The First World War was the main reason for America’s industrial strength as many countries were paying America back money that they had loaned during the war, with interest. The First World War also meant that other countries were not strong enough to keep up with America’s industry. Republican policies were also contributory factors to America’s industrial strength, as one of the policies was to leave businesses alone. This meant that all industries thrived. New developments led to mass production, which allowed the average American to buy new items that were manufactured.
The boom began as a result of America’s immense industrial power. This was caused in large part by the First World War and the unique nature of America’s involvement therein. For most of the war America did not actively participate, and instead lent money and exported arms, munitions and food supplies to the Allies (Walsh 187). They also took the opportunity to expand their markets in the colonies of the warring countries, and they reaped economic benefits. Furthermore the war conveniently destroyed their industrial competitors; after the war, many countries’ industries were impoverished.
America took over British and French markets. America also took over German markets, before the war Germany was the world's... ... middle of paper ... ...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.
America was full of resources like oil and coal. If these resources had to be imported to the USA, it would've cost more money. Another reason for the boom was the policy of the Republican Party. When the Republicans came to power they introduced tariffs, this made it expensive to buy foreign goods. The tariffs protected US businesses from competition.
American loans were costly for America and it took them time and favors from other countries to get them back on track. Inequality and unequal income and wealth was a big benefactor as well because the rich became richer and the workers lives didn’t change and the big businesses carried on speculating on the exchange with all their money eventually to the destruction of the once so lavish life of America.
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.
Also in 1922 the McCumber tariff was introduced, this put heavy taxes on cheap foreign imports. This made goods from other countries look very expensive to buy in America, so Americans bought American made goods, and American companies made big profits. However foreign countries retaliated by putting high taxes on American goods being sold in their countries. By the late 1920’s this was a big problem for America and Europe. Isolationism roared for American companies as they made huge profits but the American people lost out too because Europe couldn’t export goods to America which is a very big country.
This was a war so destructive that President Wilson would stay out of and keep the United States neutral, causing an economic boom from selling weapons to European countries; until it was time for the U.S. to get involved. Money, technology, and the friendship of countries would end up in a horrific mess that would scar the world forever. World War I was not only larger than any other war the world had experienced, but also revolutionary in the nature of the war. Countries involved in the war were in demand of bigger and better weapons, luckily the economies in the period of time allowed them to do that. Some of the new...
These made it very expensive for foreign goods to be imported into the country because of large taxes on them, and so not much money was going abroad. They also protected the businessman from foreign competition and so allowed business to grow even more. Low taxes also promoted the boom by leaving people with more money to spend and so encouraging them to buy more American goods. It also encouraged wealthy people to reinvest back into American industry. Although all these factors were very important to the "boom" the car industry was a major contributor to it.
The Industrial Revolution as a Time of Great Progress I believe that the Industrial Revolution affected everyone in different ways. I think that the majority of the already richer people did well out of the Industrial Revolution because they could afford to build up businesses and continue to build on already existing ones. They were made a lot more successful because of factories, transport and the poor's life style. The factories improved the businesses because they could make so much more produce and therefore much more profit. However the factories put the skilled workers out of their jobs as the big batches of produce where in a much higher quantity and in much less time, therefore they were cheaper which meant more people could buy them, and it was fashionable to have the “in” pottery, for example, so everybody wanted it and it advertised the factories produce.