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How Far Did the US Economy Boom in the 1920s?

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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.

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