Why Was There An Economic Boom In 1920S America?

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Why was there an economic boom in 1920s America? In the 1920s the USA went through a period of economic prosperity called the boom. During this event America was the richest country in the world. New inventions were developed that no one had ever seen before like fridges, cars and vacuums. New materials were being discovered. People were moving to the suburbs because there was more space. America was expanding. Factors that led to this event were the cycle of prosperity, raw materials, mass production, the motor industry, credits, new technology, government policies, advertising, wages rises and steady prices, weak unions, share and the First World War. The most significant cause of the boom was raw materials. All these events are all linked to raw materials; without this America wouldn’t have become prosperous. I will be explaining the reason for this. The most important cause of the boom was because of raw materials. Without this factor America couldn’t have had any money to cause the boom. Firstly, without raw materials America wouldn’t be able to provide all the services they provided in the First World War. In the First World War America traded goods and weapons from their raw materials to European countries. Without raw materials America wouldn’t able to have that extra money boost that help the boom happen. Secondly, without raw materials would have never happened. Raw materials caused new technology to increase especially the car, because there was much material to make the cars with; many people were buying cars, cars were one of the most sold products in the whole boom. This contributed to the economic boom. This then led to other industries being created; steel, glass, rubber and leather. This then created more jobs for people because jobs in road building were created, jobs in oil industries were created and jobs in diners, hotels and gas stations
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