• 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 U.S.A. in the 1920's?

Extracts from this document...


BY: URSALAN KHAN HISTORY COURSWORK: WHY WAS THERE AN ECONOMIC BOOM IN THE U.S.A IN THE 1920'S? In the 1920's the American economy enjoyed a period of "boom". This was a time of economic prosperity; people were spending more and earning more. One main reason for the boom was the Ford car company, the y were producing automobiles in America at a mass rate. Making cars at a mass rate would mean the company would be making a lot of cars and quickly. The company was successful, people were buying their product and the company was making profit and helping the economy to grow. When making their cars by mass production they would require a lot of workers, this would mean there would be a lot of jobs available and more people would be earning and less people would be unemployed. The people earning the money could then buy goods such as the cars and so companies would make more profit and so it would help the boom. ...read more.


Banks cut interest rates meaning people would rather spend their money and not save it. There would be little point in saving, as you would not get much interest. Because people would spend their money businesses would be selling more and to keep up with the demand they would employ more people and this would help the American boom. Hire purchase was introduced into America. This would mean people could buy goods even if they didn't have enough money. This would mean demand would stay high and companies would not have to stop making things, people could buy products and pay later and so mass production could continue. Advertising of products also increased. This would mean people would be more interested in buying products. Advertising persuades people to buy goods they didn't even know they wanted. This meant advertising was creating demand and helping the boom. The government also played a big part in the boom. They lowered taxes which meant companies could make more products because they would make more profit. ...read more.


This helped because it also made other industries successful, such as the oil industry and iron industries. But a reason why the Ford car company was successful was because banks lowered interest rates. If these stayed high people would not buy cars, they would rather save the money. Most money was coming back to the American industry because of the government. If they did not increase tariffs on foreign goods; not as much money would come back to the American economy as people would also buy foreign goods. I think the most vital factor of the American boom was World War 1 because it got the boom going. Without World War 1 America would have competition with European countries to sell goods and the Ford company might have set up in a more better location in a different country. World War 1 got American goods recognised throughout the world and people bought them. But it is difficult to say that there was one main reason for the American boom because they are all linked so closely and because one lead to another and they all contributed highly to the boom. ...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?

    feared of group, but this was short-lived since after 1925, many Klansmen would have felt disgraced and out of favour and Klan leaders would be left feeling discredited. In general white people were not bothered about the Klan and the treatment which the blacks suffered because they were not affected and were put above everyone else.

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

    As the country was blessed with bountiful quantities of natural resources, it allowed the development of new products, allowing the introduction of a new era of technological change, allowing a period of great innovation. New plastics like Bakelite were developed effectively for the first time and were used in new household products.

  1. What caused the economic boom in the 1920s in the USA?

    As I am sure you are aware, the more successful a business is the more people will want to invest in it and this pushes up the prices of shares on the Stock Market. On the whole 'big' investors in the Stock Market have their heads screwed on and make (mostly)

  2. How real was the prosperity of the 1920's in America?

    After the war, there was a fall in the demand for these goods as many people within America migrated north and their diets changed so that they did not eat as much meat and fewer cereals. There was also a decline in cotton as synthetic materials had been introduced.

  1. Features of the boom

    In television the news started and adverts began. However they were redirected towards selling consumer goods, which contributed towards consumerism. More people were going to theatres and buying records. Radio stations started springing up, in August 1921 there was only one licensed radio station, but by December 1922 there were

  2. Causes of the boom

    A very popular policy was low domestic taxes. This helped the economy because if people kept their own money they would spend it on American goods, and wealthy people would reinvest their money in industries. Another policy the government had was trusts. This meant they allowed huge super-corporations to dominate industry.

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

    1929 Immigration Act-Restricted immigration to 150,000 immigrants per year. * The Monkey Trial-Creationism vs. Evolution. Six US States had banned the teaching of Darwinism, meaning they were not particularly happy when John Scopes, a biology teacher, taught his class about evolution.

  2. History Revision Notes - USA Economic Boom in 1920s


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