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. US investors and bankers did well out of the war, so they had money to invest in new American industries. Furthermore, while the Europeans were busy fighting, the United States took over many of their markets, like the chemical industry for instance, in which Germany had been the former world leader. There are many reasons and aspects for the economic boom in the USA in the 1920s. Some were more important than the others. However the main aspect was mass production. It was what started the boom. Jobs were available and many of the people didn’t have to be skilled to get them. Also it was easier to get consumer goods such as radio, cars and refrigerators. 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.
