Why Was There an Economic Boom in the 1920's
HISTORY
Why was there a boom in the USA in the 1920’s?
There are many factors that contributed to America’s economic boom in the 1920’s. Resources where essential at this time in USA, this was because many new products and items were being produced for the consumer. Natural resources like coal; minerals, oil and land were in great store and were a great help as a basis for further expansion. The First World War was another factor as the USA supplied Europe with many goods during this time and even overtook the European overseas markets. Technological change was hastened during the war and is another factor to USA’s boom. Technological developments like new automatic switchboards, glass tubing, conveyer belts, concrete mixers and electricity helped modernise existing industries and develop new ones. This new technology led to the production of consumer goods like refrigerators, vacuum cleaners and radios. This started the factor of mass marketing. Goods could be produced more and more cheaply on a large scale; this meant that these produced items could be sold much cheaper therefore more would be sold. Mass production obviously led to mass marketing, mass produced goods had to be sold at a mass market. So these companies spent huge amounts on advertising to sell the goods, if people didn’t know about the goods why would people buy them? Without the buyers the whole system would corrupt. The growth of credit made it easier for consumers to buy products even though they may not have had the money; this helped with the production industries. Confidence was another key factor to the boom without confidence in Americans most of these factors may not have worked so well, goods would not be sold, people would not want to invest in companies or try new ideas. Lastly the pro-business policies of the republican presidents encouraged America’s boom, these included the lowering of taxes on income and company profits, placing tariffs on imported goods and the fact
Why was there a boom in the USA in the 1920’s?
There are many factors that contributed to America’s economic boom in the 1920’s. Resources where essential at this time in USA, this was because many new products and items were being produced for the consumer. Natural resources like coal; minerals, oil and land were in great store and were a great help as a basis for further expansion. The First World War was another factor as the USA supplied Europe with many goods during this time and even overtook the European overseas markets. Technological change was hastened during the war and is another factor to USA’s boom. Technological developments like new automatic switchboards, glass tubing, conveyer belts, concrete mixers and electricity helped modernise existing industries and develop new ones. This new technology led to the production of consumer goods like refrigerators, vacuum cleaners and radios. This started the factor of mass marketing. Goods could be produced more and more cheaply on a large scale; this meant that these produced items could be sold much cheaper therefore more would be sold. Mass production obviously led to mass marketing, mass produced goods had to be sold at a mass market. So these companies spent huge amounts on advertising to sell the goods, if people didn’t know about the goods why would people buy them? Without the buyers the whole system would corrupt. The growth of credit made it easier for consumers to buy products even though they may not have had the money; this helped with the production industries. Confidence was another key factor to the boom without confidence in Americans most of these factors may not have worked so well, goods would not be sold, people would not want to invest in companies or try new ideas. Lastly the pro-business policies of the republican presidents encouraged America’s boom, these included the lowering of taxes on income and company profits, placing tariffs on imported goods and the fact