Without the new automobile industry, the prosperity of the 1920s would scarcely have been possible.

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History essay

Without the new automobile industry, the prosperity of the 1920s would scarcely have been possible.”

Introduction

Before answering this question we have to see what happened during the boom and what caused it.

The USA was a very big country with a vast population and it had a larger and growing home market. It had all of its raw materials within the country itself, ad so did not rely on trade. It had many new industries and technology such as cars and telephones for its country which had adopted a new phase in which Americans changed their state of mind from saving their money for a rainy day, to spending the money now to make their homes look better and be full of consumer goods. America’s Agriculture was very efficient too with the farmers producing more then they could sell.                                                                                                           The 1920´s boom was created by several factors. The presidents of the twenties were all Republicans who supported business and the stock market.. They brought in lower tax rates and raised tariffs on foreign goods so they could not compete with American business. The presidents actually let people grow trusts so people could have whole responsibility over one sector of business such as oil or coal. Woodrow Wilson had fought against this before but the republicans thought it brought prosperity                              

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America’s economy had not suffered from World War One; in fact it had been strengthened by trading arms and lending money to the allies. America also sold many foodstuffs. America itself kept itself cut off from thr worlds affairs at the moment, including the war and trading until the world war started. Then it also took over Germany’s chemical industries that Germany had to give up. America made an immense amount of money at this point.  

For the first time items like cars and refrigerators were available and affordable to the middles classes and secondary industries such as ...

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