The Boom of US Economy in the 1920's

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The Boom of US Economy in the 1920's

In the 1920s, most countries involved in World War one were

poverty-stricken and working hard to try and pay off debts from the

war. However, America had only joined in the war near the end, and

hadn't had to pay as much money towards the war as other countries

had. Also, America had lent money to other countries, which they were

beginning to get back. They were making profits from the now poor

countries because they had provided Europe with guns and weapons in

the war.

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Mass production was also a key factor in the Boom. The new use of

'assembly lines' meant that production was far cheaper and faster. The

first to start using this technology was Henry Ford, a car

manufacturer. By 1925, Ford was producing one car every ten seconds,

this meant more profit for America, and many jobs were available for

people to work doing one job on the assembly line.

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The presidents of the time were Republican, and believed that America

should keep out of the lives of citizens, meaning that corporations

could grow easily. There were risks that came with this; large amounts

of money and power were given to normal businessmen, but it paid off

because it gained America huge profits from selling to foreign firms.

This policy carried on, America tried to establish Isolationist

policies which would further their success because the public were

persuaded to buy American goods instead of foreign.

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Commercial advertising was another source of profit for America;

companies could now sell their goods over the radio.

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Not everybody benefited from this, though; the isolationist policy

meant that businesses such as those that worked in foreign trade and

relied on overseas market were broke, as they no longer had any

business.

Farmer also did very badly from this. Overproduction meant that prices

fell to the advantage of the consumer, and so farmers had to sell

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