The collapse of the European economies after World War 1 Essay Example for Free

The collapse of the European economies later World War 1 EssayDuring the course of this essay I give debate how the States was advantaged by the collapse of the European economies after World War 1. How the policies of the Republican G everywheren workforcet helped to heave up the the Statesn economy. I entrust discuss how this economic boom did not benefit every unmatchable in America and how the motor car industry helped stimulate Americas growing economy, and how highlife goods became more available in America, and I will continue with how hire purchase and credit was highly available during this time of prosperity. I will outline who did and who did not benefit from this booming economy, besides how reversals in U.S. policy occurred during 1919-1922. Then I will continue to explain the McCumber traffic act which issued a tariff on foreign goods entering America to encourage Americas to purchase American goods and thus helping the economy to grow further leading to an emergence in customer eliminateing. I will tell you how Woodrow Wilson introduced the League of Nations, and how the USA isolated itself from the international friendship so as to avoid conflict. I will look at how Americas vast amounts of natural resources were a contributing factor to the growth of the economy.Before the war, Germany had the largest chemical industry in the world but after the war it was significantly damaged and America took the place of the Germans in this industry, which greatly improved Americas economy. They also took over European trade. Europe was on its knees after the war so they borrowed currency from the U.S. This provided the U.S. with a good steadfast source of revenue. The American economy was running away with itself. This was due to the explosion of the car industry.Henry charm across was a car manufacturer. He came up with the idea of the first production line. This meant that different jobs were allocated to different lot and in different stages, meaning production was more effective. The car industry used up to 80% of Americas steel 75% of the glass in the U.S. and 65% of leather and rubber. By the end of the mid-twenties, the motor car industry was the biggest industry in America. It also employed hundreds of thousands of workers directly. It kept many people in opposite industries employed.Petrol was needed to run the car which brought about a in the buff branch of businesses, which branched shoot from the car industries petrol stations, the road twist industry, motels, roadside diners, billboards and mechanic services were just some of these new businesses. Road construction was the biggest single employer in the mid-twenties. Owning a car was no longer a franchise reserved for the rich. The production line had mad making cars cheaper, so more people could afford them. on that point was one car to every five people in the USA, compared with one to 43 in Britain and one to 700 in Russia.The car made it e xecutable for more people to buy houses further from the cities. This boosted the house building industry as the American economy grew, more people spent money on luxury goods, this lead to such goods becoming more available in America and more companies making them. Telephones, radios, vanity cleaners and washing machines were mass produced on a vast scale making them cheaper. New galvanic companies such as Hoover became household names they used the latest most efficient techniques proposed by the industrial efficiency movement. At the same time, the larger industries used sophisticated sales and marketing techniques to bum around people to purchase their products.Mass nationwide advisements were used for the first time in the U.S. during the war to get Americans to support the war. Many of the people had learned their skills during the war and had instantly set up agencies to sell cars, cigarettes, raiment and other products. Poster advertisements, radio advertisements and t ravelling salesmen encouraged America to spend. Even if they did not have money people could now borrow it easily or they could take advantage of the new buy now pay later hire purchase schemes. By this time, the car industry was flourishing the most famous car produced was the model T. More than 15 million where produced between 1908 and 1925. In 1927 they were produced at a send of one every ten seconds.In 1929, 4.8 million cars were made. The boom in the American economy was helped by the republican policies from 1920 to 1932. All the U.S. presidents were republicans and republicans also dominated congress. Republicans believed that government should interfere as little as possible in the everyday lives of the people. This attitude is called laissez-faire. They believed the job of the president was to leave the business to the businessmen. The republicans believed in effect tariffs which made it dear(predicate) to import foreign goods. For example, in 1922, Haring introduced the Fordney-McCumber tariff which made import food expensive in the USA. These tariffs protected businesses against foreign competition and allowed American companies to grow even more rapidly.The USA also began closing its borders to foreign immigrants. Taxation was kept as low as possible this brought some benefits to normal working people. But it brought even more to the rich. The republicans thinking was, the more money people had, the more they would spend in America and the wealthy would re-invest in America. They also allowed the development of trusts. These were huge super-corporations which dominated industry. Woodrow Wilson and the democrats had fought against trusts, because they believed it was unhealthy for men such as Garnegie (steel) and Rockefeller (oil) to have almost complete control of one vital sector of industry.The republicans allowed the trusts to do what they wanted, believing that the captains of industry knew better than politicians did. However, this time of prosperity in America was not felt by the whole population. Farming was at a low point. The total U.S. farming income dropped from $22 billion in 1919 to just $13 billion in 1928. There where a number of factors that contributed to these problems. After the war, Europe imported less food from the U.S. This was partly because, Europe was poor and partly due to the tariffs which stopped Europe from trade to the U.S. farmers were also struggling against competition from the efficient Canadian wheat producers. The population of the U.S. was falling which meant at that place where fewer mouths to feed. At the route of all these difficulties was overproduction.This resulted in wheat being produced which simply nobody wanted. In the 1920s the U.S. farmer was each year producing enough to feed his family and 14 others. Prices dropt dramatically as desperation kicked in and farmers tried to sell their produce. Most farm prices fell by 50 per cent. Hundreds of rural banks collapsed in t he 1900s and there were five times as many farms going out of business as there had been in the 1900s and 1910s. Not all farmers were affected by these problems. Wealthy Americans wanted fresh vegetables throughout the year. For most farmers, the 1920s were a time of great difficulty .and this was a major concern. About half of all Americans lived in rural areas the difficulty affected more than 60 million Americans. Lots of Americans lost their jobs, these where largely unlearned workers, mainly immigrants.