How Did The New Technology Affect The Economy In The 1920s

Secondly, new technologies such as buying on credit and the use of cars had been introduced to the US during the 1920s. These new technologies were so high in demand that it enabled that mass production of products and goods which led to the need of more advanced infrastructure and industries. However, the expansion of infrastructure and industry resulted in many Americans losing their jobs which increased the poverty rate drastically.

The last sector is that of the Stock Exchange. It was the new craze of Americans to buy and sell shares on the stock market to make a profit; this made the American economy flourish fast and many individuals rich beyond belief. Unfortunately, most there was an abundance of debt and unevenly shared wealth which
Trade tariffs were to persuade people to buy American products by placing high prices on imported goods which most people could not afford. This then led to foreign countries doing the same thing which decreased Americas exporting of goods and were left with an abundance of produced that was not able to be sold to the masses. This also meant that there was an overproduction of agricultural goods which decreased the value of money farmers and farm workers were making. Farmers were paid less than what it took to harvest their crops and lack of money resulted in the loss of farms and farm jobs. This burdened millions of Americans because food supplies were dwindling and unemployment rates were growing.

Eventually, on Tuesday 29 October 1929 – also known as Black Tuesday – the New York Stock Exchange crashed and millions of Americans were now bankrupt and US economy was now in complete ruin. Investors and individuals lost all their savings and found themselves in huge amounts of debt, many banks and factories were forced to shut down which left thousands out of work. Since there was no money, food supplies were decreasing and many went