Introducing 

Prezi AI.

Your new presentation assistant.

Refine, enhance, and tailor your content, source relevant images, and edit visuals quicker than ever before.

Loading…
Transcript

America's Economic boom post WW1

Causes

Both of which increases demand, causing the economy to grow.

Holding back from the war

America joined the war late, this meant that America was not crippled economically by massive debt, allowing her markets to expand into other countries, thus increasing economic growth.

Wartime Loans

America lent large amounts of money to the Allies. This put America on a very strong economic footing by the end of the war.

Wages increased and prices fell

Material wealth

America was rich in fertile land, iron and other such raw materials, this allowed primary businesses to easily and quickly add wealth into the American economy.

Hire purchase readily available

This made it easier for people to buy expensive items and pay it off later in installments, thus increasing demand.

Low government interference in the economy

Effects

Traditional Industries such as boat building or coal mining already had an established client base and so were slower to expand and were pushed aside by the newer industries.

Agricultural industry collapsed.

Lower class workers / minorities did not benefit.

Income increases.

This caused the people of America to engage in mass stock speculation, the system collapsed resulting in black Tuesday.

Together these were enough to bring about the great Depression; continuing the economic cycle.

War Based

Supplying wartime countries

Returning soldiers raising demand

New Technology

}

The chemical industry created new materials such as rayon, creating more jobs required to produce them.

New electrical goods such as washing machines came into demand.

Total production of American industry increased by 50% in the 1920s.

Motor car industry grew; such as Ford and General Motors

More jobs are available; The economy grows in size.

New Industries

Prices fell due to the assembly line, the price of the Ford Model T fell from $850 to $260. While this was occurring wages were steady or on the rise.

People could afford to buy more goods, thus increasing the demand and growing the economy.

This came in the form of lower taxes and tariffs on foreign imports.

This created less competition for American businesses in the large American market and left more money for the businesses to re-invest, allowing faster growth thus boosting their economy.

Links to the Great Gatsby

The richer proportion of the population can be seen through the excessive spending and exorbitant life style of the richer inhabitants of the west egg.

_ “I’m going to give you this dress... I’ve got to get another one tomorrow.”

The ones left behind

Traditional Industries did not grow.

Roots of the depression

The Valley of Ashes and the Wilsons are both examples of the 45% of American living below the poverty line around 1929.

The tariffs on foreign goods caused countries to tariff American imports.

This shrunk the demand for agricultural goods.

The farmers produced more or the same amount.

This lowered prices and shrunk the farmers income.

Farmers earned, on average, on third of the average earnings.

Cashing in of wartime loans

USA started cashing in it's wartime loans to the UK.

UK used the wartime reparations from Germany to repay.

This backfired when the German economy hyper inflated and collapsed causing shock waves all around the world

Electricity had replaced many of the lower class jobs.

One third of all income was earned by 5% of the population.

Native americans living on reservations found it hard to make a living on such poor land.

60% percent of the population still lived below the poverty line.

The black population suffered from employment discrimination.

Learn more about creating dynamic, engaging presentations with Prezi