In the 1920s the USA was the leading producer of oil in the world. America’s agriculture was becoming the most effective and productive in the world. The industrial strength of America is probably the most important cause of the economic boom. It allowed ... ... middle of paper ... ...as it led to America having money to invest in new industries. 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.
Indeed the 1920s left America with jazz music, flappers, The Great Gatsby, and an era of good fortune, there was so much more to the era than optimism and enthusiasm. After The Great War ended, America had hope, leading Americans to take out their savings from under their mattresses and invest in the Stock Market which skyrocketed throughout the ‘20s leading to an economic boom. Although the 1920s remind us as a time of prosperity in US history with some of the most important inventions, we fail to remember what led to this era and it’s downfall. We tend to think of technology as helpful and promising, but new inventions left half of America in the past and the other pushed into the modern world. New government enforced laws resulted in gangs and black market.
Many sole proprietorships and partnerships developed in response to these tastes through niche markets, producing highly specialised goods. America had a national, homogenous market in which large corporations profited from economies of scale and mass production. Factor differences between the two nations resulted in Britain benefiting from her highly skilled labour, two-thirds of which were employed with companies of less than 250 people. America, with its abundance of land and raw materials, focused on using capital intensities in production rather than relying on the relatively more expensive skilled labour. One similarity of both nations was the decline of employment in agriculture by the late 19th century, which freed up labour to be utilised in other industries.
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 Economic Boom in America in the 1920's The decade of the 1920s, or as it was called by its contemporaries, "The New Era," was marked by prosperity and new opportunity in the aftermath of World War I. The war began in Europe in 1914, and the United States entered the fray in 1917. 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. America had given loans to Great Britain totalling over $2.3 billion. As a result, they feared a British defeat that would severely cripple them.
(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”. As WWI ended and America transitioned from wartime mindset to peacetime lifestyle the economy of the nation had placed the United States as the world’s superpower. As all of the fighting occurred on foreign soil there was no added expense to rebuild infrastructure of the nation as other countries were required. Instead of rebuilding roads, buildings, hospitals, schools from new designs America could... ... middle of paper ... ...the customer had completed their bank transaction they could return to the ground level and enjoy a moment of shopping at the various retail shops that were housed in the dedicated retail spaces directly below the main banking floor.
The Gilded Age within the United States represents an era that was marked by extensive economic growth as well as massive social engagements. The labor force conditions within the country were very attractive when compared to the rest of Europe and this served to attract a large number of immigrants. Furthermore, coupled with the explosive industrial growth, the Gilded Age turned out to be a prosperous as well as a treacherous era particularly for the jobless immigrants. At a social level, the Gilded Age was responsible for questioning some of the long-standing social ideals that had been in place for centuries. The following sections address the economic and social trends that acted to shape the United States into what it is today .
People had the time and money to buy goods and invest in the economy, which boomed; so unemployment fell and wages rose. More people were employed and had money, which they used to buy consumer products, which then continued to fuel the booming economy. Therefore the main reason for the boom in the 1920s was the increased accessibility of consumer products, and the subsequent empowerment of the consumers. The boom in the 1920s marked the birth of mass market and the consumer-driven economy. Works Cited Walsh, Ben.
Whether it is the 99% who envy the 1% or the 53% who resent the 47% who are receiving government distributions, we are beginning to show signs of focusing more on others than on ourselves. That 's a shift we want to avoid. Over time envy has a corrosive, pernicious effect on an economy." (Nohria, Envy and the American Dream) Over the years it appears obvious the focus with emphasis on social media and celebrities who would appear to be filthy rich and happy have majority of American 's "keeping up with the Joneses". The phrase refers to the grand lifestyle of the Joneses who by the mid-century were numerous and wealthy, thanks to the Chemical Bank and Mason connection.
President Calvin Coolidge once said, "The business of America is business" (Napolo 35). During the 1920's, America saw a shift toward widespread business expansion and economy prosperity. Economic expansion created new, booming businesses and thriving business profits which in turn raised the standard of living for many Americans. During this time in America, businessmen advocated a return to laissez-faire economics, less government regulation of business, and less government support for labor unions. The federal government supported big businesses by way of high tariff policies and cutbacks in the Federal Trade Commission (FTC).