Explain why the US economy ‘boomed’ during the 1920’s? An economic boom is the rapid growth in a country’s money making that leads to increased prosperity and wealth. The 1920’s was a time of extreme highs and lows, a time of dramatic changes in society and many new inventions. Many American industries boomed in the 1920s, with the economy doubling in size. This economic boom was based around consumer goods-luxury items that many Americans wanted to buy but didn’t really need.
The development of these technologies changed transportation, manufacturing, and even communication. These technologies also contributed to creating huge factories, through standardization, and thus furthering urbanization. The assembly line was a massive factor in industrialization, although it was invented pre-civil war; it allowed the mass production of goods and increased worker efficiency. People were now able to afford things that only the wealthy would have been able to afford in the past. On the other hand, the assembly line did indeed deskill many workers, and further reorganized how the people made a living.
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.
The G.I bill (Servicemen's Readjustment Act) provided veterans with money, college tuition, and low interest loans so that they could buy homes. This contributed to the economy because soldiers returning home had money to spend. Another reason for the economic boom was new technology being invented that people wanted to buy. * In general the prosperity level of all sections of society increased. This brought about basic changes in lifestyle of Americans.
In the years 1890-1914 in America, big businesses had a great impact on the growth of the economy. By the 1890 America was a booming economy due to the Steam Revolution of the 1830’s to the 1850’s, and the railroads supporting the growing US economy. Other factors are a huge number of unskilled and semi- skilled labour, talented entrepreneurs and the government willing to aid at all levels to stimulate economic growth. There are many factors suggesting that it was due to the rise of big businesses. One of them being that big businesses dominated the American economy, due to the chance of vertical integration.
This ment people went to places more and this caused people to become more open to see the countryside more. Travelling therefore helped improve the minds of the American car owners. While car ownership did have a major role in the improvement in the way of life for Americans it wouldn’t have happened without the other factors. The new consumer goods encouraged more people to by radios and cars, high employment gave people money to spend sometimes on the
 There was also a rise of leisure time, emergence of an urban middle class, technological advances, and an increase of wages. The twenties saw an increase of consumer spending. Many wages were spent on cars, radios, and household appliances. The economy was booming. Workers were making enough money to have some leisure spending and time, and industries were taking advantage of this by catering to these new audiences.
Never before had technology, transportation, and communications come together to allow for such exponential growth on a global scale. The pace of this second Industrial Revolution grew faster than society’s ability to maintain a level playing field. This allowed visionaries like John Rockefeller and others to, in a way, run roughshod over what were considered fair practices in American
Apart from the social injustices, the progression and good far outweighed the bad. It was two steps forward and one step back while the economic effects were one huge leap forward and a just as big step back. There were more than a handful of inventions and discoveries that revolutionized American society, led to urban sprawl, made tasks exponentially easier, and were the centerpiece for recreation. Cars were mass produced and people decided to live outside the cities and take vacations more frequently. They produced many new jobs with the need for new roads since the American landscape was drastically expanding.
So, people think they can get more opportunities in the big cities which rise abruptly in succession. Then they began to move to urban. The consequence of this is the population of people are much more than the population of rural area. On the other hand, the improvement of agriculture is also very important effect of in industrial revolution. Although more people come to urban area and join the industry, but the provisionment hadn’t decrease or stop.