Causes of the boom years
Employers were working fewer hours however were being paid more. This therefore meant industrial goods produced were also increasing. American’s had more time for leisure and more money so electrical labour-saving devices were being introduced becoming affordable by many people. Motor cars eased travel to and from work as well as for leisure pursuits. It was the golden age for cinema and sport attracted vast crowds.
Reasons for prosperity: government policies
Calvin Coolidge stated ‘the chief business of the American people is business.’ This was his government policy to let business operate as far as possible, free of regulation. Andrew Mellon and him believed wealth filtered down naturally to all classes and to ensure increased living standards for all was to allow the rich to continue make money to invest in industrial development which therefore meant more job opportunities, more wage earners, more consumption etc. this policy was laissez-faire but the government intervened to support business in 4 ways:
Fordney-McCumber Act 1922 → raised tariffs to cover difference between domestic and foreign production costs