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DESCRIBE THE MAIN ASPECTS OF THE ECONOMIC BOOM IN THE USA IN THE 1920's?

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Introduction

DESCRIBE THE MAIN ASPECTS OF THE ECONOMIC BOOM IN THE USA IN THE 1920's? After World War One, America became a very rich country. For eight years between 1921 to1929, there was a boom in the American economy. During this period business did very well, sales increased, profits increased and shares rose. Even ordinary Americans were investing money in the stick market hoping that their shares in the companies would make large profits. This was called the Economic Boom. The American economy was in a powerful position at the end of World War I. Countries that could not buy weapons; ammunition and food from Europe were forced to buy American goods during and after the war. ...read more.

Middle

Mass production created a lot of jobs: this was because businesses such as Ford were making more and more products. New industries prospered and produced high quality goods, rapidly and cheaply. Workers salaries increased and the average standard of living increased as well. This meant that people with no particular skills or experience could get a job as jobs were widely available and meant that unemployment level kept falling. People were gaining money not only through their normal work, but also though speculation in the stock exchange. Firstly, the increase in production of motor cars meant the number of people owning cars increased thus more roads and infrastructure had to be built. ...read more.

Conclusion

A further effect of mass production meant that a very high percentage of people had cars and could not get further put of the city and thus in time new roads became better necessitates to be built and improved. Mass production created a domino effect on other industries being produced. Selling millions of goods to a mass market needed new techniques of advertising. Posters and magazines all told the US public, in glowing terms, about the new goods on offer As radios were produces, music was more widely listened to, radio stations developed and companies and stores would advertise new products on these stations, therefore enriching new costumers into buying new products, this then aided business to grow. Cities became bigger as more and more people moved out to the new suburbs. Also American economy increased with people's spending. ...read more.

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