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What new techniques helped to create economic "boom" in the United States during the 1920's.

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Introduction

Michael Harroch 01/28/03 History By the end of the First World War America was regarded as the richest and most powerful country in the world. The period that followed WWI, which was called the roaring 20's, was a period of disillusion. The American economy enjoyed a period of "boom". This was a time of economic prosperity; people were spending and earning more. Lets see what new techniques helped to create this "boom" in the United States economy in the 1920's. These can be divided into two categories: political and industrial. First, we will talk about the new political techniques then we will discuss the new industrial techniques before concluding. One of the main factors of this economic boom was the Republican Party's policies concerning economy. ...read more.

Middle

the investor richer (it was calculated that if a man invested $15 a week in the stock market, he would become rich in 20 years). This created a large increase of business concentration (200 industries equalled 15% of the market). The new government added to a rise in production and consumption. Another short-term reason for the boom was the new industries in America. Americans loved new products such as the automobile; by 1929 twenty-three million people owned cars. This started the process of mass production. Mass production methods were pioneered by Henry Ford, it made the manufacture of goods cheaper. Henry Ford trained every worker to do a simple task as a vehicle or engine passed on an assembly line, at the end of it would be a finished car. ...read more.

Conclusion

By 1927, sixty-three percent of houses in the United States had electrical power. These new industries boomed in America, the owners of the businesses got richer and ordinary people's lives became easier as well as improving the economy. These productions were major catalysts for the boom. In conclusion, it is clear to see that the basis of a boom is production and consumption. When a country is producing and its population is consuming there is money flowing in its economy. It is also clear to see that the Republican Party and their policies and "Laissez-Faire" attitude towards business triggered this cycle. This is because they lowered taxes therefore people could spend more and they made sure they spent it on American goods. Without this, the first part of the cycle of prosperity would be non-existent. Whilst it is clear that the American economy was booming at this time, not all Americans benefited from it (ex: farmers due to the very cheap price of their goods). ...read more.

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