The Economic Boom

The causes and consequences of the economic boom in the 1920's and how it effected America in the way that it did

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Causes & Consequences of the Economic Boom


  • During the First World War, America provided Europe with supplies and arms
  • President Harding's Republican policies- isolation, tariffs and low taxes
  • Consumer goods- goods for ordinary families to buy (often household items)
  • The Ford Car Industry became involved in mass production- producing an item quickly and cheaply


  • When Europe paid them back, America became more wealthy, confident and prosperous
  • Allowed America not to get dragged into a war and low taxes meant that people could spend more money on consumer goods
  • Consumer goods gave people a better way of life. By 1927, two-thirds of US homes had electricity
  • The Ford Car Industry created many jobs and by 1924, 10 million cars had been produced

Overall summary

The economic boom helped to create many jobs and gave the American citizens a better way of life. People were prosperous and bought things which led into the age of consumerism


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