What Caused The Economic Boom In The 1920's
The economic boom in the 1920's was a period in American history often referred to as the 'Roaring Twenties'. The word 'boom' portrays the rapid increase in the wealth of a country thus showing that America utterly became economically wealthy. This boom also changed the society's attitude to think on a wider perspective and boost their much-needed confidence. The boom was initially caused by three main factors- The World War 1, New Ideas and Industries, and Republican Policies.
The World War 1 in 1914 when the war broke out in Europe, was the most vital long-term cause of America’s Boom. There were two main reasons why the first world war caused a spark in America’s economic Boom. First, the war was fought in Europe which meant that European …show more content…
There was a mass production of automobile goods in America during that time that brought the prices down and also helped to create a larger number of well-paid jobs. There was a sale of 23 million cars in America by 1929, which meant that roads had to be created. This caused a knock on effect which meant that new jobs had to be created for building roads, along with roadside diners, gas stations and hotels. All these jobs were well paid and the unemployment rate was at its lowest during the time, showing that America’s economy was growing at a rapid pace. As people were earning high income, they could now afford to buy houses and thus this too created jobs for people to build the homes. This was when there was an introduction of electric power helped new industries to prosper. Moreover, it allowed the new industries to prosper too as it opened a new market for electric appliances in home. Many Americans during this time started investing a lot of money on buying shares which created a bullish market and provided extra finance for industries and also helped businesses to grow. However, all these benefits would have not been possible without Advertising. Advertising helped businesses and industries to attract consumers to buy their goods and services and caused the economy to grow. Advertising was also a tool of motivation for people to work harder so that they can buy more goods. All of these factors were what sparked the Economic Boom in
The World War 1 in 1914 when the war broke out in Europe, was the most vital long-term cause of America’s Boom. There were two main reasons why the first world war caused a spark in America’s economic Boom. First, the war was fought in Europe which meant that European …show more content…
There was a mass production of automobile goods in America during that time that brought the prices down and also helped to create a larger number of well-paid jobs. There was a sale of 23 million cars in America by 1929, which meant that roads had to be created. This caused a knock on effect which meant that new jobs had to be created for building roads, along with roadside diners, gas stations and hotels. All these jobs were well paid and the unemployment rate was at its lowest during the time, showing that America’s economy was growing at a rapid pace. As people were earning high income, they could now afford to buy houses and thus this too created jobs for people to build the homes. This was when there was an introduction of electric power helped new industries to prosper. Moreover, it allowed the new industries to prosper too as it opened a new market for electric appliances in home. Many Americans during this time started investing a lot of money on buying shares which created a bullish market and provided extra finance for industries and also helped businesses to grow. However, all these benefits would have not been possible without Advertising. Advertising helped businesses and industries to attract consumers to buy their goods and services and caused the economy to grow. Advertising was also a tool of motivation for people to work harder so that they can buy more goods. All of these factors were what sparked the Economic Boom in