The ‘T-model’ car was coming off the production line at one every 10 seconds at one stage! As many people were buying cars, more roads had to be made, and this created large employment (at one point making roads was the USA’s largest employer), boosting the economy. Many people bought cars on credit, again stimulating the economy. The automobile industry did indeed have a major role to play in the prosperity of the 1920s.
However there were many other new industries that were also important. The USA had the latest technology and many new consumer goods were being produced. Every American household was full of the latest consumer gadgets. Hoover became a household name! These goods skyrocketed and also stimulated other industry (i.e. of raw materials). The USA produced coal. Agriculture became much more efficient with new technology. All the latest consumer goods were also exported to other countries. Industries began to produce better goods, faster and cheaper. This was the ‘industrial efficiency movement’. The USA had vast natural resources and used them to its benefit. The war was a huge factor in the extremely successful prosperity of the USA in the 1920s. While the war was going on, the USA provided the allies with munitions and lent them money. This stimulated the USA economy. The USA sold an enormous amount of food stuffs too. While Britain and the allies were busy slugging out the war in France, the USA was taking over Europe’s trade. The USA also provided the colonies with goods. Before the war Germany had a growing chemical industry but the war halted it in its tracks. After the war, America had outstripped Germany and had a huge chemical industry. It provided fertilizers and dyes, once provided by Germany.
The Republican government also helped the economic boom greatly. They didn’t get involved in peoples everyday lives. They kept taxation low (helping the wealthy), allowed trust (super powers in a particular industry) to develop, they also did many other things such as keep high tariffs on imports (so people were more likely to buy American goods, stimulating the economy).
Overall I feel that the automobile industry did have a vital role in the prosperity of the 1920s. However I feel that there were many other factors for the prosperity too (republican policy, war etc.). I feel that without the automobile industry the prosperity certainly wouldn’t have been as high as it was, but to say it would scarcely be possible is a bit extreme. I think that without it there still would’ve been significant prosperity due to other factors, but it would have been no where near as successful as it was. The automobile industry did indeed play a crucial role in the prosperity of the USA in the 1920s.
By Rishi (age,14)