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Why was there a boom in the USA in the 1920's?

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Introduction

Why was there a boom in the USA in the 1920's? The economic boom in America was the sudden increases in economics. The economics of America was America's money. Businesses grew because they were selling more goods, and making more money. Because of increased demand and increased production, companies had to employ more people. This means that more money was available to spend. With more money to spend, there were more increased demands for goods and then the cycle starts again. This is the 'cycle of prosperity'. There were also many new products in the 1920s, such as cars and fridges. This created more jobs. I believe that the cause of the economic boom was WW1. ...read more.

Middle

The tariffs protected US businesses from competition. The Republicans kept tariffs as low as possible because of this everybody had more money and they would buy American goods (because they were cheaper) or invest it in the American companies. More Americans also invested money to buy shares in companies as they had more money. With these policies came confidence. Because people were confident they weren't worried about investing in businesses because they were confident about getting it back. Another contribution to the boom was the new technologies in America. Americans loved new products such as the cars and fridges. And because of these products loads more jobs were jobs were produced. ...read more.

Conclusion

Motor cars seriously affected the boom because thousands of jobs were being produced. Not only were jobs being created to make the cars but there were thousands of jobs created for other companies such as, gas stations and roadside diners. All the causes of the boom can be linked together in the Cycle of Prosperity. This is where more people have more money and because of advertising they spend it on goods. People also had more money because of the low taxes. Then more goods need to be made and this was done by mass production. Mass production was only able to occur because they had the right materials readily available, this was because of America's natural resources. The cycle then starts all over again. This was because it was a cycle that kept buying and selling which meant the economy kept booming. ...read more.

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