• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Causes of the boom years in the 1920s

Extracts from this document...


´╗┐Causes of the boom years Employers were working fewer hours however were being paid more. This therefore meant industrial goods produced were also increasing. American?s had more time for leisure and more money so electrical labour-saving devices were being introduced becoming affordable by many people. Motor cars eased travel to and from work as well as for leisure pursuits. It was the golden age for cinema and sport attracted vast crowds. Reasons for prosperity: government policies Calvin Coolidge stated ?the chief business of the American people is business.? This was his government policy to let business operate as far as possible, free of regulation. Andrew Mellon and him believed wealth filtered down naturally to all classes and to ensure increased living standards for all was to allow the rich to continue make money to invest in industrial development which therefore meant more job opportunities, more wage earners, more consumption etc. ...read more.


It was the largest for commodities. Previously cars had only been for the wealthy but Ford wanted the ordinary to be able to afford one Effects of growth in car ownership: Ford thought this would strengthen traditional American values but it led to: Road deaths ï 20,000 per year By 1929, motor industry employed 7% of all workers and paid them 9% of all wages Closure of Ford ï factor to recession of 1927 Loss of business by companies providing components to Ford real problems in economy Road building: Breaking of laissez-faire ï federal government expend on road building in 1920s Federal Highway Act 1921 ï responsibility for road building to central government and highways. Construction = 10,000 miles per year by 1929 Chief Designer in Bureau of Public Roads 1936 ï roads built unfit for use because of amount of traffic Motor vehicles ï new service industries e.g. garages, petrol stations etc. ...read more.


demand: Growth in industrial production needed a continuous market in order to fuel the boom as people needed to be convinced to buy things frequently. An aspect of a campaign needed to be bought in which would differentiate between one’s product and that of the competitors to promote unique selling point. Advertising techniques worked for many consumers. Easy credit: Massive consumer boom was financed largely by easy credit facilities 1929 ï $7 billion goods were sold on credit – 75% of cars and half of major household appliances Availability of credit meant borrowers took on debts which they could not repay Influence in foreign countries: High tariffs were used to protect US markets however the government also encouraged businessmen to develop extensive interests abroad in terms of raw materials that fuelled technological developments. US exported vast amounts of manufactured products. In the 1920s with almost full employment, low inflation, high tariffs keeping foreign goods out of USA, benevolent government policies and a consumer boom the prosperity would go on forever. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level History of the USA, 1840-1968 section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level History of the USA, 1840-1968 essays

  1. Peer reviewed

    To what extent was the 1920s a major turning point in the development of ...

    4 star(s)

    The 1930s was a turning point for both trade union and labour rights in terms of new legislation being created to aid workers and unions, creating the legal foundation necessary for further growth. The greatest turning point in the period for the development of trade union rights was clearly at the start of the period.

  2. How far do you agree with this description of the prosperity of the USA ...

    Henry Ford came up with the Model T Ford, what was to become the most famous car of the 1920s. It was quite a slow and ugly car but the way it was produced was revolutionary. Mass production made the car very cheap and extremely quick to make.

  1. To what extent was the economic boom of the 1920s caused by the development ...

    It is therefore evident that America's involvement in WW1 was a contributing factor of the economic boom due to the money it made in selling arms and giving out loans.

  2. To what extent does a fear of Communism explain the changes in American policy ...

    Nations, further showing the hostility towards non-Americans and the fear of getting involved with another European affairs.

  1. Revision notes - the USA 1945 to 1980

    Education He also increased funding for universities, which helped the middle class. But he also passed the Elementary and Secondary Education act in 1965 which put money into education in poor areas. For the first time large amounts of money went to state schools.

  2. Prohibition - The Importance of January 16th 1920 to the US.

    v. United States. George Carroll was under investigation for mass transportation and distrubutation of liquor. Undercover police officials set up a faux alcohol deal but it was never completed.

  1. The US economic boom of the 1920s was primarily due to the motor manufacturing ...

    Easy credit need to be accessible for people so they could borrow money and buy goods such as Ford?s cars so therefore this indicates that easy credit was more responsible than the motor manufacturing industry in assisting with the US economic boom in the 1920s as without easy credit, very few people would have been able to buy Ford?s cars.

  2. The Great Depression, causes and effects.

    In the 1930?s people were hesitant to migration, they preferred to stay around areas and people they knew and family. This tells us the severity of the storms. Increased unemployment meant a further decrease in expenditure in the economy and thus leading to a loss in aggregate demand.( http://useconomy.about.com/od/criticalssues/p/The_Dust_Bowl.htm)

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work