As well as the other factors of why there was boom in the USA, the USA had come out of the war well. It had supplied Europe with many good s during the war and had taken over European overseas makers. In some areas, US industry was now the world e.g. chemicals. The war hastened technology change which US industry seized on.
The most important reason for the boom was electricity even though it had developed slowly before the war but in the 1920s the electrical industry really boomed. By 1929 most homes in the cities had electricity and nearly 70 per cent of all Americans had electric lights. Factories were increasingly run by electricity. The amount of electricity consumed double in the 1920s. The electrification of America led to the development of a whole range of domestic goods-cookers, refrigerators, vacuum clearness, washing machines and radios. These were new industries that had not existed on any kind of scale before. Furthermore, consumers good were a major growth area in the 1920s. In the years before 1914 average annual sales were just about $4 billon; in the 1920s, they were above $7 billion.
New techniques meant that goods could be produced much more cheaply on a large scale Henry ford had pioneered mass-production in the car industry by introducing an assembly line before the war. He made cars so cheaply that thousands of ordinary Americans could afford then. In the 1920s, his ideas were applied throughout industry, particularly to the new consumer products.
The boom was dominated by the so-called 'new' industries: cars, chemicals, electricity and electrical products. Cars led the way. Mass-produced cars were so cheap that most Americans were able to afford them. The enormous increase in the number of cars created a demand for steel, glass and rubber, so these industries also boomed. The American chemical industry led the world in products like fertilisers and dyes, but was also producing new plastics and man-made fibres that had a wide range of uses.
During the 1920s the American transport system saw massive improvements. By 1930 the miles of paved road had doubled. It was not only the increasing number of cars that used these roads. The number of trucks had tripled to 5.5 million by 1929. The number of buses also increased, taking away passengers from railways. Aircraft for civil flights made their first appearance in the 1920s, making 162, 000 flights by 1929.
The American construction industry was busier in the 1920s than it had ever been before. Industrial growth created a demand for new factories. There was a boom in office building as the number of banks, insurance and advertising companies and showrooms for cars and new electrical products, grew rapidly. Even more people were employed in building roads to serve the ever-increasing number of cards. This was the age of the skyscrapers. As confidence in America soared, the big companies sought to demonstrate their power and prestige by creating ever taller and grander buildings. The great growth in wealth also saw the construction of hospitals, schools and other public buildings. Confidence amongst Americas was sky high. This meant confidence to buy goods, invest in companies and to try out new ideas. Confidence was a vital ingredient in the USA boom.
A minor factor of why there was a boom in the USA was the circulation of newspaper and magazines expanded enormously in the 1920s. In 1919 the first tabloid newspaper, the Daily News, had been published. This was followed by many others specialising in crime stories, strip-cartoon and national disasters. There were far fewer serious articles-most space was given to sport, fashion and movie starts. In 1922 ten magazines claimed a circulation of over 2.5 million.
Furthermore there was an increasing affluence and leisure time saw the growth of spectator sports which was another reason of the USA boom. In 1924 it was reported that 67, 000 people watched the football match between Illinois and Michigan at the Memorial Stadium. In 1926 some 145, 000 saw the boxing math between Jack Dempsey and Gene Tunney. But baseball was the most popular game, and its most celebrated star was Babe Ruth. Sport was a profitable business and millions of dollars changed hands.
By the 1920s Hollywood had become the film-making capital of the world and movie-going had become one of the most popular leisure purists in America. In 1920 there had been 40 million cinema tickets each week. By 1930 it was near 100 million. There was a so-called 'picture palace' in almost every town.
Film making became a mass production industry, with three films rolling off the Hollywood production line each week. Comedies were the most popular: they were made quickly and had a standard formula so that viewers knew what to except. All these early films were silent; 'talkies' arrived at the end of the 1920s.
Mass-produced goods have to be sold to a mass-market: if enough people do not know about or buy the goods, the system will collapse. So companies spent huge amounts advertising. This new industry developed sophisticated techniques to persuade people to buy expansion of the mail-order companies gave consumers in the countryside access to the wide range of goods on offer.
A whole advertising industry grew up to promote the vast range of consumer goods on offer. It used increasingly sophisticated techniques: adverts were more colourful than before and catch-phrases were introduced. Magazine advertising increased greatly and radio advertising began as a complexly new venture
Another minor factor which contributed to the boom was shopping as in the cities, chain-stores opened to stock the new range of goods now available. It was at this time that clothing for women started to be mass-produced. Manufacturers realised that certain dress sizes could be made which would fit most of the women in the country; there was a much wider choice of materialised styles than ever before. Clothing sales went up 427 per cent in the 1920s.
The improving truck industry and road system meant that goods could be delivered more easily by mail order. People living in remote, country areas could buy anything from farm machinery to frying and denim jeans. The number of mail-order companies grew enormously. The most famous of there was Sears, Roebuck and Co. of Chicago. In 1928 nearly one-third of Americans bought goods from the company-giving it sales worth $547 million that year.
Republican pro-business polices encouraged the boom as they lowered taxes on income and company profits, giving the wealthy more money to invest in American industry and buildings and people more money to spend on American goods. They put tariffs on imported goods. This made imports more expensive compared with American-made goods and thereby helped American producers. They also didn't interfere in business or put any controls on financial institutions.
In conclusion all of these factors fed into the boom. Once it started, the boom became self-generating. The mass-production of cars stimulated the growth of industries that produced parts for cars: tyres, glass, metal and so on. More cars also led to the building of more roads and service station and an increased consumption of petrol. The development of electricity stimulated the growth of new industries making electrical products. New companies, setting up offices and large stores, created a demand for more buildings, so helping the construction industry. More people employed and earned a decent wage meant an increasing demand for goods.
