• 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 US Economy Boom in the 1920s?

Extracts from this document...

Introduction

How Far Did the US Economy Boom in the 1920s? On what factors was the economic boom based? Why did some industries prosper while some didn't? Why did agriculture not share in the prosperity? Did all Americans benefit from the boom? In the 1920s, most countries involved in World War one were poverty-stricken and working hard to try and pay off debts from the war. However, America had only joined in the war near the end, and hadn't had to pay as much money towards the war as other countries had. Also, America had lent money to other countries, which they were beginning to get back. They were making profits from the now poor countries because they had provided Europe with guns and weapons in the war. ...read more.

Middle

There were risks that came with this; large amounts of money and power were given to normal businessmen, but it paid off because it gained America huge profits from selling to foreign firms. This policy carried on, America tried to establish Isolationist policies which would further their success because the public were persuaded to buy American goods instead of foreign. Commercial advertising was another source of profit for America; companies could now sell their goods over the radio. Not everybody benefited from this, though; the isolationist policy meant that businesses such as those that worked in foreign trade and relied on overseas market were broke, as they no longer had any business. Farmer also did very badly from this. ...read more.

Conclusion

The Boom had many downsides, though. The main problem was the Great Depression, caused by The Boom. People started borrowing money in order to buy more shares, thinking that they would buy shares cheaply and then sell them off soon after for a profit. This idea was in most people's heads, and if shares are being sold off quickly, their value decreases and so other shareholders sell until the value is almost worthless, more people sell, etc. After this, people cannot afford to buy other stocks and so their value goes down as well, with the same effect. Millions of jobs were lost, businesses were bankrupted and many people were living on the streets. By 1932, twelve million American citizens were out of work. Hayley Thompson 11D ...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. How far did the Republican Policies contribute to the US economic boom of the ...

    increased significantly because of this and the new mail - order policy companies had established. Due to the war huge technological advances had been made. This also encouraged the economic boom as plastics were manufactured for the first time and were used in the new household products.

  2. ''The boom of the 1920's did not benefit all Americans''. Explain how far you ...

    produced and mechanising production, so those who had jobs were mainly well paid, but those who did not have a job, had little chance of getting one, and could not afford to participate in the new lifestyle created my mass production of consumer goods, and couldn't afford what was being produced, even on credit.

  1. Why did the American Economy Boom in the 1920's?

    The second long term cause of the American boom was 'The American Dream'. America had a plentiful supply of labour during this time because the believed in the American dream. The American dream was that you could arrive in America barefoot and penniless and become a millionaire.

  2. To what extent did America roar in the 1920s?

    By 1920 the Klan had over 100,000 members and by 1925 it claimed a membership of 5 million. The Klan attracted fanatics who believed that American citizens should be white Anglo-Saxon Protestants. They were anti-communist, anti-Negro, anti-Jews, anti-Catholic and against all foreigners.

  1. What caused the economic boom in the 1920s in the USA?

    with financial success and takes no real account of the fact that individuals have little control over economic forces. Whilst times were 'good' though this philosophy encouraged ordinary men and women to think that the 'bubble' would never burst and that further fuelled investment in the Stock Market.

  2. How real was the prosperity of the 1920's in America?

    These figures meant that the majority of the population were unable to enjoy the boom. It was shown that the bottom 40% of the country owned only 121/2% of the nation's wealth, a number showing that real prosperity were for the few at the top of the ladder.

  1. Why did Agriculture not share in the 1920'S boom?

    The blacks were mostly employed to do the least skilled jobs in the rural areas. Of course, they lost they're jobs on farms and soon 3 quarter of million of them joined the unemployed ranks. The majority of farmers stayed very poor through out the 20's.

  2. Revision Notes - the USA in the 1920s and 30s.

    working hours Very significant-Even people in FDR's own party disagreed with him Father Coughlin Wanted to nationalise banks and introduce minimum annual wages. Thought that not enough was done for poor PWA-Wanted men in jobs Over 40 million listeners to his weekly radio talks Dr Francis Townsend Didn't think New Deal had done enough to help the elderly.

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