The Cause of the Economic Boom in the 1920's
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. This was a period of prosperity, when the
country's economy was doing well and some of the people were sharing
in it. A long-term cause of the American boom in the 1920´s was
America's natural advantage and regional diversity. The South was
mainly used for farming but also had large amounts of oil. The North
of America and the East Coast were the richest parts of America
because there was lots of industry, business and many new factories
were being built providing new jobs. This large area of farmland and
industry provided for all the food America needed and all the products
that the American people needed which meant that America did not need
to import any goods from outside the USA, to further discourage this
and keep prosperity increasing in the US, the Government imposed
tarrifs on imported goods. The main turning point of the boom was the
First World War and American Isolation. In the First World War America
lent millions of pounds to countries like Britain they would then be
paid back with interest on top of the original money. America also
exported many of its good and products such as munitions and natural
resources which it had lots of to Britain and France. This was a one
way trade system and it gave a real boost to American industry.
America got rich while the European countries were busy fighting.
America took over British and French markets. America also took over
German markets, before the war Germany was the world's...
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...have its resources it would not have
exported goods during the First World War and not have taken over its
trade competitors´ markets. The producing part of the economy would be
non-existent and half of the prosperity cycle absent. It is also clear
to see that the most important short-term cause of the boom was the
Republican Party and their policies attitude towards business. This is
because they lowered taxes and so people could spend more and they
made sure people spent it on American goods. They did this by
introducing tariffs making it expensive to buy foreign goods. Without
this the first part of the prosperity cycle would be non-existent. The
key to a boom is a country consuming and producing and these two
causes largely helped this.
Statistics and sources from:
class sheets and http://www.britannica.com
During the Great Depression, America’s economy was merely destroyed. Because less money was available, industrialization dropped, factories were losing, and the number of unemployment increased. Later, during World War II most of the countries were destroyed, however, America’s economy was able to grow. Due to the mobilization of America, The victory gardens, the rationing, and the urge to produce more to fight better, America’s production increased in order to support its military. Also, different types of industry that wasn’t available before the war started to develop during the war. So, employment started to increase, thereby increasing the economy. Moreover, it was able to fund other countries with weapons and products necessary for the war, and in alliances America was mainly the provider. After the war, when the Americans’ soldiers came back, with a huge number of factories and high number of people ready to work, production flourished. Thus, America started to recover economically and become more powerful. World War II transformed America’s economy from a depressed
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).
The Roaring Twenties and The Savings and Loan Crisis The movie It's A Wonderful Life starts off in the town of Bedford Falls in the time period just prior to the Great Depression. (I will discuss the Great Depression in more detail in a later essay). It is a prosperous time-the "Roaring Twenties. " Many people have invested money in the stock market and are earning quite a bit of money, there are many parties had by all with music, food and drinks, and good company and fun.
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 wall street crash was bad for every one in America at the time and
Boom Period in the 1920 America 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' with success and increasing prosperity, in which a great deal of Americans, though certainly not all, shared. This period was also known as the 'roaring twenties´. With a plentiful supply of raw materials (e.g. oil and coal) and the policy of isolation and containment in place, America soon became even more powerful and wealthier. America had great regional diversity, with each region contributing something different to the economy.
... was rampant. The British economy of 1919 was not even close to the one of 1900, it could not sustain the gold standard .But, in the 1920's was a boom. From 1922 to 1927 the value of gross external assets held by Americans, especially in Europe rose 400%. By 1928 United States had loaned one billion per annum and the biggest borrower was Germany.
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.
U.S wealth was not spread evenly and the economy was unstable. The U.S. economy was booming in the 1920’s and Uneven prosperity made recovery difficult.
Most Americans began to live a better life from 1922-1929 otherwise known as the seven fat years. This was due to the government’s relaxed approach towards the economy. The laissez-faire system was encouraged because there was little intervention from the state. Businessmen didn’t have to listen to government they could make their own decisions in order to produce profit and wealth. Government’s approach was pro-industry and anti-labour which meant that there was no protection for the workers thus leading to inequality, long working hours and not a enough pay for the workers to really feel happy or satisfied. Powerful monopolies were able to grow unchecked. Although the laissez is a reason for the crash it isn’t the only one reason. It can be argued that the economic isolationism, loans to Germany and other countries and unequal wealth and income etc. were the causes of the crash because America had many more influences than government not intervening and they were involved with a lot of things and people and would come out on the other side biting more than they could chew during the depression.
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”.
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.
During the mid 1800’s, there was a boom in machines that were used to make pretty much anything from clothes and shoes, to farm equipment. This boom is today known as the industrial revolution. Of course to work these machines, big companies had to hire poor adults and children. They hired people that not only wanted to people their families but children who were looking for something to eat and somewhere to sleep. These people worked because they had to, to survive, not because the wanted to. That’s why their bosses never cared about their health, whether it be mentally or physically.
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.
... the economy saw noteworthy improvements for many years to come. Through the production of goods, loans, the stock market boom, and exports, the United States ' economy peaked during and after World War One. The growth was short lived as it was built upon the same conditions that brought about the Great Depression.