The Economic Boom in America in the 1920s Essay - 952 Words

The Economic Boom in America in the 1920s The decade of the 1920s, or as it was called by its contemporaries, The New Era, was marked by prosperity and new opportunity in the aftermath of World War I. The war began in Europe in 1914, and the United States entered the fray in 1917. A significant reason for United States involvement in the war was the nations economic links to the Allied Powers, and especially to Great Britain. America had given loans to Great Britain totalling over $2.3 billion. As a result, they feared a British defeat that would severely cripple them. Although the allies eventually won the war, there were problems as well. The transition from a war-time to a peace-time†¦show more content†¦At this time women were needed in society and men began to accept them. The car and train industry was the largest industry there was. The assembly line made mass production possible, and the industry boomed. America was now a very powerful envy of many countries. America had high production and low unemployment Henry Fords assembly line in Detroit was the largest one in the country. There were many causes of the economic boom, mass production being just one of them. Factories around the USA could use electricity and set up assembly lines and make objects quickly. The cars were made identical to make them easier to make and so they are cheaper. America was being paid back loans that it had lent other countries during the war; on top of this they were making interest. The banks now had lots of money to lend to people setting up a business or for people to buy on the margin. Taxation was kept low and businesses and companies able to keep much of the profit to invest in new efficient factories that produced goods at a cheaper price. Advertising also played a part in the boom; it convinced people to buy their items. They exaggerated. Advertising took place on the Posters, radio newspapers, magazines and cinema, they encouraged people to buy more and more, and the families had many more items than the rest of the world. WhenShow MoreRelatedUsing the four passages and your own knowledge, assess the view that the impact of the First World War was the main reason for the booming economy in the USA in the 1920’s1661 Words   |  7 Pagesthe USA in the 1920’s (40 Marks) I believe that the First World War did not have as much of a significant impact on the American economy as mass production, infact i however see that instead of benefiting the economy the War in fact had the reverse effect to that of which interpretation A and C suggest that the war was the most important factor of the 1920’s American economic boom. Firstly, the biggest reason as to why mass production was the main reason for the economic boom was that the AmericanRead More Causes of the Great Depression Essay1143 Words   |  5 PagesDepression Throughout the 1920’s, new industries and new methods of production led to prosperity in America. America was able to use its great supply of raw materials to produce steel, chemicals, glass, and machinery that became the foundation of an enormous boom in consumer goods (Samuelson, 2). Many US citizens invested on the stock market, speculating to make a quick profit. This great prosperity ended in October 1929. People began to fear that the boom was going to end, the stock marketRead MoreEssay on The Cause of the Economic Boom in the 1920s778 Words   |  4 PagesThe Cause of the Economic Boom in the 1920s By the end of the First World War America was regarded as the most powerful and richest country in the world. In the 1920 ´s the United States economy was booming. 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This spike was the result of theRead MoreIntolerance in American Society Essay629 Words   |  3 PagesIntolerance in American Society Intolerance of other peoples culture, religion, ethnic background and skin colour was a major issue in the 1920s America. This was, of course the era of the economic boom that helped to make America a rich and prosperous country in which to live. This economic boom made America a very attractive place to immigrate to, especially to those in countries that were not so well off. This meant immigration on a massive scale. People from