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

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

Extracts from this document...


Why was there a boom in the USA In the 1920s? In the 1920s, the USA was booming. Business grew, people became wealthy, new buildings were constructed and thousands of miles of roads were laid. Americans were able to buy a whole new range of new products like cars, radios and washing machines. Why did the US economy grow so fast at this time? Historians have suggested that a number of factors worked together to cause the boom. There is not a single most important factor to the great business boom of the 1920s. There is a certain cycle which must be followed for an successful boom to take place; firstly there is demand, this means that companies need to produce more, therefore there needs to be more workers, this leads to more money for the workers to spend which then goes back to there being more demand. However, this cycle does just not happen, some things help each part of the cycle making each part stronger. But this cycle needs something to get it started. This is usually, confidence among the people who have a good self-belief about their future. ...read more.


Demand was pushed more because of the introduction of mass marketing. It was very important for people to know about the products being produced, if they do not then the business will go bust. Many companies set about paying huge amounts to have their products advertised. This was the start of advertising for the USA and was hugely successful. It was also an introduction to the mail order catalogue. Because the USA is so big many people cannot make it to the shops making mail order catalogues an ideal thing. Improvements in media and also a greater demand for media products also helped other goods. Radios and cinema was used for advertising and was a great achievement. However, the trailers before films were no way near as successful as the advertising of what was in the film itself. Everyone wanted to become a film star or just look like one, leading to a huge increase in the sales of cosmetics. During this time films were full of people smoking and this lead to a big rise in the amount of cigarettes being sold. ...read more.


The government also added an increased amount to any foreign goods. This means that out of the things being purchased at the time a bigger percentage of those goods came from the USA, improving the economic status of the country. The main reason for this essay is to show that an economic boom is not wholly reliant on one factor but on a number of factors which are all linked. However, an economic boom does not last forever, people will not always need new things and the boom could come to a halt through over production. An economic boom is a group of events all linked together, if one collapses then so will the whole system. The way you know this is because if one thing goes wrong then the whole thing could go wrong. If there is over production then that means there would be less demand, meaning less things produced, meaning less workers, meaning less money, therefore leading to less demand. This means you would just head down on a downward spiral. The system could also go wrong because America was lending out so much money at the time, if they lost their records of the loans somehow it would cause major problems with thousands of banks going bankrupt. But that wouldn't happen, would it? By David Alison ...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. To what extent did America roar in the 1920s?

    Big, mechanised farms also did well. The Midwestern grain growers and the California and Florida fruit growers made a good living by shipping their produce in large quantities. The 1920s did not 'roar' for most farmers or farm labourers because many lost their jobs and almost everyone would have seen a decrease in their living standards.

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

    The era of technological change would not have happened without the ability to effectively market them. Companies spent huge amounts on advertising these products. Items sold in bulk were sold to a mass-market, depending entirely on people's knowledge or liking of the product.

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

    Hire-purchase was when banks and businesses lent people money and let them pay it back slowly over a certain period of time. Credit meant that people were buying more and paying more for it, this meant more money was going into the economy.

  2. This essay will mainly examine the main reasons for the boom of America in ...

    Mass consuming: The birth of the Advertising agencies gained drastic success in persuading people about different products. Mass marketed products were bought in masses by people. There was also an expansion in the mail-order companies. This enabled even the people of rural areas to buy goods from the center of America.

  1. Features of the boom

    Al Capone alone made $60 million a year from his speakeasies, he said "Prohibition is a business. All I do is supply a demand."There was a lot of organised crime. Gangsters usually came from poor immigrant families, and were clever and ruthless e.g.

  2. Causes of the boom

    This meant they allowed huge super-corporations to dominate industry. Woodrow Wilson and the democrats fought against this policy because they believed it was unhealthy for one person to have complete control over a vital (very important and needed) sector of industry e.g. Carnegie (steel) and Rockefeller (oil).This helped the economy because the "captains of industry" knew what was best

  1. Presidents in the 1920s USA

    Unfortunately an economic depression hit America while Hoover was president. Hoover did undertake some measures to help the economy by reduction in taxation so people had more money to spend. An expansion of public works. A home loans act to help with mortgage payments.

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

    More vehicles=More parts needed=Older industry boosted. Air travel boosted-162,000 flights in 1929. * Advertising-More firms realised the potential of advertising, making it become more important. More sophisticated advertisement methods, with colour and they became more memorable. Cleaning the home was easier(new technology) so women had more time, so more advertisement was aimed at them.

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