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Why was there an economic boom in the 1920's

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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.

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