Thursday, May 30, 2019
The Reasons For American Economic Prosperity In The 1920s :: essays research papers
Why was there economic prosperity in American in the 1920s?I know that America on its surface was prosperous during the 1920s. I know this because of the physical signs, and the evidence I realize found supporting this concept. Some of the physical signs of the then prosperity are evident today, like the skyscrapers and Empire State building. There were the inventions of manufactured fabrics and materials such as Bakelite, artificial silk and Cellophane. Airlines carried almost half a million passengers a year, which compared to Europe at the same time, was a massive number of people. In this essay I will analyse all the reasons behind the economic prosperity in 1920. World War 1 assisted Americas latter prosperity. throughout the war American industry benefited, because countries that couldnt buy goods from Europe, did so from America. And along with this Europe bought products from America, products that they werent producing while they were fighting. Furthermore, during the Firs t World War, American banks lent notes to their European Allies. In the 1920s, this was being paid back with interest. The war had also led to advances in technology, such as mechanism and manufactured materials. Production of adjure Ore, coal, petrol and wheat and exportation of chemicals, wheat, iron and steal all had increased considerably by the end of the war. By the end of the war, America had decided to assign itself from the problems of Europe, and set itself about making the most profit in business. This isolationism built up the confidence of the American people. An increase in personal wealth, demand and yield production all helped Americas prosperity. Banks were eager to lend money to businesses and individuals. With this easy money, and the introduction of hire-purchase schemes, the demand for products increased. Consumer spending was incredibly high, which is reflected in the statistic that in 1920 there were 312 department stores, and by 1929 there were 1395. There was a consumer boom. Business profits rose by 80% during this period, which in turn raised(a) share dividends by 65%. Also some women had continued working as they had done through the war. Both of these elements contributed to giving people again, more money to spend. However, the availability of money was not the only reason for increased consumer spending. New inventions such as vacuum cleaners, refrigerators and washing machines became available, and advertising over the popular intercommunicate encouraged consumers to spend more on everyday products.