What Where The Reasons For The Economic Boom Of The 1920s In The USA?

Many American industries boomed in the 1920s. The economy doubled in size. Mass-produced consumer goods poured from the production lines of electrified factories. America soon left the age of the horse behind.

New Consumer Durables such as radios, vacuum cleaners, cars, phonographs (many using electricity) were in demand. This created jobs. People could buy goods on Hire Purchase, paying only an initial deposit and then regular instalments. This stimulated demand. In rural areas, many people bought goods through catalogues at the village store. The Republican government of the time didn't interfere with business life, leaving it free to expand without restrictions.

Import duties on manufactured goods made foreign goods more expensive so more American goods were sold. A construction boom of building skyscrapers, including the empire state building, was made possible by introduction of dumper-truck, concrete mixers, and lorries. New methods of advertising helped increase demand. In addition the film industry in Hollywood and the cinemas created employment.

Add Comment

Report