...because after the war people felt happy and started buying everything on credit. They also started to increase production on everything and since they started buying everything on credit it created problems because people were on debt. After World War I for a few Years in the 1920s the United Sates enjoyed a period of real and broadly distributed prosperity. Families purchased their first automobile, radio and refrigerator, and they began going to the movies regularly. And suffrage, after decades of political activism, succeeded in getting approval of a constitutional amendment in the 1920s that gave women the right to vote. It also brought a feeling of freedom and independence to millions of Americans especially young ones. Young soldiers returned home from the war with new ideas. Many young Americans, both men and women, began to challenge some of the traditions of their parents and grandparents. For example some young woman began to experiment with new kinds of clothes. They no longer wore dresses that hide the shape of their bodies. Instead they wore thinner dresses that uncovered part of their legs. They had seen a new world in Europe. They had faced death and learned to enjoy the pleasures that...
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...money instead of just buying on credit. “If you don’t have any money, you should not buy anything. Hmm…Sounds interesting.” The wife sarcastically remarks. “Sounds confusing!” The husband replies. As funny as it was, it still made a great point. American’s have a problem with buying things on credit but not having the money for it. My financial literacy class always taught me to have an achievable goal and save your money. Ever sense I was a little child, I have been taught to save, save, save, and plan for any expenses I may need. My parents also taught me the difference between a need and a want. They taught me to only buy things on credit if it is a necessity like a car, college, house, etc. I try to always keep their advice in the back of my head, but I’ve noticed a different path that buying on credit provides. Buying on credit is a type of borrowing but you may suffer a grave price if you cannot pay back your bill in full each month. The nation previous to 1929 became caught up buying luxury items on credit and borrowing money to invest in the stock market. It seemed harmless enough, the idea was that one could repay the loan when they sold their stocks and because of so much buying, people were making a lot of money. Stores were selling plenty of goods which in turn made the stocks rise. But at some point, all good must come to an end. People could no longer buy things because they had spent all of their money trying to pay off their enormous credit. Inflammation started...
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...The Booming Roar of The Canadian 1920’s Many Countries go through the business cycle throughout their history, and prosperity is the part of the cycle that truly roars. In 1920’s, Canada, the great prosperity roared, and it was great for all. Everything in Canada roared by 1924 and life was extremely satisfying for the average Canadian, as quality of life was at an all- time high. The future for Women began to appear to be very bright as they made many big steps for the purpose of women’s rights. There was a great deal of women who began to get involved with government. Therefore, the Canadian government recognized the change beginning, and the growing number of women who were starting to make a stand for their rights, and consequently creating...
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...The following were reasons why American industry boomed in 1920’s. i. The Impact of the car ii. Credit iii. Policies of the Republican Party. Which of these reasons do you think was the most important? Explain your answer referring only to the three points stated above. (10) I think the most important reason why the American industry boomed in the 1920’s was the impact of the car. Ford was the first car and it was founded in 1903 by Henry Ford in Detroit, Michigan but it business really boomed from 1918 onwards. The first car produced was the ‘Model T’. Its first cost was $1200 but by 1928 it was reduced to $295 meaning it was affordable for all families so most people’s quality of life was improved. Due to the low prices and the new technology of the car, it appealed to lots of families meaning mass production was to occur to have the supply to meet the demand consequently leading to more employees for cheap prices doing small jobs. Not only did the car supply all of this but in the mid 1920’s Ford cars consumed 90% of petrol, 80% of rubber and 75% of plate glass which increased other industries profits too triggering the boom. All of these factors...
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...America in the 1920’s The Boom Period During the 1920s there was a prolonged boom in the American economy. Industrial production doubled, the economy grew rapidly and fortunes were made. Life had never seemed better for the majority of the American people. The boom developed for a number of reasons. World War I The European economies were exhausted by the cost of waging a long war. In comparison, the USA grew rich during the war years. Its late arrival to the war, and the fact that its cities and industries were not bombed or destroyed during the conflict, meant that at the end of the war it was able to capitalise on the perilous state of European industry and dominate their markets. New technologies The first 20 years of the twentieth century saw huge technological advances in industry. Factories became automated. Machines and other improved manufacturing techniques meant that huge amounts of goods could be made at a fraction of the cost. The age of mass production had arrived. In the decade of the 1920s economic output increased by a staggering 50%. Consumer boom Because goods could be produced in greater numbers and at much lower prices, more people were able to afford them. This led to huge increases in the sales of products such as cars, refrigerators, radios and cookers. Buying on credit This consumer boom was greatly aided by the availability of hire purchase - the ability to buy goods on credit. Because times were good, people were not worried about...
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...It’s called The American Dream, it’s where people’s hopes and dreams laid. The American Dream was first publicly introduced by James Truslow Adams in Epic of America, in 1931. Adams proclaimed that he wanted everything better and richer and fuller for everyone. The American Dream in the 1920’s was to capitalize on the Booming Economy, to rebel against social and legal expectations, and to embrace the “New Women”. The Booming Economy was a wild success and had people walking all throughout the night! Because of the investors investing in stock markets and margins, people saw the stock market as a short term investment rather than a long term investment. This was where people got the idea that buying stock and auctioning it...
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...The 1920s were a decade characterized by great change. Even though it was the decade after world war 1, it was almost 10 years of improvement for many Americans. Industries were still thriving in America and they were actually richer and more powerful than before World War I. So what event made the 1930’s so different? The Great Depression quickly turned those carefree years into ones of turmoil and despair. The decade after the first world war ever saw tremendous change. Progressivism was a leading factor of World War 1 and in the 1920’s the evidence can be seen. Industries were making their products at an increasing rate. Products that were not popular before World War I were now used by millions of Americans. Cars were only used by about 9 million Americans and by the end of the roaring 20’s that number had reached over thirty million. Also many new inventions were created making life for Americans much easier. Radios, vacuum cleaners, irons, washing machines, and refrigerators were the new electronics that everyone had to have. Refrigerators allowed for better production and transportation of food products. This allowed you to keep food cold and fresh making exporting food a valuable part of the economy. These new inventions were making home life easier for men and women. Not only were American families buying these new items but they also started purchasing stock in companies at an increased rate. Buying stocks was available before the war but was not really done. Soon...
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...The effects of the “Boom”- USA 1920s The 1920s was a time in America of extreme changes in society as well as in lifestyles and industries. New inventions were made. It was the time when the USA experienced its Boom, but what was the Boom, and did everyone gain of it? During the Boom USA underwent huge changes. It was experiencing a decade of a great business boom in almost every industry. New Jobs were created because things like radios, TVs Hoovers, washing machines, refrigerators were produced. Since the people were employed they could spent more money, and simply buying something had a major economic impact. It was all a circle. Someone had to produce what was bought meaning people were employed, he would then earn money for his work and usually spent some of it, buying goods produced by someone else introducing that someone into the cycle. Henry Ford also noticed that the demand for his cars rise, which lead to him producing more cars. As a consequence he introduced a whole new production way, called mass production. Mass production is the creation of many products in a short period of time, it’s a technique that aims for low unit costs and high output. Other industries took up his system and shopping habits changed as chain stores like Woolworth established. So people bought cars which caused an overflow in cars in the traffic system. Highways were built amongst them the famous Route 66. The Highway is also known as “the mother road” it runs through the USA, from Los...
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...THE GREAT DEPRESSION AND THE STOCK MARKET CRASH An Introduction The stock market crash The stock market was created on 1792 to allow stocks and bonds to be traded “bought and sold”. A “stock market crash” is the steep fall of the prices of stocks due to widespread financial panic. America experienced an era of great peace and prosperity during the 1920s. After World War I, the so-called “Roaring Twenties” economic and cultural boom was fueled by industrialization and the popularization of new technologies such as radio and the automobile. Air flight was becoming common as well. The Dow stock average soared throughout the Roaring Twenties and many investors aggressively purchased shares, comforted by the fact that stocks were thought to be extremely safe by most economists due to the country’s powerful economic boom. Investors soon purchased stocks on margin, which is the borrowing of stock for the purpose of gaining financial leverage. For every dollar invested, a margin user would borrow nine dollars worth of stock. The use of leverage meant that if a stock went up 1%, the investor would make 10%. Unfortunately, leverage also works the other way around and amplifies even minor losses. In 1929, the Federal Reserve raised interest rates several times in an attempt to cool the overheated economy and stock market. On Thursday, October 24th 1929, a spate of panic selling occurred as investors began to realize that the stock boom was...
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...of excess but cannot resist the temptation. In particular, it is the dangerous attraction to wealth and excess in the 1920s that will lead to the most devastating economic crash in world history. And even in more modern times, including the 1980s, the excessive habits of the modern world will be a bitter reminder of how toxic superfluous wealth can be. Plato may have lived more than two thousand and five hundred years ago, yet his insight on the perils of decadence will continue...
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...How far were the policies of the Republican Party the main reason for America’s economic success in the 1920’s [50 marks] Although America remained neutral and did not join World War One until 1917, they were already increasing their country’s profits by selling goods such as: weapons, food, equipment and other ammunition to both sides of the war. During World War One, as well as selling goods, America became ‘the banker’ to the rest of the world: loaning countries money at a very high interest. According to the First World War commissions “Britain, France and Italy owed the USA $22 billion plus interest”, this is showing that USA was at a very stable place financially even before the 1920s began. When the war ended Woodrow Wilson put forward his 14 Points which included a League of Nations. The League of Nations’ overall aim was to prevent war from breaking out again. America’s congress at the time decided that it would be best for America in the long run not to join the League of Nations because, congress believed that the USA should not interfere in any European or world affairs. Refusal to join the League of Nations made America an isolationist country. When Warren G. Harding won the presidential election and became president in 1921 a political party called the Republicans took over from the Democrats and the American government. 1920s America was known as the ‘Roaring twenties’ because of the entertainment and the crazes sweeping the country. There were lots of...
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...How far were the policies of the Republican Party the main reason for America’s economic success in the 1920’s [50 marks] Although America remained neutral and did not join World War One until 1917, they were already increasing their country’s profits by selling goods such as: weapons, food, equipment and other ammunition to both sides of the war. During World War One, as well as selling goods, America became ‘the banker’ to the rest of the world: loaning countries money at a very high interest. According to the First World War commissions “Britain, France and Italy owed the USA $22 billion plus interest”, this is showing that USA was at a very stable place financially even before the 1920s began. When the war ended Woodrow Wilson put forward his 14 Points which included a League of Nations. The League of Nations’ overall aim was to prevent war from breaking out again. America’s congress at the time decided that it would be best for America in the long run not to join the League of Nations because, congress believed that the USA should not interfere in any European or world affairs. Refusal to join the League of Nations made America an isolationist country. When Warren G. Harding won the presidential election and became president in 1921 a political party called the Republicans took over from the Democrats and the American government. 1920s America was known as the ‘Roaring twenties’ because of the entertainment and the crazes sweeping the country. There were lots of...
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...rapidly, fueled by industrialization and the rapid development of new technologies such as the automobile, electricity, telephone, aviation and radio. Many people and businesses began investing in the stock market at this time. The stock market is the organized trading of stocks. The owning of stocks gave people partial ownership of a company while infusing cash into the company. In return, people earned money on their investment as the company grew. The stock market provides financial support required by large business to establish and expand their enterprises. This in turn allows companies to grow and increase employment, provide a community tax base, and other financial benefits for the people and the economy. In the 1920’s the stock market boomed. During the 1920’s people were enthusiastic and more willing to take risks. They brought this attitude to the stock market, causing stock prices to increase exponentially. However, the severely overpriced and unaffordable stocks and willingness of the people to carelessly invest their money lead to one of the darkest days in U.S. history: October 29th, 1929. This is the day the stock market crashed, known in infamy as Black Tuesday. The stock market crash of 1929 was caused by numerous flaws in economic policies and actions taken by banks and investors. This major collapse would eventually be a key factor in the Great Depression. The end of World War I was an exuberant time around the world. The economy was strong and most everyone...
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...the economy directly. That is quantitative easing (QE). The way the central bank does this is by buying assets - usually government bonds - using money it has simply created out of thin air. The institutions selling those bonds (either commercial banks or other financial businesses such as insurance companies) will then have "new" money in their accounts, which then boosts the money supply. It was tried first by a central bank in Japan to get it out of a period of deflation following its asset bubble collapse in the 1990s. Prior to 2009, QE had never been tried before in the UK. Is this printing money? These days the Bank of England does not have to literally print money - it is all done electronically. However, economists still argue that QE is the same principle as printing money as it is a deliberate expansion of the central bank's balance sheet and the monetary base. How does it work? Under QE a central bank purchases government bonds from private sector companies or institutions, typically insurance companies, pension funds and High Street banks. This increased demand for the government bonds pushes up their value, thereby making them more expensive to buy, and so they become a less attractive investment. This means that the companies who sold the bonds may use the proceeds to invest in other companies or lend to individuals, rather than buying any more of the bonds. The hope is that with banks, pension funds and insurance firms now more...
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...Through Mel Scotts’ work of the 1912 San Francisco movement the various plans to create a greater San Francisco proved surprisingly difficult. It consisted of San Francisco trying to obtain control of its own water front from the state by pointing out advantages that would add to the city by merging with the neighboring communities. Some of these were part of Alameda County which included Berkeley, Oakland and Piedmont that would become outer communities of San Francisco. It seemed like San Francisco was trying to function as the Manhattan of New york through its advances to merge with the outer communities. One of the reasons why San Francisco was anxious for the participation of other communities was the extensive cost involved in the Hetch...
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