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Why did the USA have a boom in the 1920's?

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Introduction

Why did the USA have a boom in the 1920's? In the 1920's America had a colossal boom in industry, most called this the 'Age of Excess'. From 1921 to 1929 the USA gross national product was increased by over thirty billion dollars. This sudden change in economy occurred for a number of reasons and helped the USA gain its current title as a global superpower. The main cause for the boom in America was WW1. The allies just didn't have the resources to produce the weapons needed to continue the war effort themselves. Therefore they bought the required munitions etc. off the Americans, so as a result the Americans where being pumped full of money from the allies. This meant that while the allies fought the war and were being depleted of their wealth the Americans had a time of prosperity resulting in the USA finishing WW1 as the richest country in the world, while the of rest of the world tried to back on their feet. This meant that there was a lot more money in the US economy so new technology could be researched before any other country in the world giving America an overall advantage. The government also added to the boom by the way they did things. The Fordney McUmber tariff was introduced in 1922 which increased the price of foreign goods being sold in America making them more expensive than American products. ...read more.

Middle

People could now purchase goods on credit and pay back the amount over a period of time. This now meant that almost anyone could buy a car on credit. This created more jobs than ever and also meant that people had a much higher standard of living. The Stock market also had a part to play in the boom, because the economy was doing very well and because of the decreases in tax, company shares rocketed and people became over night millionaires. Many people started investing money in companies and most of the time they did very well and many people made their fortunes from it. But there were people who weren't so lucky. People started mortgaging their property just so they could afford to invest but when people invested in the wrong companies many times they lost their homes and all their money. The stock market was a gamble it was a 50/50 chance. You would either do very well or you would do terrible. I think that the boom was mainly caused by the USA's late entry into WW1 and the policy of 'Isolationism'. All the other factors also played minor parts in the boom such as 'Mass Production' etc. but I think the fact that during WW1 America had such vast amounts of money poured into it made the biggest contribution to the boom. ...read more.

Conclusion

Also since the fruit had to be handpicked workers were not sacked. Black people didn't prosper in the boom conditions because:- * Many of them worked on the failing cotton farms because most of them had been slaves on plantation's and so they did not how to do anything else except for harvest cotton. * Black people mostly lived in the south where other jobs were short and industry had failed to catch up with the north. * Many moved to the north were they found jobs but they were the lowest paid jobs with no hope of progression. This was simply because they were black and therefore inferior and incapable of skilled jobs. * Black people who were capable of getting higher paid jobs or those who tried were always stopped by the K.K.K. The K.K.K. was an organisation which aimed to keep black people from getting better jobs. The K.K.K. was mainly made up of low paid white people who were scared that black people would come along and work for less than they would. Immigrants to the country suffered in a similar way especially those from poorer countries with little education. They were resented for taking the jobs from white Americans who felt they were of greater value. The coat and textile industries were in decline because of new alternatives to their produce. Oil, gas and electricity were becoming more readily available and manmade fibres were cheap since they didn't rely on expensive cotton imported from India. ...read more.

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