USA's Economic Boom (1920s)

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USA's Economic Boom (1920s)


  • Isolationism - After WWI, America was very against being involved in Europe's affairs
  • Tarrif Policy - Putting taxes on foreign goods encouraged Americans to buy American goods
  • Mass Production - Involvement of many different industries led to more profit for all involved and goods could be made cheaply and quickly
  • Advertising - Adverts encouraged normal people to buy mass produced goods
  • Laissez-faire - Republican government lowered taxes and had little interference in business activities
  • Credit - People could buy goods and pay in instalments, allowing poorer people to own much more


  • Benefitted - Mass production industry (more jobs and profits), Bankers (more MC people were saving money, credit and laissez-faire), Retail (tariffs, more money and more time)
  • Companies could afford to reduce working hours and increase wages by around 11%
  • Farmers lost money due to the drop in demand for goods after WWI, causing them to go into debt and lose land
  • Immigrants were given low paid jobs in old industries or were unemployed
  • The KKK reformed and terrorised black people

Overall summary

Overall, the Economic Boom in the USA in the 1920s was caused by many factors, including isolationism, tariffs and mass production. This caused many people to benefit (the middle class and mass production industries), while many people suffered (immigrants, farmers and black people).


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