Why was there a boom in the 1920's?

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Why was there a boom in the 1920’s?

In this essay I am going to answer the following statement. ‘Without the new automobile industry the prosperity of the 1920’s would have scarcely been possible’.

Before answering this question I am going have to investigate the factors involved in causing the economy to boom.

First I am going to look at why the automobile industry was such an important cause to the American boom.

The most important industry in the 1920’s was the automobile industry. The motorcar had only been developed in the 1890’s. The first cars were built by blacksmiths and skilled craftsmen and they took a long time too make and were very expensive. Car production was revolutionised by Henry Ford. In 1913 he set up the first moving production line in the world, in a giant shed in Detroit. Each worker on the line had one or two small jobs to do as the skeleton of the car moved past him. At the begging of the line, a skeleton car went in at the end of the line was a new car. The most famous car was the T-model. More than 15 million were produced between 1908 and 1925 and in1927 they came off the production line at a rate of one every ten seconds.

        By the end of the 1920s the motor industry was America's biggest industry. As well as employing hundreds of thousands of workers directly it also kept workers in other industries in employment. It stimulated industries such as Glass, leather, Steel and Rubber which were all needed to build the new vehicles. Petrol was also needed to run the cars and labourers were busy building roads for them to drive on. This was all because of Henry Ford's Motor-car Production line.

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        I am now going to look at other industries that were important in the 1920’s.

Through he 1920’s new industries and new methods of production developed in America. America was able to exploit its vast resources of raw materials to produce steel, chemicals, glass and machinery. These products became the foundation of an enormous boom in consumer goods. Telephones, radios, vacuum cleaners and washing machines were mass-produced on a vast scale making them cheaper so that more people could buy them.

At the same time, the big industries used sophisticated sales and marketing techniques to get people to buy their ...

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