Why was there an economic boom in the 1920's? 0.0 / 5 ? HistoryThe USA - twentieth century changeGCSEAQA Created by: flo.wCreated on: 12-04-14 16:53 First World War America's neutrality extended to a policy of fairness - American bankers could lend money to both sides in the war sold arms, munitions and food to Britain and France this one way trade gave the American industry a boost Americans were able to take over Europe's trade around the world 1 of 8 Industry the USA became the world's most successful chemical industries explosives manufacture during the war also stimulated a range of by-products which became new American industries in their own right eg plastic 2 of 8 Short conflict USA was not part of the war long enough to drain American resources war inustries readjusted to peacetime temporarily by the 1920's the American economy was growing once again 3 of 8 Natural resources they had a plentiful supply of raw materials such as coal, oil, wood and iron these resources had provided the foundation for US economic growth in the years before WW1 4 of 8 Cheap labour force continuous immigration from Europe this provided plentiful cheap labour from Germany, Scandinavia, Italy, Poland, Russia, Ireland, China and Japan 5 of 8 Technological change development of electricity waas fundamental to developments in technology electricity was a cheaper and more reliable form of power for factories and industries production of electrical goods, fridges, radio and vacuum cleaners conveyer belt and mass productionadopted the car industry new plastics used in household these innovations sped up industrial production and lead to greater profits 6 of 8 Consumerism 1923-1929 the average wage rose by 8% this was enough for some workers to afford luxuries these goods are often bought on credit under a sceme known as hire 7 of 8 Confidence many americans had confidence in their country's economy and were prepared to buy American goods most Americans believed prosperity was a right and not a priviledge people were encouraged to spend, not be thrifty 8 of 8
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