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The Boom in the United States in the 1920's
In the 1920’s the U.S.A was booming .businesses grew, people had more
money to spend and they became very wealthy. Buildings and roads were
built. New products were available to Americans like washing machines,
cars and radios. In my essay I am going to look at some of the biggest
factors that caused the boom.
The most important reason for the boom was world war one as they were
very rich after the war. This is because no damage was done to
American territory as the war was held in Europe. Also, lots of money
had been made by selling ammunition. America was one of the main
suppliers to the war. Great Britain could only trade with America as
all of the other countries were tied up in the war. This helped the
boom significantly.
More factors that contributed to the boom were confidence, mass
technologies, advertising, chain stores and big mail order companies.
All these helped contribute to the boom as there were lots more
products available and they were cheaper, this then made then
affordable for everyone. People had more confidence in new products as
they were so rich and willing to take a risk. Advertising showed all
Americans what was available. Chain stores allowed people to buy
things regardless where they lived as there was always a shop in that
area. Mail orders catalogues
Ensured that mass consumption was always kept going and that people
could get things they wanted.
Other factors which helped bring the boom about were Natural resources
and new technologies these helped as the U.S.A had a great source of
natural resources to supply to help make new technologies and mass
production of things. The new technologies allowed people to buy
things
o help them around the house and to give them a pleasurable life. This
was only possible as the Americans discovered credit. Credit was
another factor in the boom, credit allowed to people to buy things
World War I had placed great strains on the economies of the most European nations that were involved in the conflict. With trade agreements with countries like Britain, France and United Kingdom America’s economy flourished, as they forced these countries to accept goods in exchange for debt. The economy of America soared to new heights. America’s abundant natural resources and technological advances were used to become leaders in manufactured exports. (Encl) Usually the general public would opposed big business owners to partner with government, but as the lifestyles of many Americans elevated these relationships were accepted. By the end of the decade, 1910 to 1919, annual incomes rose from $580 to $1300 setting the stage for the “crazy years” known as the “Roaring Twenties”.
The start of this decade was an economic boom. With the war over and done, people were happy and rich. This did not last long. By the end of the century the Great Depression would begin.
During the 1920's America experienced an increase like no other. With the Model T car, the assembly line, business skyrocketed. Thus, America's involvement in World War II did not begin with the attack on Pearl Harbor. Starting in October 1929, the Great Depression, the stock market crashed. It awed a country used to the excesses of the 1920's.
This is where the concept of “welfare capitalism came into effect. Welfare capitalism is defined as the practice of business providing health, happiness, and fortune services to their employees. Americans that were fortunate enough at the time to have an education and were among the skilled working class were offered paid vacations, pensions, and benefits (FLORIDA IN THE LAND BOOM OF THE 1920’S). This type of leisure played a key role in the Land Boom. Families and individuals of the middle aged, middle class America were travel for vacations or simply to escape the harsh winter climate in the north thanks to the automobile. The invention of the automobile gave citizens the means to travel greater distances in considerably less time. Another key factor that came into play was politics. The Florida government played a key role to the success of the Land Boom, this type of cooperative government gave investors and travellers the easy access to purchase land with great incentive. President Warren G. Harding promoted lower taxes and greater business prosperity at a nation level (FLORIDA IN THE LAND
America was on fire during the period of excitement. These new inventions are making home life easier for women and more enjoyable for the men. Not only were American families buying these new trinkets, but they also started purchasing stock in companies at an increased rate. A commodity that was available before the war but not readily accessed, now has as many as seven million Americans buying and owning company stock after the First World War. With the purchase of automobiles, washing machines, and stock, families were still not making enough to keep up.
Firstly, the stock market crash in the late 1920s was one of the main factors that contributed to the onset of the Great Depression. The common goal of many Canadians in the roaring twenties was to put behind the horrors and doubts of World War I, and focus on what was to come in the near future. However, on October 29, 1929, the Stock Market in New York City experienced one of its worst days of all time. The catastrophic impact that the stock market crash had was enough to shift the world in the direction of an economic downfall . The rapid expansion of the 1920 stock market caused the market to hit an all-time high. Prices of shares skyrocketed and surpassed their once realistic value . It was now possible for individuals who could not afford
World War I may not have made the world safe for democracy, but it did help to lay the groundwork for a decade of American economic expansion. The war began in Europe in 1914, and the United States entered the fray in 1917. The 1920s saw the growth of the culture of consumerism. A significant reason for United States involvement in the war was the nation’s economic links to the Allied Powers, and especially to Great Britain. American soldiers returned home in May 1919 with the promise of a prosperous decade (Baughman 197).
Many new industries were developed to support mass production of goods, such as, roads, tires, and all the items it took to build a vehicle for the automobiles.(David Shannon, 217) The chemical industry grew in the United States after First World War because America couldn't get the chemical anymore they had gotten from Germany. (Shannon, 219) Americans wanted the access to electric power which included: lights, radios, and washing machines. There was a mass movement of people from the country to the city looking for jobs. The rural life couldn't support a family like urban living could, people left the farming industry and moved to the manufacturing industries which damage the ability for agricultural to survive.(Shannon, 219) The effects of prosperity revolved around the automobile specifically younger people's ability to escape adult supervision.
People now had the chance to look for gold out west and the Gold Rush began. This is when America really had its boom. Lastly, we now have twice as much, if not more, natural resources than we had before.
The United States began a period of uninterrupted prosperity an economy expansion during the 1920s, coining the term, the roaring twenties. Automobiles and construction became the most important and excessively relied industries in the nation as a result of the assembly line and other innovations. However, the prosperity depended only on these few basic industries, thus,
The 1920's was a time of change in the United States. “The Roaring Twenties” had an outstanding impact on the economy, social standards and everyday life. It was a time for positive results in the industry of consumer goods and American families, because of higher wages, shorter working hours, and manufacturing was up 60% in consumer goods. But it was also a time of adversity and opposition for others, such as immigrants and farmers. Immigrants had lots of competition when they were looking for work and they weren't treated fairly by Americans, depending on where they came from and what they believed. Farmers were paid very little because the price of food kept going down, they also had the Dust Bowl to worry about. African Americans became further infused with mainstream America during the Harlem Renaissance. They were also able to organize and elect officials who would make life better for them. The Roaring Twenties was a very exciting time to live in and we can all learn what the real world is like, and how we can prepare to be ready for it, today and in the future.
Events that occurred in the 1920s altered society greatly, becoming an important part of modern day reality. The way society thinks in the 1920s is quite similar to modern society, illustrated through the ideology of the “American Dream”. During the 1920s, people aspired to grow to their fullest through achieving a high social status, and wealth. Likewise, in modern society, people continue to carry this idea as they aspire to have a good job; earn money; and obtain a high social status. This idea of opportunity of prosperity and success has continued on into the modern society, having a great impact. These impacts are also visible through the lessons carried on from events that occurred in the 1920s. Many mistakes were made in this era which are
The main reason for the transcontinental railroads to be built was to bring the east and west together. The building of these railroads caused huge economic growth throughout the United States. The railroad created opportunities for everyone across the US.
In the early 2000’s the housing market boomed, real estate was a hot investment and everyone was looking to buy a home. However not everyone can afford a home and a majority of people were forced to take out a mortgage to purchase real estate. During the housing boom banks were supplying subprime loans and upping the risk in the real estate market. These loans were not only risky but irresponsible on the part of the banks’ lending them, and although individuals receiving the loans thought they were being helped at the time, these loans were a major reason why so many people their homes, almost crippling toe U.S economy as a whole.
The expansive monetary policy. It propagated the asset boom that lowered the interest rates and induced borrowing past the sensible bounds to acquire the asset. The government also played a role in increasing demand for houses through proselytizing the benefits of home possession for the welfare of individuals as well as families.