The Roaring 1920s Essay

514 WordsNov 24, 20133 Pages
Shanice Archer 20th Century American History Prof. Stuart Collins 11/24/13 The Roaring 1920s The question is often asked, “How should the economy of the 1920s be characterized and what factor made it “roar”?” Well, during this period of time, America experienced a great shift with the widespread business expansion and prosperity within the economy. Due to the economic expansion, it helped created new businesses which resulted in soaring business profits and made the living standards for Americans to change drastically. Many Americans were living well and America was definitely reaping the benefits of the new, thriving economy. During this period of time in America, many business owners wanted to push laissez-faire economics. This meant that there would be less regulation of businesses from the government and also less government support for labor unions. In response to this, the federal government started to support huge businesses by having major cutbacks in the Federal Trade Commission (FTC). Also, the income of the US increased from 40% from $60.7 billion to $87.3 billion, during the years of 1922-1929. This is why this time period was called “The Roaring Twenties”. There was another factor that contributed to this time period. The war rejuvenated many old industries such as the petroleum and the steel industry. By revamping these industries it help created new industries such as plastic and rayon production. However, by using the labor saving machinery in factories and on the farms it helped give workers the ability to produce even more goods faster and less expensive. This led to higher amounts of production and also worker productivity and it helped increased the income of the workers. There were many new businesses that were really thrived and became very prosperous in the 1920s, especially the automobile industry, which the economy to “roar”

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