How far did the US economy boom in the 1920s
After World war one the USA was the greatest economic power in the world as it had not been damaged during the war which left many European countries severely damaged. Furthermore it was owed a lot of money by the allies who had taken out war loans. This had also boosted the industries. The party in power during this time were the republicans who followed various policies that further encouraged the economy to grow.
One of the encouraging factors was that the USA was a very rich country both in fertile land and raw materials such as oil, coal and various metal ores. Most of the inhabitants came from an immigrant background and were eager to make a new start and work hard for their dream. People also started moving out of rural areas and started living in the city and by 1920 over 50% of the population were living in towns and cities. There was also a change in mentality. People were buying more luxuries to help them in the household for example washing machines or vacuum cleaners. They could also pay for all this using “easy credit”, which allows a customer to pay for goods in monthly instalments so you did not fully own your item until you had finished paying. There was also a massive boom in the car industry due to the invention of the assembly line which allowed the mass production of cars and other goods, a concept that was first put to use on the ford Model T. The boom in the car industry was generally good because of the large amount of ancillary companies attached to the car industry. For example in one car there will be tyres so the rubber industry profits, also windows for the glass industry, seats for the leather industry and especially paint. The DuPont paint company, who was responsible for the signature black colour of the model T, is still around today. The assembly line is now also applied to other goods and, in combination with cheap labour usually from the Middle East and often referred to as...
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