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

To what extent was the economic boom of the 1920s caused by the development of mass production methods?

Extracts from this document...


Economic Boom. To what extent was the economic boom of the 1920s caused by the development of mass production methods? The economic boom resulted from many factors, including mass production methods which resulted in the great increase in the prosperity of the American economy. This created thousands of jobs for Americans and provided the poor with appliances and money they had never experienced before. Prosperity within sectors of the economy such as the automobile industry and the policies of the Republican government meant that the economy was further boosted and with Americas involvement in the First World War, the country was increasing in wealth and power. Some historians argue however that some of the factors were more influential than others and some argue that some of these factors did not actually lead to the economic boom. The development of mass production methods is a significant factor when explaining the causes of the 1920s economic boom. These methods resulted in cheap, more efficient manufacture of goods which was largely standardised. This meant products could be produced quicker and for cheaper so that more people are able to buy them. ...read more.


However due to the damage the war caused to the receivers of the loans, America were unlikely to be paid back quickly. It can be argued overall that the war played a more significant role than the introduction of mass production methods due to the improvement made on the economy being more significant. The Republican government polices in America in the 1920s also played a significant role in the economic boom. The government adopted the policy of laissez-faire, one in which there is little government intervention in the lives of the people, which enforced the idea that businessmen, if left alone, could turn out higher profits and believed that more jobs and higher wages would be the result. They restored free enterprise after their intervention during the war which allowed more competition. This meant lower prices on goods and therefore more sales were made, boosting the economy. The government also made attempts at balancing the budget by cutting government spending down to equal the amount raised in revenue in taxes. This meant that more money could be kept and spent and therefore the economy benefited. Also, the government fuelled the boom further with introductions of higher tariffs through the Fordney-McCumber Act in 1922. ...read more.


Also, due to America's involvement in WW1, they made billions of dollars in selling arms and giving out loans to the Allies when in need, meaning they put a lot of money into the economy suggesting that it is arguably more influential than the mass production methods. However, due to the damage the war caused in Europe, many of the countries were unable to pay back the loans immediately meaning the US were losing out on money rather than gaining. Due to the policies of the American Republican government, the country was better off in many aspects with them balancing the budget and raising tariffs on foreign goods, improving the economy. However countries counteracted this by raising tariffs on American goods, damaging the economy and the governments significance is limited due to the focus on the higher classes. Also, with the introduction of credit, the economy was fuelled as more people are able to buy goods they otherwise would not have been able to afford, however the possibilities of people becoming over-stretched or losing their jobs were apparent and therefore it was arguably not as influential as mass production methods. Overall, the significance of the mass production methods is clear, however other, some arguably more important, factors were an influence. ...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. How far do you agree with this description of the prosperity of the USA ...

    However by 1929 20% of the nation's wealth and 40% of wealth generated by business activities was possessed by 200 corporations. Cartel companies were generated to fix prices and holding companies were set up by the massive corporations to dictate input and output price levels.

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

    This showed the lengths people would go to in order to rid America of Communism. However, faith in Palmer was lost due to his warning of a May Day demonstration not being carried out. It was evident that the Bolshevik threat had been exaggerated, therefore suggesting a further change in American policy.

  1. History essay on the boom in america in the 1920s

    However as this borrowed money adds up the economy is put under more and more pressure as only so much money can be borrowed before money has to start being paid back. Another big factor of the boom was the expansion and innovation of the car industry which Henry Ford monopolised during the 1920s.

  2. To what extent was Hitler's foreign policy consistent and planned?

    An understanding from Britain would have perhaps been a way of getting Germany's grievances heard and considered by the rest of the European powers who were not so willing to listen. As relations with Britain improved over the years this may have spurred Hitler on somewhat, becoming more ambitious with his foreign policy.

  1. Causes of the boom years in the 1920s

    This meant that investors would favour profit ever over ethical concerns Technical advances: Technical advances in industrial production made increases in quantity and variety of products Motor vehicle industry: This industry grew dramatically in the 1920s.

  2. Explain the factors that caused Progressivism in the USA.

    Its goal was to prohibit the manufacture or sale of alcohol. They believed the consumption of alcohol-limited mankind's potential for advancement. The middle class formed the driving force behind the movement. For example, the women who started the settlement house movement were middle class women who were educated and who wanted to do something to improve society.

  1. Wall Street Crash-The crash followed a speculative boom that had taken hold in the ...

    that of 1928, up went stocks again and from far and wide orders came to buy shares for the profits to come. Then in August the wheat price fell when France and Italy were bragging of a magnificent harvest and the situation in Australia improved.

  2. How far was the economic prosperity of the 1920s due to developments in the ...

    not as important as the First World War as it bought in more money into America. Cheap Labour was another factor which leads to the economic boom. This is because immigrants from places like Europe supplied plentiful supply of cheap unskilled labour.

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