Why was there an economic boom in the 1920's?

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

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

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

Natural…