| An economic boom is a period of time of | growth and prosperity. Often goods will become more valuable |
| One of the four main factors allowing for a 'boom' in the US economy | Credit |
| As a result of WW1, the USA went from being | a debtor nation to a creditor nation. |
| In 1921 the credit extended by the federal reserve was $45.3 billion | in 1929 this had increased to $73 billion. |
| Between 1921 and 1929 average wages rose from $1,308 | to $1,716 a year |
| In 1920 there were 312 department stores, by 1929 | there were 1,395. |
| Speculators would often buy shares “on the margin” This meant | borrowing money to buy shares and selling them at a profit. |
| Free market individualism means | hard work, and the importance of family in meeting the daily needs of life |
| Laissez-Faire means | a policy of minimum governmental interference in the economic affairs of individuals and society. |
| Tariffs | are an additional tax placed on goods made outside of the country |
| The Fordney McCumber Act 1922 | protected American factories and farms from foreign competition. |
| In 1913 Henry Ford developed | the assembly line |
| Henry Ford sold a cheap car to the American people called | the model T |
| The population of the USA grew from 31 million people in 1860 to | 105 million by 1920 |
| From 1898 to 1902, a wave of mergers consolidated 2,653 independent firms into | 269 large-scale corporations, called "trusts" |
| G.N.P. stands for | Gross National Product, which is the term for the total value of goods and services produced by a nation. |
| The first moving assembly line was created by | Henry Ford in 1913 |
| By 1929 | 1 out of every 9 jobs was in an auto-related [vehicle] business. |
| New Consumer Goods: | vacuum cleaners, refrigerators, toasters, coffee makers, stoves, radios |
| Electrification: | the process of powering by electricity [homes/factory's] |
| Before the 1920s Americans were happy buying products on credit. | false |
| Buying on credit increased in popularity during the | 1920s |
| Installment plans: | a person pays a small down payment, takes home the item and pays off a little each month. |
| Speculation Boom: | People borrowed money to buy shares in companies listed on the stock market |
| 'buying on the margin' | borrowing money in order to purchase shares in the hope that an increase in value results in a quick and easy profit. |
| The growth of the automobile allowed for the | growth of suburban communities. |
