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

    This proved that they could do the jobs just as well as men, and gave many women the desire and aspiration for more work opportunities. There was a change in attitude in how America saw women and there were many signs that the role of women was changing.

  1. Why was there an economic boom in the USA in the 1920s?

    Radios and refrigerators were also introduced. This allowed more efficient methods of production to be developed, to make products even more efficiently made, fuelling the economic boom further. Credit accompanied this technological change, as anyone could afford these new products on the market.

  2. Features of the boom

    All films were silent until 1927 when the first "talkie" was made. It was rumoured that women would faint at the sight of Rudolph Valentino in "the Sheik" and when he died many slit their wrists. Films had started to affect peoples social life's,and were being blamed for moral degeneracy,

  1. Causes of the boom

    By 1929 almost all urban homes had it. Some new methods helped America become rich, the most important was the moving production line (otherwise know as the assembly line). This was where the workers remained in the same position all day, adding one or two components to the products as they rolled past them on the conveyor belt, instead of one person making the whole thing.

  2. Presidents in the 1920s USA

    The tariffs protected US businesses from competition. The republicans kept taxation as low as possible because of this people had more money and they would buy American goods because they were cheaper or invest it in the American economy. More Americans also invested money to buy shares in companies as they had more of it.

  1. How did Republican policies help to stimulate the 1920s boom?

    They had a 'laissez-faire' attitude. They believed that the job of the President was to leave the businessmen alone - to do his job. That was where prosperity came from. In 1920 Warren Harding won the election after committing himself to not interfering with the economy, even though he was

  2. 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.

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