How did the US economy change 1910-20?

1
How did the US economy change 1910-20?

• Basic Facts

2
The US economy in 1910

• By 1910 the US economy was one of the worlds
  strongest.
• Both industry and agriculture were strong.
• All classes were beginning to benefit.

• There was regular employment and steady incomes.
• The economy was on the upturn.
• However, not all Americans were benefiting...

3
Those who did not benefit

• Poor, illiterate immigrants in the cities
• Black people living in the south
• Native Americans living in poor conditions on the
  reservations

4
Impact of the First World War

• USA had been reluctant to enter the war and did
  not join until 1917.
• This benefited US industry and agriculture as
  they were able to supply war-torn Europe.

5
Consequences of WWI

• US firms able to make technological advances like
  Bakelite (plastic).
• Development of mass production speeded up
  production and lowered costs.

• US farmers sold surplus produce to Europe.
• US banks lent money to Europe.
• Businessmen invested in western European firms
  for future profit.

6
Consequences of WWI

• In the months after Nov 1918 many of the US
  soldiers returned home.
• US factories, which had been expanding to cope
  with supplying the war, were now shedding jobs.
• This led to UNEMPLOYMENT.

7
Consequences of WWI

• Employers began to refuse demands for wage
  increases as they knew they could replace workers
  easily.
• However, living costs had risen substantially
  since 1914.
• 1919 wave of strikes across the country. Fear of
  Communism and racial tensions increased.

8
1920

• Beginning of economic recession
• By 1921 over 5 million were unemployed.
• BUT slowdown did not last long.
• By 1922 the economy was showing signs of
  recovery.