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
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”.
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. These are the events that lead up to the crash.
In 1914, World War I began. The United States intended on keeping out of the war, but by 1917, it was no longer just their exports involved, but their soldiers too. This struggle was financed by highly inflationary means and even though the U.S. involvement was limited in time, the postwar economy had to adjust to the lack of heavy military payouts. In 1919, after the armed forces were almost completely discharged, business activity took a sharp down fall. However, a postwar boom allowed for a quick rise in business activity that lasted about a year, taking us into the roaring 20's.
This investigation will examine ways in which the US economy improved during the second World War and what caused these improvements. World War Two was a turning point for the American economy from the end of the Great Depression to the start of an economic boom. The reasons for this economic improvement are still debated today. This investigation will look at the economic indicators before, during, and after the war. It will also consider the two main arguments for the cause of the sudden economic growth and determine which one seems most probable.
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).
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The wall street crash was bad for every one in America at the time and
“The Roaring Twenties were the period of that Great American Prosperity which was built on shaky foundation”. This quote came from an anonymous person describing the great life in the 20’s. It’s very true because it was a great time of social and economic growth, but it was a very unstable and random way of living, which didn’t end up lasting as long as some had hoped. As time goes by in history, many things make America what it is today. The roaring twenties were the most important years contributing to the change in America. First off, the twenties made such an important impact because this was a time for the economy to boom and reform, also during this time women’s rights became more focused on, and lastly due to the many advancements in technology the twenties was a time of great prosperity and wealth. The twenties made life seem so easy, until reality sets in.
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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.
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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 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.
The 1920s were a time of change for the people of America, and they began with a boom. This boom was initially caused by the combination of America’s inherent rich natural resources and the First World War, and was further propelled by the lack of regulation on business as promoted by the Republican government and by new, different, improved methods of operation in business and industry. Though the boom would never have occurred without the initial causes, the boom would never have had such a profound impact on all aspects of economics and society as it did if it had not been for the revolution in industry and its effect on the state of mind of the American population. The main reason for the boom in the 1920s was the confidence and new attitudes of the population, which both caused and were caused by the boom, and which thereby sustained the boom.