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

Why was there an economic boom in the 1920's

Extracts from this document...

Introduction

Why was there an economic boom in the 1920's An economic boom is when an economy rapidly grows in strength over a short period of time. The economic boom in the 1920's in the USA was due to numerous factors which were all linked so without the one factor the other factor wouldn't have contributed to the boom. The numerous factors which each contributed to the USA's economic boom in the 1920's are listed below: Resources The fact that the USA had a great number of resources such as wood, iron, coal, minerals, oil and land contributed to the boom massively. These had helped the USA become a great industrial power by the beginning of the 20th century and acted as a sound basis for further expansion into the 1920's. ...read more.

Middle

Mass production New technology meant that goods could be produced much quicker and cheaper. Due to the invention of the production line by Henry ford cars could be made so cheaply that ordinary Americans could afford them, the idea of a production line was applied to new and existing industries especially consumer products. Mass marketing Companies spent huge amounts on advertising their mass produced goods to a mass market. Sophisticating selling techniques were developed to persuade people to buy products. The expansion of the mail order companies gave consumers in the countryside access to the wide range of goods on offer. Credit Credit made it possible for people to buy products which they couldn't afford, the company arranged for the customer to pay by monthly instalments or hire purchase. ...read more.

Conclusion

Once the boom had become however it was self generating. The mass production of cars stimulated the growth of industries that produced parts for cars such as rubber for tyres, glass for windows, metal for the car body oil for petrol and so on. More cars also led to the increased amount of roads being built and maintained, buildings such as service stations had to be built as well and petrol garages to meet ever increasing demand for petrol. The development of electricity stimulated the growth of new industries making electrical products. New companies created a demand for buildings because offices and large stores needed to be constructed this helped the construction industry hugely. More people were then needed to work for these new companies and the companies paid decent wages to their employees meaning that the workers then had more money to spend on consumer goods increasing the demand ever more. Anthony Jaep. ...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?

    By the end of the decade there were over 10 million women in paid employment - a 25 percent increase on 1920. However, while women were doing well in the workplace, they could not achieve equality with men in politics.

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

    This lead to putting tariffs on imported goods, encouraging Americans to buy American made goods, and helped American industries this way. They also lowered taxes on income, giving the wealthy industry owners more money to spend on American goods.

  1. (Q1) Describe some of the key features of Americn society in the 1920's?

    Before prohibition, alcohol seemed to be drunk less, but after prohibition, the drinking of alcohol increased because of the reputation of gangsters, which was shown in Hollywood. Now the public had become much more aware about alcohol than before. Soon drinking in speakeasies became very common.

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

    The motorcar turned the automotive industry in to Americas biggest. Due to the mass production of cars, other industries involved with the cars were also prospering (petroleum, glass, paint and rubber). Now that cars had come along, cities could now expand.

  1. How far did the USA economy boom in the 1920's?

    The majority of farming families remained very poor in the 1920�s. While the rest of the country got electricity, they did not. While others bought new goods, they went without. The boom benefited a very big part of the industries and American people, but not other part.

  2. Features of the boom

    many more people with jobs for example building roads not only required construction workers but also concrete, metal bridges and road signs. Thanks to him poorer people were able to purchase cars. The most popular of which was the Model T- more than 15 million were produced by 1925, coming

  1. Causes of the boom

    A lot of new industry's were set up, such as a new truck industry and passenger aircraft in 1927-which by 1930 companies were flying over 162,000 people per year. Rayon was also invented which sold 300 million to a female population of 100 million.

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

    When overproduction occurred, this meant that the surplus could not be shipped off to Europe, as nobody there would buy any of it. Over-speculation of the stock market-Share prices were constantly rising during the 1920s, which lead to over-speculation. in 1928, companies were not selling as many products, and so

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