Why was there a boom in the 1920's? - millie8988

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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
    • 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.

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