• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

How far did the American economy boom in the 1920(TM)s?

Extracts from this document...

Introduction

How far did the American economy "boom" in the 1920's? After the First World War America became richer and their economy flourished due to demand during and after the war, which brought America into what was called the 'Roaring 20's'. Their GNP grew from $78 billion to $103 billion between 1919 and 1920. The "boom" was the product of new attitudes and ideas in America. With their newfound confidence America was more willing to invest in new products and take risks. This meant the revolution of new technologies. Mass production techniques were discovered which influenced the motor business making a tremendous impact on economy. It employed thousands of people and stimulated the growth in other industries such as metal, glass and rubber. However, in 1929 the depression hit the USA. Due to encouragement of taking out credits, loans and shares companies became bankrupt which left Americans in debt and unemployed. By 1920, America was the largest Industrial power. Big Businesses were 'booming', there was a high consumer demand and there were new technological advances. ...read more.

Middle

The successful economy gave people more time and money for leisure. However, the good economy didn't benefit everybody. Due to the advancement in agricultural machinery many labourers (often Black) and sharecroppers lost their jobs. (Three-quarters of a million lost their jobs during the 1920's) Many went north into the cities to seek new jobs. However, industries such as car industries only hired a small amount of blacks and many industries had enforced an all-white policy. Most black women could only get low-paid jobs as servants in white households. Thirty million people in America earned their living through farming and between 1920 and 1930 the number of farms declined. This was because of low crop prices (which benefited large companies and American consumers) as too much food was being produced. Poor earnings meant farmers could not keep up with high rent and big mortgages, which left many farming families in unhygienic conditions of squalor and poverty. These are examples of how the economy though "booming" in some prospects affected the lives of people lower down on the financial ladder. ...read more.

Conclusion

As taxes were lowered and gave more people money to spend, it meant there was a higher demand in products, which made companies richer therefore giving them the advantage to give out credits meaning people could buy things they could not afford. However, the economic "boom" did not benefit everyone. Farmers, blacks, working class men and new immigrants often had to face the consequences of the cheaper prices and over producing. Cheaper prices meant cheaper labour, which meant labourers were not being paid enough. Crop prices were cheaper as they were being over produced, which meant farmers could not pay their rent or mortgages which gave them poorer living conditions and they could not pay their labourers who then had to find new jobs. America's "boom" was big if short, and it benefited many. However, it was short-lived and even when at its peak it still did not benefit everybody. So in conclusion, I can draw that America's "boom" went quite far as many businesses and Americans prospered from it but it did have bad consequences, which made it hard for those in poverty and worse when the depression came. Hazel Platt 11M6 1 Hazel Platt 11M6 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE USA 1919-1941 section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE USA 1919-1941 essays

  1. USA Boom

    Like industry shares were booming, this provided extra finance for industry and helped big businesses prosper further as well as making the investor richer. The Republican attitude was to interfere as little as possible in business and let people handle it the way they saw fit, the result of this was a richer and happier America.

  2. FDR Research Paper

    It also provided guaranteed loans for homes, farms, or businesses, and it also gave unemployment pay for up to 52 weeks. (National Video Resources) When FDR was in office, many well known war events happened. On December 7th, 1941, Japan bombed the United States Naval Base, Pearl Harbor, in Hawaii.

  1. The Boom in the US. There are many reasons why it was called the ...

    After the opera season ended, the station owners saw the need to diversify their programming. They began broadcasting things like popular music, classical music, sporting events, lectures, fictional stories, newscasts, weather reports, market updates, and political commentary. Radio stations like KYW enhanced a sense of community among different ethnic groups

  2. The Illinois and Michigan Canal

    But by the end of 1836 almost all had failed to raise enough money to begin construction. After much haggling in the state legislature "An act to establish and maintain a General system of Internal Improvement" was approved on February 27, 1837.

  1. Did all People Benefit from the Boom

    Newspapers became filled with articles about sport, fashion and film stars. These articles became the most popular and through the 1920 period made up most of the content of any newspaper or magazine. Because of the demand by the public for news and gossip, newspapers and magazines were sold worldwide.

  2. The boom, good or bad?

    And the number of 'well off' millionaires over tripled! As well as the import rate going down and the export rate going up meaning America was spending less and bringing more money into the government. This all shows that the 1920s were a good time and this is what they

  1. 1920's America enjoyed such a prosperity that it became known as 'an age of ...

    sign of 'the American dream' and people began to compete for the best models. This meant the need to build those, cars, roads, roadside diners and advertising as a tertiary industry, created more jobs. Due to peoples need to spend their money Department stores and supermarkets became popular and bigger and better stores were made.

  2. Why did the American Economy

    The increase and the shear scale of US markets meant that there was another continuous source of income for the US economy. Britain and France were almost dependant on American help following the war, but this meant that their markets almost dissolved and so America seized the opportunity and took control of their markets as well.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work