Was the main reason that US prospered in America the developments in the automobile industry?
In the 1920s, America became the wealthiest country in the world with no obvious rival. Yet by 1930 she had hit a depression that was to have world-wide consequences. But in the good times everybody seemed to have a reasonably well paid job and everybody seemed to have a lot of spare cash to spend. One reason for the economic boom was High Purchase which is where you make a deposit on a item and then you pay of instalments over a period of time until you pay all the worth of the object back with profit on top of the normal price. As the market grew, the stock market became a way of life and was a highly discussed topic among common Americans who were eager to get a piece of the pie. Americans no longer were connected by the common bond of making a life for themselves like at the birth of the nation. The 1920s were an era of revolution in ideas, beliefs, inventions, and ways of living. The nation was totally different after World War I than before. The USA experimented with Prohibition. The jazz age rose from the streets of Harlem New York. Women got the right to vote. The whole of society was convinced that anything was possible, not only in the stock market and finances, but also in every facet of life. Most of this is taken for granted now because what was considered a new idea seems commonplace and because the Stock Market Crash of 1929 overshadowed the great improvements in society. Society's attitude affected Wall Street, though. The large investing firms thought that the government should not be allowed to interfere with the speculation of finances. This is a common feeling when the economy is booming, that the government is always trying to oppress. The exact opposite is seen when the economy is in a depression and everyone turns to the government for help. One of the main causes for the stock market to become dangerous was because large firms or groups of...
Please join StudyMode to read the full document