Question 1

What caused the economic boom in 1920s America?

Accepted Answer

The boom was caused by several factors: mass production (e.g., Ford's assembly line) lowered costs and increased output; new industries like cars and electricity created jobs; advertising and credit (hire purchase) boosted consumer spending; and government policies of laissez-faire and low taxes encouraged business investment. Additionally, World War I had left the USA as a leading industrial power, and the 1920s saw a surge in construction and stock market speculation.

Question 2

How did the boom affect different groups in American society?

Accepted Answer

The boom benefited urban, white, middle-class Americans the most, who could afford cars, radios, and homes. However, farmers faced falling prices due to overproduction and debt. African Americans and immigrants often worked in low-paid jobs and faced discrimination, while many rural areas remained poor. Women gained some independence through jobs and new consumer goods, but traditional roles persisted. The boom widened the gap between rich and poor.

Question 3

What was the role of Henry Ford in the 1920s boom?

Accepted Answer

Henry Ford revolutionised car production with the moving assembly line, which cut the time to build a Model T from 12 hours to 93 minutes. This lowered the price from $850 in 1908 to $260 by 1925, making cars affordable for many Americans. Ford also paid his workers $5 a day, which was high for the time, enabling them to buy the cars they made. His methods boosted the auto industry and related sectors like steel, rubber, and glass.

Question 4

Why did the boom end with the Wall Street Crash?

Accepted Answer

The boom was built on unstable foundations: overproduction of goods, falling demand, and widespread use of credit meant consumers were in debt. The stock market became a bubble as people bought shares on margin (borrowed money). In October 1929, panic selling began, causing prices to collapse. Banks failed, businesses closed, and unemployment soared, leading to the Great Depression. The crash exposed the underlying weaknesses of the 1920s economy.

Question 5

What is the difference between the 'boom' and the 'Roaring Twenties'?

Accepted Answer

The 'boom' specifically refers to the economic growth and industrial expansion of the 1920s, focusing on production, profits, and consumer spending. The 'Roaring Twenties' is a broader cultural term that includes the social changes of the decade, such as jazz music, flappers, Prohibition, and the Harlem Renaissance. While the boom made the roaring lifestyle possible for some, not everyone experienced the cultural excitement, especially in rural areas.

Question 6

How did advertising contribute to the 1920s boom?

Accepted Answer

Advertising grew massively in the 1920s, using new techniques like celebrity endorsements, emotional appeals, and radio commercials. Companies like General Motors and Procter & Gamble spent heavily to create demand for new products. Ads encouraged people to buy on credit, making goods seem affordable. This consumer culture kept the economy growing, but also led to high levels of debt and overproduction, which contributed to the eventual crash.

American people and the 'Boom'

Topic Overview

Key Concepts

What You Need to Demonstrate

Marking Points

Examiner Tips

Common Mistakes

Frequently Asked Questions

Before You Start

Key Terminology

Likely Command Words

Ready to test yourself?

Related Topics in AQA GCSE History

A revolution in medicine

America, 1840–1895: Expansion and consolidation

America, 1920–1973: Opportunity and inequality

Britain in the 20th century

How to Revise American people and the 'Boom' — AQA GCSE History

Key Marking Points