The Economic Boom
“One of the oldest and perhaps the noblest of human activities has been the abolition of poverty…we in America today are nearer to final triumph over poverty than ever before in the history of any land.” Herbert Hoover, 1928 The economic boom (the period of economic prosperity typically placed (1921-1929) was caused by an expansion in industry, which led to more jobs and an increase in disposable income. Many changes took place in the 1920's. Growth of mass production in industry, technological advances, and the increasing efficiency of labour boasted a gain in industrial production by over 60%. Because of this prosperous economy, the wealth of a typical family skyrocketed and led to the consumption of more consumer products. As a result of an improvement in three factors of production (machines, factories, and standardized mass production), national personal income rose dramatically, wages were up, workdays and workweeks were shorter, industrial production doubled, and there was a steady expansion of economic growth. A new name was given to the decade of the 1920's to reflect the prosperity and the new opportunity presented in the aftermath of World War I. Under president Warren G. Harding, , who urged a "return to normalcy" after the war, many conservative policies (especially regarding taxes, tariffs, immigration restriction, labour rights, and business regulation) shaped the face of the post-war world. Marked by corruption and scandal, Harding's administration lasted until his death from a stroke in August, 1923. While doing little as Harding's vice president, Calvin Coolidge acted quickly to repair the damage caused by the Harding scandals and was easily elected as president in 1924. Some of his popular policies included cutting federal taxes and maintaining high tariffs. Before being elected to the presidency in 1928, Hoover had served as secretary of commerce under both Harding and Coolidge. Helped by the prevailing prosperity in major...
Please join StudyMode to read the full document