Other
To what extent was American prosperity in the years 1900 to 1929 ‘superficial and fragile’?
- Course
- Institution
An essay plan for the US Economy from 1900 to 1929, includes counterpoints for each point.
[Show more]
Seller
Follow
surathsanwal
Content preview
To what extent was American prosperity in the years 1900 to 1929 ‘superficial andfragile’?
FOR:
Para 1 - Much economic growth was due to the stock market and hire purchase credit
schemes.
➢ Values of stocks and shares rose readily.
➢ The amount of buying and selling shares grew substantially.
➢ The USA began to speculate.
○ 1926 - 451m shares
○ 1929 - 1.1bn shares
➢ Up to 25m Americans involved in the stock market.
➢ Easy credit - invested and many lost money.
➢ Provided opportunities for confidence, tricksters, and crooks.
○ E.g. Charles Ponzi conned thousands of unsuspecting people into investing in
his ventures. The Florida Land Boom - began to sell parcels of land.
Hurricanes in 1926 resulted in the Florida Land Boom collapsing.
➢ Lack of regulation in the stock market encouraged more and more speculation.
○ 1925 - stock market value at $27 bn.
○ 1929 - stock market value at $89 bn.
○ 1929 - 20m shareholders in the USA.
Para 2 - Availability of easy credit
➢ Growth of credit made it easier for people to buy goods.
➢ ½ the goods sold in the 1920s were paid for by hire purchase.
➢ Easy credit policies were encouraged by the Federal Reserve Board.
➢ 75% if purchase prices were shared.
➢ Growth of credit made it easier for people to buy goods even though they did not
have the cash for them.
➢ Firms arranged for customers to pay on hire purchase.
Para 3 - There was falling demand for consumer goods.
➢ Construction boom came to an end in 1928 slowing down spending and investment.
➢ Great boom in car ownership slowed sharply and industrial production fell.
➢ Fall in demand due to unequal distribution of wealth.
➢ Almost all Americans had an income of less than $2000 a year (the minimum needed
to survive).
➢ The US had high tariffs and couldn't sell surplus products to other countries as
Europe owed the US money.
AGAINST:
Para 4 - consumerism grew rapidly for reasons other than just hire credit.
➢ Increased demand
➢ 1927 - 2/3rds of US homes had electricity.
➢ The amount of oil used doubled and gas quadrupled.
➢ Growth in female employment.
○ Increased need for labour-saving devices.
➢ Various advertising techniques developed rapidly during the 1920s.
➢ Companies began to employ psychologists to design campaigns and target specific
groups.
○ 1929 - companies spending $3bn annually on advertising (5x more than
1914)
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 surathsanwal. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.18. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67474 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now