America 1920-1973Topic Summary
Topic Summary: The Economic Boom, 1920s America
Part of The Economic Boom — GCSE History
This topic summary covers Topic Summary: The Economic Boom, 1920s America within The Economic Boom for GCSE History. Revise The Economic Boom in America 1920-1973 for GCSE History with 10 exam-style questions and 9 flashcards. This topic shows up very often in GCSE exams, so students should be able to explain it clearly, not just recognise the term. It is section 12 of 12 in this topic. Use this topic summary to connect the idea to the wider topic before moving on to questions and flashcards.
Topic position
Section 12 of 12
Practice
10 questions
Recall
9 flashcards
Topic Summary: The Economic Boom, 1920s America
Key Terms
- Laissez-faire: Government policy of not interfering in business — central to Republican economic thinking
- Mass production: Making large quantities of cheap identical goods using an assembly line
- Hire purchase: "Buy now, pay later" — paying for goods in weekly instalments
- Tariff: Tax on imports to protect American manufacturers (e.g. Fordney-McCumber 1922)
- Speculation: Buying shares hoping prices will rise, not because companies earn real profit
- Overproduction: Factories producing more goods than consumers can buy — a hidden weakness of the boom
- Consumerism: A culture in which buying goods is central to identity and everyday life
Key Dates
- 1908: Ford launches the Model T — first affordable mass-market car ($850)
- 1913: Ford introduces the moving assembly line at Highland Park
- 1921: Harding becomes president; Republican boom begins
- 1922: Fordney-McCumber Tariff raises import taxes to record levels
- 1923: Coolidge becomes president — "The business of America is business"
- 1925: Model T price reaches $290 (down from $850 in 1908)
- 1929: 27 million cars on US roads; Dow Jones peaks at 381; Wall Street Crash (October)
Key People
- Henry Ford: Pioneered moving assembly line; made the Model T affordable; introduced $5 day wage for workers
- Calvin Coolidge: Republican president 1923–1929; champion of laissez-faire; "The business of America is business"
- Andrew Mellon: Treasury Secretary who cut top income tax from 73% to 25%, boosting business investment
- Warren Harding: Republican president 1921–1923; began the era of low taxes and high tariffs
Must-Know Facts
- Model T assembly time: 12 hours → 93 minutes (assembly line)
- Model T price: $850 (1908) → $290 (1925)
- 27 million cars on US roads by 1929
- 60% of cars bought on credit; 80% of radios bought on credit
- $3 billion spent on advertising per year by 1929
- Dow Jones index: 63 (1921) → 381 (1929) — rose 500%
- Top income tax rate: 73% → 25% under Mellon
- WCRAM: War, Credit, Republican policies, Advertising, Mass production