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The Roaring Twenties, The reasons for this boom were, The groups that…
The Roaring Twenties
The economic downfall
All of the economic improvements were just hiding what was truly happening
Americans went on a buying spree
Because of all the improvements in the wealth of people, the consumption of the average American increased a lot
The economical improvements were not felt by a large part of the American population, because the only ones that were benfiting, were the businessmen and the ones who could buy shares
This created a big gap between the rich, middle-class Americans, and the rest of the people, that were made up of 50% of the population
To help the poor, some things were done, like
Private charity, which were made by social workers or other people
The union of the agrarian and reforming lobby of both parties in Congress
However, this didn't work, as it just deepened the divisions between rural and urban areas
Some states established departments of public or social welfare, and increased the speding of welfare, but the effects were limited
Only this little was done, because
Republican administrators didn't think that social resposibility was not their job
It was not believed that it was the role of the goverment
People thought that because of the prosperity, the problem was going to be solved without intervention
All of this happened, because of
The weaknesses in the American economy, like the policiy of individualism, did not support the poor
The concentration of buying power in a small part of the population, affected the domestic market in the goods produced in American factories
The increase in production, as there was no proportional increase in the consumer buying power
The inability to repay debts that depended on the wages of people
General ideas
On the surface, the 20s were a time where nations were at peace, and the Americans had more than enough money
This decade represented fun and freedom, because of the free and easy life that the Americans had
This was because luxury items became everyday items for the Americans, like
Cars
Radios
Refrigerators
Vacuum cleaners
However, all of this just disguised the true things that were happening, like
The poverty of millions
The division of society
A history of
Prejudice
Discrimination
Racism
Fear of political extremism
This marked the start of the modern era, with an urban, industrial, and technological change, that was not felt by many people, because of the poverty, low wages, menial work and irregular employment
The economic boom
The Americans had an increased level of economic prosperity, because of the rise in wage levels
Calvin Coolidge took office in 1923, and was re-elected because of
His idea to withdraw the United States from international affairs
His economic policies, that favoured
A balanced federal budget
Lower federal spending
Lower taxes
High tariffs on foreign-made goods
Now, America experienced a fast economic growth, and the gross national product and the income of corporations increased
The industries that most influenced this growth were
The motor car industry, that made more people live in towns than in the countryside
The stock market, because many people started buying shares of stocks in corporations, whose values quadrupled
The reasons for this boom were
The size and economic wealth of the USA
Because of the purchasing power, and the improvement of communication, made by the new transcontinental railroads
The entrepreneurial spirit and the American dream
The search for the American dream and wealth, started because of rugged individualism that encouraged hard work and thrift
Millions searched this wealth, and so, people immigrated, and they provided cheap labour that improved industrialization
The impact of WWI
UK & Germany were practically bankrupted, but the American industry grew thanks to the demand for armament
Technological progress & "Fordism"
Henry Ford was the center of the 2nd industrial revolution, thanks to the improvement of car manufacture and its mass production
The government now had the responsibility of builiding roads, because of the Federal Highways Act of 1921
New management and selling techniques
The development of business management made the manufacturing process adopt an efficient system
The growth of the large corporation, that benefited from economies of scale and integration, improved manufacturing management
This was helped by technological developments in the
Radio
Motor car
Cinema
Government policies
The conditions for a bussiness boom were created
The Republican party was assocaited with laissez-faire economics
Republicans thought they had to create the economic climate that would make business, indsutry, and the nation prosper
Tax-cutting policies were created
Easy credit and hire pruchase
The domestic demand to buy goods improved the economy
The domestic demand increased due to
The increase of the average wage
The development of hire purchase, that made consumers buy goods at a smaller price than normal, and pay off the rest and some interest later
The new methods of advertising
Banks now lent money to businesses and individuals at low interest rates
This cheap credit allowed American people to increase their spendings
The groups that missed out from the prosperity were
Farmers
They had no chance of repaying loans
Overproduction was one of their difficulties, and it was caused by the suden fall of demand in 1929
City dwellers could not pay good prices for food
Products were sold below the cost of production
African-American population
They had been lured into the United States by wartime jobs, which did not last
This transformed areas into ghettos, like those of Harlem, Manhattan, Chicago, and Philadelphia
This, combined with the poor education, placed African-Americans at the bottom of social and economic positions
Even when they went to the north, racism made them not get good paid jobs
The only thing they could do, was jazz dancing, and boxing
Women
The number of jobs that woman could do increased, but the quality of the employment or their wages did not improve
The only places they earned good money were teaching and nursing
Trade unionists
The Red Scare of 1919 and the Palmer Raids made workers avoid this unions
Workers were encouraged to sign a contract where they agreed not to strike
The creation of a minium wage was difficulted by anti-union judgements
Native Indian Americans
They were stripped of their and, culture, and rights
They had high rates of alcoholism and crime, low life expectancy, and high infant mortality
Mikel Bracamonte