Reasons for the Economic Boom in 1920s Usa

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Reasons for the economic boom in the 1920s America experienced an economic boom after World War 1 ended because of many different factors. There was a rapid increase in industry and this caused many more people, including women to become employed and to earn their own money. Many new industries were created in the 1920s; one of the rapidly increasing industries was the car industry. Henry Ford revolutionised the production of cars by creating mass production. This meant that people had one specific job on the production line that they repeated over and over so they became very good at this one job, this meant that the T-ford model could be produced every 10 seconds. Henry For could then sell these cars for much a cheaper price than before because it used to take blacksmiths hours to produce a single car. This mass production also provided many people with jobs. People felt that they could buy cars at this cheaper price and therefore more cars were bought, putting more money into the economy. The car industry also helped the economic boom because more people could move near to cities without actually living in the centre of them and then drive into the cities to work and earn money. The car industry was quite important because it kick started many other industries such as the advertising industry. Another reason for the economic boom was the Republican government policies. Their policies included laissez-faire; this was when the government kept out of businesses and didn’t interfere with them. This meant that there was no minimum wage and women had to quit their job if they became pregnant as there was no maternity leave. This links in with the car industry as laissez-faire meant that Henry Ford could set his own employment rules and pay what they wanted. Another policy was import tariffs; this meant that it was expensive to import foreign goods so American people

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