Additionally, the Republicans introduced protective tariffs .These tariffs helped to boost prosperity because it was expensive for foreigners to dump cheap goods in America. This made some profit as foreigner had to pay extra tax to sell stuff in the USA.
Further reasons why Republican policies helped increase prosperity was due to them allowing trust to exist. Trust helped to boost the economy because workers were trusted to do their job and make something that would make their country proud. Also this helped to increase prosperity as the politicians didn’t tell workers what do and let the expert workers do the job.
Final Reason why the republican’s police of the 1920s helped to boost prosperity was due to their promotion of low tax. This boosted the economy because it brought benefits to the poorer workers but a bigger advantage to the wealth workers. This polices was made so people can spend their money on American consumer goods and the wealthy people would reinvest their money in industries. In this way all the profit came back, this is the way low taxation helped to increase prosperity.
However, there are a number of other reasons why the USA became prosperous in the 1920s
The First World War was an important factor in the economic boom of the 1920s in the USA. This is because they were making money by trading with the allies and other countries while the allies were in France . This made America the leading world producer and beat Germany in the chemical industry
Additionally, the USA’s natural industrial strength was another important reason for prosperity in the 1920s. This has helped to increase the prosperity of America because USA had lots of natural industrial strength as they were the leading oil producers and had massive steel, coal, and textile industries which made lots of profit and helped to increase prosperity in the American economy .
Another factor which was important in the prosperity of the 1920s was readily available credit and general state of mind of the American public. This helped to increase prosperity because new ways for people to buy this they want and need were made like hire purchase, in this way more people were buying American consumer goods and money came in to America.
Finally, it could be argued that the growth of new industries were important in the growing prosperity of USA in the 1920s. This is because new industries were made and a fast majority of consumer goods were produced. There was mass production and things became cheaper so more people were buying this and USA made lots of money out of this. Also new ways of convincing people to buy stuff were used. Lots of profit was made because of this so this helped to increase prosperity. Some new industries that were growing were the ford cars (model TS) and silk stockings were growing companies. The assembly line helped to boost the economy by mass production because it was quick and workers didn’t have to move around. This saved time and in that time more products were made instead of wasting time. Goods became cheaper as there were an enormous amount of consumer goods being made and were made cheaper so more people could buy products and more money was made. The new industries also took advantage of clever advertising strategies which increased consumer demand as people were aware of different products, so more products were sold and this helped to increase prosperity in the American economy.
Overall, I believe that the Republicans policies of the 1920s were a great importance in the prosperity of the USA in the 1920s but there were other important factors which lead to USA’S prosperity as I have mentioned. This is because I think the policies were like the bases of the other factors as they have helped to make something of those factors.
