Why was there a boom in the 1920's? - millie8988
- Created by: Millie8988
- Created on: 17-04-17 15:46
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- Reasons for Economic Boom in the 1920's
- INDUSTRIAL
- USA rich in natural resources so America didn't need to import goods.
- This meant money was kept in the US and would promote their economy
- America sold munitions and weapons to Europe during WW1
- USA rich in natural resources so America didn't need to import goods.
- POLITICALLY
- 'LAISSEZ FAIRE' meant government didn't interfere in the work of business.
- Set high import tariffs so people would be more inclined to buy American. Trade would then stay and increase in the US.
- Trusts were set up. They were super corporations that dominated a single industry. They could do what they wanted.
- SOCIALLY
- People got more money and were willing to spend more money on consumer items. Luxury industries and this created more industries.
- New and growing industries meant more jobs available - increases employment rates
- Amercian's believed they had the 'right to prosperity (a nice house, job and plenty of food and to spend money on 'luxuries'). Spending money and improving the economy became a trend.
- This lead to further economic growth and making industries stronger.
- INDUSTRIAL
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