1920's Economic Boom
Credit, World War One, government policies and technological advancements all had positive effects on the US economy, contributing to the boom of the 1920s. The factor of government policies played a big role, with, for example the Ford-McCumber Act 1922 which raised tariffs to force domestic purchases in the US. While speculation grew after World War One, it was the availability of easy credit that allowed the average consumer to speculate on the stock market. Henry Ford’s manufacturing was a major cause of the boom as he raised the daily rate of pay which in turn made the consumer richer. With his new manufacturing techniques, Ford reduced the cost of his car making it available to millions more people who could then use credit to buy. David Cannadine looks at the role of government and says that Mellon’s taxes allowed the good times to
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The two biggest examples was car production and the extensive availability of electricity and each exponentially provided goods to consumers. Whilst it is true that government policy helped corporations with its lassie faire system and tariffs such as the Ford-McCumber Act 1922, the government didn’t stop the economic depression that affected farmers during the 1920s and their policies ultimately caused the Wall Street Crash. In terms of World War One, it was a catalyst that set the US on the path to a boom with its loans to the allies and the ‘second industrial revolution’ that came about from the armaments and munitions factories. However it was not the main cause it in fact caused the ‘mini’ depression in 1921-22. The mass availability of credit gave money to people to buy the newly mass produced goods which only became so readily available form advances in technology such as the production line, accredited to Ford. This all clearly shows that technological advancements were the main cause of the US economic boom in the
The two biggest examples was car production and the extensive availability of electricity and each exponentially provided goods to consumers. Whilst it is true that government policy helped corporations with its lassie faire system and tariffs such as the Ford-McCumber Act 1922, the government didn’t stop the economic depression that affected farmers during the 1920s and their policies ultimately caused the Wall Street Crash. In terms of World War One, it was a catalyst that set the US on the path to a boom with its loans to the allies and the ‘second industrial revolution’ that came about from the armaments and munitions factories. However it was not the main cause it in fact caused the ‘mini’ depression in 1921-22. The mass availability of credit gave money to people to buy the newly mass produced goods which only became so readily available form advances in technology such as the production line, accredited to Ford. This all clearly shows that technological advancements were the main cause of the US economic boom in the