Did All Americans Benefit From the Boom? (Cambridge (CIE) IGCSE History): Revision Note

Summary

The benefits of the economic boom were not experienced by all Americans. In the main, white people who lived in cities and who were already comparatively wealthy benefitted most. For many groups, such as Black Americans, Indigenous Americans and women, life continued to be a struggle. 

Who benefitted from the boom?

• Americans who were male, white and already wealthy were the ones who benefitted most from the boom

• Business owners saw an increase in demand for their goods, which increased their profits

  • Many of these profits were reinvested in the business; for example, by developing new products, hiring new workers and opening new factories

  • Often, this led to even greater profits, increasing the personal wealth of the business owners

  • Business owners also benefitted from lower rates of tax, thanks to the policies of Republican presidents

• Members of America’s urban middle class also benefitted from the boom through dramatic improvements in their standard of living

  • Mass production and hire purchase schemes meant that many consumer goods suddenly became available and affordable

  • Ownership of items such as cars, washing machines, refrigerators and vacuum cleaners completely changed how people lived their lives

  • Thanks to these devices, people had more time to enjoy leisure activities

• The stock market continued to rise throughout the 1920s

  • This meant that people who could afford to buy stocks and shares saw those stocks and shares increase in value

  • Investors in the stock market benefitted from selling shares at a higher price than they had purchased them for

Who did not benefit from the boom?

• The benefits of the boom were not experienced by all Americans, and 60 per cent of families still lived below the poverty line in 1929

• Black Americans who lived in the rural south suffered greatly in the agricultural slump that followed the First World War

  • Many moved to cities in the north to find jobs

  • They often found work in the lowest paid sectors and were the last to be hired and first to be fired

  • They were also forced to live in slum areas in overcrowded, poor quality housing

• Indigenous Americans had been forced to live on reservations during the late 19th and early 20th centuries

  • The land on these reservations was of poor quality and unsuitable for growing crops

  • They had little access to education or medical care, and many lived in extreme poverty

• Recently arrived immigrants were not welcomed by many Americans during the 1920s

  • They were frequently discriminated against, and only the lowest paid jobs were usually available to them

• Although some wealthy, white, upper-class women experienced an increase in wealth and opportunity during the 1920s, most women did not

  • Women continued to be paid less than men for doing exactly the same jobs

  • They were forced to work low-skilled jobs for long hours

  • They were also expected to cook and clean and to raise their children