How Does Technology Affect The Economy In The 1920's

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After World War I, the society of the United States became prosperous. People enjoyed their lives by entertaining and spending enormously. Technology developed and peace and prosperity existed. For instance, the first radio station in the United States was established in 1920, named KDKA. Additionally, automobile became popular and changed the transportation system significantly. However, there were many hidden yet potential issues behind such prosperity. Agriculture didn’t benefit as much as technology did because electricity was not universally spread in the non-urban areas of the United States during 1920s. Later in the decade, people also gradually stopped purchasing automobiles and other big electric appliances made in factories because most of the consumers could only afford a small amount of expensive goods; therefore, prices for durable goods kept falling. These problems surfaced in October late 1920s and led to the Great Depression that started when the stock market crashed in 1929. The Great …show more content…

was in a harsh situation. Robert S. McElvaine defined that “Tariff barriers—led by the Hawley-Smoot Tariff in the United States, passed in 1930—were erected to protect domestic markets.” It might sound good to economic system in the U.S. at the first sight, but in fact it blocked all the helps from other countries. Since the domestic market was already inflated, the government still kept the high tariff. “It lead to less trade between the USA and foreign countries, thus creating even more economic problems.”(“What were the political and economic causes for the Great Depression”) Setting up high tariff had more negative impacts than positive ones. It only brought American economy to a abyss. As a result, other countries set up high tariff against America as well. It was more difficult for U.S. to trade with foreign countries. The government worsened the Great Depression by setting high

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