The population continued to urbanize (50% in 1920 and 56% in 1930). This revolutionizes the housework. In 1930, the American population was urbanized at 56%. They were paid less than men doing the same job. Since 1922, with the Gold Exchange Standard, it served as a reserve currency for all countries of the world. It was replaced by a poor population formed by blacks fleeing racial segregation in the southern states. He set about realising his dream by producing his early cars in small workshops. The apartment buildings with a few floors were abandoned by the wealthy population. They took protectionist customs measures that reduced imports of foreign products likely to compete with US products (especially in agriculture, chemical, textile, and metallurgical industries). More were liberalized, new ways of dressing and living were adopted. The “old Americans” reproached them for introducing ideas, such as unbearable Catholicism to a society dominated by Protestantism. > Economic Boom 1920s. As a result, the majority of Americans could afford expensive goods. Although some women were better off and 25 per cent more women were employed by 1929, most women were poorly paid, especially in the textile industry. The car industry is the best example of mass production during the period. School History is the largest library of history teaching and study resources on the internet. As a result of the development of factories to produce consumer goods for the American people, the demand for electricity doubled. The birth rate, although declining, remained strong (19 births per thousand inhabitants). He had groups of men working for him and gradually the cars were built. Catalogue shopping also became fashionable as it was a convenient way of buying goods. To supply the metal sheets necessary for the bodywork and metal parts, steel production almost doubled between 1921 and 1929. The United States owned 60% of the world’s gold stock by then. America's economy boomed in the early 20th century. Three major companies dominated the sector: General Motors (which had gathered many small manufacturers), Ford and Chrysler. He had groups of men working for him and gradually the cars were built. They went into debt to modernize their farms during the First World War in order to supply France and the United Kingdom during the war. to a number of factories, eg refrigerators, washing machines, vacuum cleaners and radio sets. There, poor rural people could be hired at a good price. The territorial conquest at the expense of the Amerindians was completed. They installed agencies everywhere that collected American savings. To absorb this enormous production it was necessary to increase the revenues of the Americans. Women gained their material independence through wage labour. Henry Ford was a pioneer with his idea of producing affordable cars for the people of America. But this remained insufficient. More and more Americans were using the bank credit that allowed them to consume a lot. Immediately after the war there was a small slump but from 1922 the USA experienced an unprecedented economic boom. This meant that a person could buy something by paying for it on a monthly basis. Aluminum, which requires a large amount of electricity for its manufacture, increased in production as a result. economy was given a substantial boost due to the car industry. It was made possible by a strong financial investment to build new factories and equip them, but also to use new methods of work. The new immigrants were thus forced to stay in the cities. They are also looked to get closer to new energy sources like Texas oil. Cities were expanding and changing in appearance. However, these changes did not shake a part of the population who remained attached to the traditional practices. Because of this, immigrants endured more and more prejudice from white workers. Immigrants were accused of taking jobs away from already established workers and accepting low wages. There were also those rural folks who were uprooted by agricultural crises that had occurred since 1920. This led to wages dropping for other employees. In order to encourage Americans to take advantage of the scheme, advertisements were placed on roadsides, on the radio, in newspapers and in cinemas. He set about realising his dream by producing his early cars in small workshops. These resources were an important foundation for the economy. It also met the growing demand of the population. This meant that a person could buy something by paying for it on a monthly basis. This made them live beyond their real financial means. In order to encourage Americans to take advantage of the scheme. Electricity developed slowly before the war but during the 1920s the electricity industry experienced a huge boom. The thirst for consumption promoted economic development but also lead to a huge waste of materials and space. Because of this, immigrants endured more and more prejudice from white workers. By quotas based on ethnic origin, they hardened the conditions of entry of immigrants to “dry up” the arrival of Italians and Slavs, while promoting the entry of British and Germanic. The production by American industries had increased. Many bosses, following the example of Henry Ford, increased wages. The production of vehicles multiplied by 3 from 1921 to 1929 to reach four million eight hundred thousand vehicles annually. Therefore the entire economy was given a substantial boost due to the car industry. Those who remained for lack of sufficient income did not enjoy the material benefits of the economic boom. As a result, the majority of Americans could afford expensive goods. In order to obtain cheaper labour force than that of the old industrial regions of the Northeast and the Great Lakes, companies relocated to the southern states. The workers earned good wages ($5 per day), thousands of jobs were created, roads were built, petrol stations were built, as were hotels and restaurants. Read about our approach to external linking. What were the causes of the economic boom experienced in the 1920s? Electricity allowed the introduction of household comfort in homes. Recent immigrants (those who arrived since the beginning of the century) were facing the hostility of the settled Americans. The war also provided a stimulus for inventions in production, materials and advertising. Electricity also allowed the development of new leisure. Most were still employed in roles such as cleaners and waitresses. The car industry is the best example of mass production during the period. Bank deposits (whose customers could withdraw their money at any time) became merchant banks lending to businesses. After the war of 1914-1918, a puritanical and xenophobic reaction began in 1921 and 1924. It was based on the significant use of new energies (oil and electricity) and on the mass production of new products (in particular the automobile and electrical appliances and motors). US banks loaned money to Europe and businesses sold much needed goods. This enabled America to become a huge economic power at the beginning of the 20th century. The small size of the electric motor allowed it to operate vacuum cleaners, washing machines and refrigerators. American women were granted the right to vote in 1920. Immediately after the war there was a small slump but from 1922 the USA experienced an unprecedented economic boom. Republicans were in power from 1921 to March 1933. Petroleum products allowed the development of the automotive industry to take place at a very first rate. Our team of exam survivors will get you started and keep you going. This outstanding activity is designed to help students review / assess who benefitted from the US economic boom in the 1920s by reviewing a series of character cards either in pairs or groups. However, the contribution of immigration decreased. Weaknesses in the American economy became more apparent as the 1920s progressed. In order to help American people to purchase the new goods that were available, systems of. While creating new trades, the automobile favoured the migration of those who were better off to the suburbs and created a new urban landscape (paved roads, road signs). People who benefited from the boom People who did not benefit from the boom; Owners of consumer goods factories: Workers in traditional industries (coal miners, textile workers, ship builders) This was the beginning of the industrialization of the South. Labour was readily available for the American industries due to a large number of urban population. Key Facts & Summary: The economic boom occurred in the United States. At best they remained as agricultural wage earners, at worst they had to go to the cities where they hoped to find work. The condition of women was changing, at least in cities. It was as a result of the second industrial revolution in America. Oil began to dominate coal (the main energy of the nineteenth-century industrial revolution), even though it still provided three-quarters of energy consumption. Henry Ford's hard work bore fruit. was a pioneer with his idea of producing affordable cars for the people of America. Electricity developed slowly before the war but during the 1920s the electricity industry experienced a huge, . After WW1 the situation was reversed and the former Allies owed America more than $10 billion for the cost of armaments and food supplies. Immigrants provided a plentiful and cheap work force to utilise these resources. It introduced laws that restricted the number of immigrants (coming from Europe and South America).