Summary
Summary CIE IGCSE History Paper 4 USA Depth Study Notes
- Course
- Institution
CIE IGCSE History Paper 4 USA Depth Study Notes: -> Fully Comprehensive -> Detailed -> Clear and Concise -> Grade 9
[Show more]
Seller
Follow
johnnyslimmon
Content preview
Topic 1: How far did the US economy boom in the 1920s?Background:
- Emerged as richest nation in the world after WW1, as not affected much
- Between 1922 and 1929 GNP increased by 40%
- European countries became buyers of US goods (their own countries destroyed)
- US banks lent out almost $10m USD in loans to Europe
- American businesses expanded globally as competitors struggled with post-war recovery
Why did the Economic Boom Occur?
USA’ natural resources and Industry:
o Plentiful natural resources and raw materials such as iron, coal and oil
o USA could expand rapidly without relying on imports – affected by WW1
o Massive export market
o Able to supply demand and activity in manufacturing
o The motor car industry used 75% of US glass, 90% of petrol and 80% of rubber
production
o Successful wells fueled supply for motor industry
o Lucas Well in Spindlehop, Texas produced around 1.1 million barrels for nine days
before being capped
o By 1919, the USA produced 2/3 of world’s oil at 577 million barrels - export
Mass Production:
o Made goods cheaper and facilitated the rapid, large-scale production of new
technologies
o “Assembly line”- increased efficiency and lowered costs making good more affordable
o In 1911, Ford Model T cost $1100 and by 1928 just $200
o Motor industry would stand on MP – 7% of employment
o Large-scale development of new technologies as much cheaper to produce, such as the
vacuum cleaner and washing machine
o In 1929, 160 million electrical goods sold, increased productivity
Easy Credit:
o Allowed public to buy and pay back
o Facilitated consumer liquidity and demand with mass consumerism
o 60% of car sales by 1928 purchased on credit
o Companies made huge profits from interest payments
o Credit outstanding totaled $3 billion in 1929
Republican Policies:
o Low Government Interference:
Lower taxes and less regulation
Aided large businesses
By 1929 – largest 200 corporations possessed 20% of the nation’s wealth
“trickle-down” Economics
From 1919 to 1929 – workers made 26% more on average
, Stock market trading boomed
o Tariffs:
Fordney-McCumber Act - 1922
Fee on imports
Encouraged American consumers to buy goods produced in USA rather than
abroad
Made foreign goods more expensive – guaranteed domestic markets
Confidence:
o Created a consumer society
o Speculation – buying on the margin
o By 1929, there were 20 million shareholders out of 120 million population
Motor Car:
o Industries benefitted – entertainment with access to cinemas with new roads and gas
stations
o Growth in suburbs and sports, nightclubs and the cinema
o By 1920 – 7.5 million cars – promoted building of highways
o In 1922, 16,500 km roads built at a cost of $189 million
o Benefit trade and the transportation of goods and resources
New Industries:
- High demand for new consumer goods
- Motor Car Industry – over 26 million cars made by 1929, Ford and Chrysler made huge profits
- Steel and Oil – 20% of steel production could be attributed to the motor industry by the mid
1920s
- Construction Industry – new homes, factories and school – new skyscrapers like the Empire
State Building late 1920s
Traditional Industries:
- Overproduction and competition with new technologies
- Textiles like cotton and wool struggled to compete with synthetic fibres like rayon
- Coal, tin and copper were overproduced after the end of the war and prices dropped rapidly –
coal was replaced by gas and oil + lack of demand from Europe
- Mechanisation and machinery meant fewer workers needed
- 42% of population living below poverty line
Farmers:
- 1912-1929 profits decreased from $22 billion to $12 billion
Overproduction:
- Mechanisation + improved fertiliser meant more produce – overproducing wheat so prices fell
dramatically
- Wheat prices fell from $2.50 a bushel in 1920 to 38 cents in 1929
Falling Demand:
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller johnnyslimmon. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.92. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79650 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now