Using the four passages and your own knowledge, assess the view that the impact of the First World War was the main reason for the booming economy in the USA in the 1920’s

Topics: Economics, World War II, Economy of the United States Pages: 5 (1649 words) Published: April 17, 2014
Using the four passages and your own knowledge, assess the view that the impact of the First World War was the main reason for the booming economy in the USA in the 1920’s (40 Marks)

I believe that the First World War did not have as much of a significant impact on the American economy as mass production, infact i however see that instead of benefiting the economy the War in fact had the reverse effect to that of which interpretation A and C suggest that the war was the most important factor of the 1920’s American economic boom.

Firstly, the biggest reason as to why mass production was the main reason for the economic boom was that the American GNP soaring from $72.4 billion in 1919 to $104 billion 1929 only 15 years after mass production was first implemented in America, the figures show the huge impact that mass production had upon the American economy, this is direct evidence of the huge impact mass production had as opposed to the 3 other interpretations which do not have any direct evidence of the impact they had upon the American economy, this is supporting that mass production had the most important impact on the American economy and shows evidence of why mass production was the main reason for the 1920’s boom.

This leads to a criticism of source A as the interpretation does not refer to The First Wold War costing America over $32 Billion, instead of injecting growth into the economy the war in fact had the reverse effect as less money was available in America leading to slow growth in the economy. Mass production had a positive effect upon economy, boosting its GNP through stimulation of the American retail market. This supports why the War was not beneficial to the economic boom of the 20’s compared to mass production.

Interpretation B states that ‘the key to the boom was a tremendous increase in productivity resulting from technological innovation and the application of scientific management’ this goes against the point that interpretation D suggests that Andrew Mellon was the key figure of the 1920’s boom in America. The reason why scientific management had a bigger impact than Andrew Mellon’s

reforms is because the implementation of mass production saw workers’ pay increased from $710 to $857, whereas Mellon's reforms were based upon the banking in America which had little effect upon all classes whereas mass production benefited all classes of society. Also the scientific changes to production and the national scale it happened saw upon America begin to prosper and boom far before Andrew Mellon's policies were implemented, after which there was little impact by Mellon's policies as opposed to mass production which propelled the boom this supports the fact that mass production was the key reason for the booming economy in America.

Mass production was the main reason for the economic boom is because once it was introduced in 1914 just a few years later there became a clear direct change to Americas economy as interpretation B states ‘Although the population grew by only 16% during the decade, industrial production almost doubled’ The increase in production saw the American economy begin to produce more and more goods, leading to a sharp increase in jobs, sales and profits. This supports my point that mass production was the most important factor to the American economic boom.

Further support for mass production being the catalyst for the economic boom is because once production in mass was introduced in 1914 just a few years later there became a clear direct change to Americas economy as interpretation B supports ‘Although the population grew by only 16% during the decade, industrial production almost doubled’ The increase in production saw the American economy begin to produce more and more goods, leading to a sharp increase in jobs, sales and profits. This backs up the point that mass production was the most important factor to the American economic boom.

Another point why mass...
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