Economic Expansions in 1920s

During the 1920s, there was a rise in economy of the United States. The people of the United States and its territories enjoyed a prosperous life, as the economy grew 7 percent per year between 1922 and 1927. In this period, also referred as “Roaring Twenties”, there was high economic growth with increase in the living standards of Americans.

According to the textbook, “Nation of Nations”, the reasons for the economic expansions in the nineteenth century were due to the boom in the industrial sector after the World War I and high consumer spending. Along with the improvements in the technological fields, construction and automobile industry, the sale of electricity doubled and consumption of fuel was doubled too. People spent lot of their money due to proper jobs and the falling prices of goods by which money in the economy increased sharply.

In the 1920s, the improvement in technology helped partly in the economic boom of the United States. It reduced the prices of consumer goods, production grew at a higher rate and Americans saved less and spend more money. There was boom in the construction industries after the war. Road and residential construction doubled and people moved from cities to suburbs. The business of America increased sharply as industries flourished in steel, marketing, cigarettes and other business. The capital of nation was controlled by corporations rather than by individuals. Also, with the new scientific management, there was smooth relationship between employees and managers and workers were encouraged to buy company stocks. Advertising was used to promote consumer goods based on consumer’s desires: health, population, and social status.

The era of the 1920s was the booming period of the United States ec...

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...om possible and he is the founder of Ford Motor Company. Service facilities like restaurants stations, and garages also developed. The lifestyle of the Americans prospered as they were employed in new industries and received high wages. Also, there were changes in the field of technology, transportation, advertising, entertainment and consumer spending. Jobs were available and people’s living standard improved in the economic expansion that took place in the United States in 1920s.

Works Cited

Brands, H. W. American Stories. Vol. 2. Upper Saddle River: Pearson Education, Inc. 2009.Print.

Davidson, James W. Nation of Nations. 5th Ed. New York: McGraw-Hill, 2004. Print.

Schultz, Stanley K. "The Politics of Prosperity: The 1920s." American History 102: Oldest American History. University of Wisconsin System. Web. 12 Apr. 2011. .