They had a large market of goods
They owned a lot of raw materials
Coal
Iron
Oil
Lead
Tin
Copper
Lumber
Cotton
Great material transportation
Transcontinental railroads
The American Dream
Hard working entrepeneurs motivated the American people with the idea that with enough hard work, you could be prosperous
J.D. Rockefeller, Oil Entrepeneur
These kind of first poor then rich hard working millionares convinced immigrants to come and enjoy the American dream
A. Carnegie Railroad Entrepeneur
Newly invented technology that eased the normally hard home tasks were attractive to many that wished for the same ease
WW1
During the Conflict, economic rivals like Britain and Germany went bankrupt fighting
America profited from the War by selling supplies to the Allies
Technological growth and "Frodism"
Henry Ford revolutionised the manufacturing of motor vehicles
He introduced mass production methods
He used assembly line for cars
He invented and made the Model "T" a very common vehicle amongst Americans
He managed to persuade car workers with higher rates, to not join unions and respect working policies
The Government stated the Federal Highways Act of 1921
This Act mandated the government be responsible of building roads
An average of 10,000 miles of road per year were made
The assmbly lines helped production and industrial profit a lot
Business management
Frederick Winslow Taylor thought of the idea of scientifically analyzing manufactoring processes
This would let the industrialist use one efficient system of production
This also helped the growth of large corporations
This helped the growth and popularity of marketing and advertising in the 1920s, with the help of the radio, cinema and motor car
Government policies
The Repulican party was of great help to the economic growth in America
The Government thought it had to create an economic climate where everyone could prosper, whilst not intervining with business at all
They offered multiple tax cuts that greatly benefited small and large businesses
Easy credit and hire purchase
The new management techniques allowed the industrial system to produce more for less.
There was an increase on the average wage
There was a developement of a method of hire purchase
You could buy something for a small proportion of the price and pay off later with instalments with interest
Major economic boom
Banks were happy to lend money to the local businesses
This also helped more people start their own business
What was done to help the poor?
Not much was done, the growth of wealth for the average American was of course, for themselves
Some states decided to establish departments to help those in need, this had limited results however
The only other way to gain money, was through private charity
The group of poor people was so broad, they were unable to join up and try to help themselves, they were dependant on charity of the middle-high class
The government tried to help the farmers, relieving their suffering, but instead ended up worsening the situation
The laissez-faire style of government that wouldnt tocuh businesses also prevented them from being helped
Why was mostly nothing done?
Well, the American society of the time was less tolerant and a bit more selfish than nowadays
The Government wouldn't approve of direct help, they felt social responsibility wasn't their duty to deal with, except in law and order-type affairs
At the end, most immigrants accepted their fates, and tried to do nothing to change it, poverty was inevitable
How could this happen?
The governemnt was mostly at fault
The laissez-fair type of government prevented any help to reach those in need
Businesses only sold to those who could afford
That still was a problem, given the hire purchasing methods that ended up endebting most of the population, and 80% of them had no savings
Rugged individualism was an adopted value of most Americans
This lead to the selfishness that stopped any sort of ethic porcess
What were the Roaring Twenties?
The Roaring Twenties was known as life in the United States of America from 1920 to 1930
It is considered the first modern decade, a change from the Old west and post WW1 way of life
More people started living in cities
Modern technologies were more used in daily life
Unfortunately, this era only lasted until 1929, when the Stock market crash created a lot of poverty, and there were already a lot of people already poor before the crash as well
The less industrial businesses weren't doing so good
Coal
Textile manufacturing
Farming
The American people were more wealthy, and a seemingly prosperous economic boost gave the average American a new way of life
The industry in America boomed
Radios
Electronic appliances
Cars
The industry of moto vehicles were the epitome of the economic growth
David Coolidge was elected in 1923, and given the break the American people wanted from international affairs, Coolidge's administration focused more on national economy
His reelection proved the approval of many on his economical strategies
Low taxes
Balanced federal budget
High tariffs on foregin goods
The government must stay as far away as possible from business, and let the people be
The American people and their society had changed due to WW1, and they were in a state of enjoyment and partying
The people were living carfree, but this great time of culture also included some divisive traditions within the society
Racism
Discrimination
Prejudice
Did the Economic Boom reach all the population?
The labels this era recieves can be a bit misleading however
The American population had a great wealth, but not all of them shared these riches
For the majority of the population, the economic situation hadn't become better
Farmers
Farmers had trouble repaying loans for banks, and their mortgages were almost impossible to repay
The biggest prolem for the farmers was the over-production
The decline in agricultural economic stability created amny activist groups of farmers to show their concerns to the government
Most farmers reached the point where it was unprofitable to harvest crops
The purpose of this was to try to put farm prices back to normal, given the change in wartime demand, but production was still intact, which created a grave unbalance
Most farmers didnt share the riches from the average American, per capita farm income was 1/3rd of the average citizen
The economic crash, obviously, worsened the situation of the farmers
This caused the farm produce to be sold for below the normal price,
Black people
The African-American population was one of the poorest during this era
Most Black people continued to live in the old south. They led a poverty-stricken existence, mainly as sharecroppers.
The Black people living in the cities, lived in cramped ghettos because of poeverty
Segregation of education also stuck the African-American population in poverty
Many black people migrated to northern cities, called the "Great Migration", but even then, due to racism or lack of education because of segregation, they got awful jobs, and still lived in poverty
Only some black people got wealthy off of entertainement like the growing in popularity jazz, or sports
Louis Armstrong, jazz trumpet player
Cab Calloway, singer and band conductor
Native Americans
Many Indians stayed in their low-rent miserable reservations, there was no change, and so they couldn't enjoy the newley gained wealth
Trade Unionists
Many trade unions declined
Mostly due to the increase in fear of communism
Also the clear enlargening of industrial corporations didn't allow much unions to take place
Women
Even though jobs were more available to women, the wages were terrible, and you could not have been an independent provider
Many remained with menial occupation, like maids, nursing, etc.
The sore truth is that the 1920s started with a economic instability and ended in catastrophic depression
Americans went on a shopping spree after WW1
Every economic aspect of the time grew immensely
