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

Were the policies of the Republican Governments of the 1920s the most important reason for the boom in the USA?

Extracts from this document...


were the policies of the republican governments of the 1920?s the most important reason for the economic boom in the usa? The Republican government?s policies were a major contributing factor to the economic boom because of the fact that they led to an increase in businesses and people willing to go and get jobs. However, this was not the most important reason as it was the post- World War I (WWI) situation of USA which led to the economic boom in the 1920?s. It led to USA dominating world trade and became a leading superpower. Consumerism was very important in the economic boom it led to people buying loads of materials and technology. This contributed greatly to the US economy but, it was fuelled by credit given by banks and confidence as this led consumers to believe that the boom will last forever and that they could buy what they wanted and pay for it later. Firstly, the Republic government had implemented many policies which all led to changes into government intervention. The first policy that the republican government believed in was the policy of ?Laissez Faire?. ...read more.


Moreover, USA lent out money to the nations during the war ($9.7 million) and after the war USA made a lot of money through interest contributing to the economic boom. Additionally, the recovering nations bought much needed supplies from USA such as food and water leading to a much larger income for the USA. Also, the recovering nations could not maintain their trade routes which allowed USA to take over major European trade routes and hence gain access to a much wider global market and dominate world trade hence leading to the boom. By 1920 most US exports had tripled than before the war. This strong position of the USA meant that consumer confidence grew in the USA and more people felt that the boom would last forever and hence they could spend as much as they like. Therefore, the increase in the consumer confidence meant that more people were willing to spend money because of the fact that they believed that they could pay it off later because they will maintain their income and revenue. ...read more.


goods as they were no longer a luxury hence there was greater spending by the US population contributing greatly to the boom. Also, the consumers had a great amount of confidence in the country and this meant that they spent all of their savings and bonds to get new goods as they believed that it would save them a lot of time as shown by the adverts. This contributed to the boom as the government was able to get a lot of money through indirect taxes and the businesses became much wealthier therefore increasing the overall wealth of US. Overall, the policies of the Republican government were an important reason for the economic boom as they encouraged more businesses and businessmen to set up in the US. However, it was not the most important reason as the fact the US was in such a good position after WWI to dominate world trade and be wealthy meant that the boom was inevitable. Consumerism and confidence go hand in hand as they both contributed to the boom and to each other however it was not as significant as the WWI ...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 ...

    Another important factor was the confidence the Americans had after that time. The positive outcome from the war increased the confidence of the American population, in addition to the new Republican pro - business policies, resulted in them investing and buying new goods.

  2. (Q1) Describe some of the key features of Americn society in the 1920's?

    Since gangsters made a huge profit from speakeasies and various other activities, they could afford to dress expensively and look more glamorously. Hollywood started to show this all of this and encouraged more of the public to believe that drinking alcohol was great.

  1. The USA

    Its members provided shelter for crops and helped to reduce soil erosion by planting approximately 200 million trees. After that the Federal Emergency Relief administration was set up to help the poor. It gave government funding to local government to provide emergency help for the poor.

  2. Features of the boom

    The entertainment industry grew rapidly, especially in the cities. The cinema was first invented and had already sold 100 million tickets a week by the end of the twenties-which is more then cinemas in the UK make in a year nowadays.

  1. Causes of the boom

    Electricity was taken to most American cities. This had a positive effect on the boom because lots of people were willing to pay for it and more and more people wanted it. By 1929 almost all urban homes had it.

  2. America in WWI

    Wilson warned the Germans that he would hold them responsible if any American ships were sunk. This threat was tested when on May 7th, 1915 when the Lusitania was sunk. The Lusitania was a luxury ship that was carrying 1 257 passengers- 159 of them American and 168 we infants and children.

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

    * In the 1920s, people had more money, and women had more free time, due to new technologies. Women were used in adverts as it appealed to both men and women. Fridges could be used to keep food cool, so you didn't have to go to the shop every single day to buy more food.

  2. Were the Republican policies the main reason for prosperity in the 1920s?

    Further reasons why Republican policies helped increase prosperity was due to them allowing trust to exist. Trust helped to boost the economy because workers were trusted to do their job and make something that would make their country proud. Also this helped to increase prosperity as the politicians didn?t tell

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