The source shows how much more technically advanced it was compared to the rest of the world by showing that even the farmers could afford and did listen to the wireless. This shows people how modernised America was becoming. Not only did people have luxuries in the house hold but the Americans owned the most cars (81%) while its population overall in the world only reached 6%.
This source shows how the Americans lived a more privileged and modern life. The Americans could afford things like sugar and silk where they used over a quarter of each! These things were seen as luxury and the idea that America consumed a substantial amount. This source shows the contrast of life styles and technical advances of America compared to any other place. This is a very pro American source and would have generated a lot of pride amongst Americans.
3) When you study Source 3 on share prices, it is possible to draw two conflicting conclusions. What are they?
Source 3 shows the dramatic increase in share prices in a very short time span of three months. Most of the shares doubled or more .
The conclusions are that the shares will continue to rise or that they will start to drop at an alarming rate.
How prosperous were the prosperous 1920’s?
During the 1920’s the American industry had expanded during WW1 because they found themselves making arms and uniforms as Britain was occupied buy the war. By the end of the war the USA had actually benefited from the war economically. The USA was owed large sums of money which were loaned to the allies all of which had interest. This allowed investors to re invest in America. Also since America had huge resources of raw goods and materials a high tarrif was placed on foreign exports which meant that more American goods were bought since they were cheaper.
One of the greatest prosperities of the 1920’s was in consumer goods. People were encouraged to buy more through persuasive advertising. People could also now afford more luxuries which they couldn’t during the war since they earned higher wages and due to the boom. Also there was a hire purchase scheme which allowed people to but things that they usually would not be able to afford. When mass production was introduced the prices of cars and other goods fell dramatically, for example the price of a car fell from $850 to $290.
People’s standard of living improved and people were able to enjoy themselves. There was a good supply of American produced food and more people could afford to but their houses through mortgages. Money was not only generated through consumerism but though entertainment. People were prepared to spend money to have a good time. Jazz music was increasingly popular and people would listen to the radio, but above all it was the age of the cinema. The cinema bought in a lot of money world wide since the films were silent and so there was no language barrier.
People found that they were able to invest into shares and since the profits of the industry went up, so did the share prices. However not everyone was able to enjoy this new prosperity. There were many people who did not receive the effects of the ‘boom’. Farmers, black Americans, unemployed and people who earned low wages.
During WW1, the farmers had to increase US exports by 300% to Europe but by the end of the war, the Europeans began to recover their agriculture and thus began to produce their own food. This lead to the US being hit by over production and since their were high tariffs, many foreigners did not but American produce.
The industrial workers also missed out. They soon found that they were being replaced by machines. Also despite profits rising by 800%, the workers wages only rose by 8%. Many immigrants found that they suffered discrimination.
The black Americans suffered racism. They had a poorer quality of life as there was apartheid and segregation from whites. Due to the Jim Crow law, they also found that they could not vote. Many blacks were exploited by the white landowners.
Despite an increase in the economy, 60% of families were still below the poverty line. They suffered low wages and did not benefit from consumer goods. The Boom was also based in the city so the people in the rural areas did not benefit. At least half of the Americans did not benefit from the economic boom.
Overall the 1920’s were prosperous but only if you were in the city and worked in the right places. I think that the rich benefited more. During this time, the divide between the rich and poor grew. Statistically the US was prosperous, but if you start to look at the people as individuals you find that many of the problems were just averaged out.
