To link with the First war world is Technological change, the fact that the war helps speed up the changes. Plastics like Bakelite were developed effectively for the first time and were used in new household products. There were also other technological developments like, automatic switchboards, glass tubing, conveyor and concrete mixers, these helped modernise existing industries and develop new ones. Through one of the biggest developments was that of electricity. Electricity provided a cheaper more efficient source of power for factories, also it led to the productions of new consumer goods such as refrigerators, vacuum cleaners and radios.
Mass production was a new technique which meant things could be built faster and cheaper so the product was cheaper to buy. One of the first people to used this was Henry Ford in the assembly line, become it would cost more and take a longer time for a person to build the car, but after the assembly line it cost less to built and it took less time to build as the car would move along the assembly line and people would add bits on to the car. Mass production meant that thousand of ordinary Americans could afford the products like the car.
Mass Marketing was an important things as mass produced goods needed to be sold, and unless nobody know about the good what they do, how much they cost and where to buy them the system would have collapse. Company spend huge amount of money advertising, this new industry developed sophisticated techniques to persuade people to buy. With also the expansion of the mail order companies gave consumers in the countryside access to the wide range of goods on offer.
Credit also played an important roll in the boom, as it allow people to buy things on credit, meaning that people who could not afford to buys things out right could pay by instalment or hire purchase.
Confidence amongst Americans was sky high, meaning they had confidence to buy goods, invest in companies and try new ideas. Confidence is a vital ingredient in any economic boom.
The policies of the Republican Presidents, the republican pro- business policies encouraged the boom. They lowered taxes on income and company profits, giving the wealthy more money to invest in American industry and buildings, and people more money to spend on American goods. They put tariffs on imported goods. This made imports more expensive compared with American made goods and thereby helped American producers. They didn’t interfere in business or put any controls on financial institution.
The economic boom in the 1920s was helped by many factors like that American had a huge number of natural resources that they come out of the first world war being the world biggest supplier and taking business away from European companies, and along with the war there where technological changes which American was the first to jump on, they use and become the first companies in mass production and the assembly line, mass marketing was used to sell the goods, credit was used so people who could not bug the goods out right there and then could buy then on hire purchase, the fact Americans had the confidence to buy and invest and that the Republican Presidents had laissez faire approach to business and other issues. The economic boomed in the 1920 due to all of these but all was not good in there economic.
