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USA 1919 - 1941 Coursework, Question No. 2, Why was there an economic boom in the 1920s?

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Introduction

USA 1919 - 1941 Coursework, Question No. 2, Why was there an economic boom in the 1920s? This essay will investigate why there was an economic boom in the 1920s. It will lead you through the reasons why there was an economic boom and how they were linked to cause the economic boom as a whole. Lady Liberty that stands proudly in New York says, "Give me your tired, your poor, your huddled masses yearning to breathe free. The wretched refuse of your teeming shore. Send these, the homeless, tempest-tossed to me. I lift my lamp beside the golden door." After the war, this was America's statement to the world. It told people everywhere that if they were unsatisfied with life they could come to America, the 'Land of Opportunity,' for a better life. This statement caused millions of immigrants to horde over to America. They became the fuel America needed for its boom by working to improve America's economy. ...read more.

Middle

This meant that whilst all these countries had been devastated, American industry was thriving from all the sales they had made. America's industry had become the largest in the world and had created a huge European market which kept pouring money into the American economy. The war had strengthened the American economy greatly, along with the plentiful natural resources in America to be used by the industry. The bountiful amounts of money that the American economy had, paved the way for advances in technology. The use of electricity to its full potential was the main advance that boomed many other technological advances. Electricity was in most homes in America and 70 percent had electric lighting. Factories were increasingly being run on electricity and overall the electricity consumption had doubled in the 1920s. This had paved the way for a whole range of domestic goods such as cookers, fridges, vacuum cleaners, washing machines and radios which now were in such a large scale that had never been seen before. ...read more.

Conclusion

America's economic boom was carrying on and on. Every boom had created other booms, and this had continued to happen all through the roaring1920s. This had created many new businesses and strengthened current business which in turn created less unemployment, which created a richer population, who then were most likely to reinvest into American goods due to the tax on foreign goods. Confidence in American Economy grew and firms were offering to loan money to the population. This gave more money to Americans which they either spent on goods which strengthened the economy or they invested it into stocks which strengthened the economy also. All of these things contributed in the economy increasing rapidly which in the end produced a self generating economy. This self generating economy had caused American economy to be in a time of great success and all the factors which I have explained during this essay contributed to this Self generating economy. ...read more.

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