The roaring twenties

Question

describe 2 key features of the economic boom in 1920's USA

Answer 1

The Roaring 20s in American History is the best, alliteration for what happens historically. Not only do we see women get the right to vote, but our economics boom in a way that solidifies the American Middle Class and the way credit is used. To truly understand what is happening in this time, let's review quickly some of the events of the previous decade that led us into the 20s.

Henry Ford mass produces cars and creates the assembly line for manufacturing in the early 1900s. This allows other businesses to develop the same technology and speed to in mass production which lowered the prices of goods that use to take years for most Americans to save up for. You also have J.P. Morgan and Rockefeller who become massively wealthy through the hard work of the common American, and thus resulted in unions, workers' rights (which we will get to later in the Great Depression), and working conditions in America taking a front seat for the first time in history. This led to Americans being able to capitalize on World War I and thus grow our economy into the 1920s!

Background information complete and memory jogged? Good! Let's get rolling on the big things to know about the 1920s economically! Key points are as follows:

1. After World War I, the American manufacturing of mass production continues. Common, middle class workers are able to earn and build credit (This is going to be big in nine years, so I am putting it in bold) to get the mass produced goods they would have normally have had to save for years to purchase.
2. America is also seen as a major world player after its involvement in World War I, and leads the trades and stock markets in investment- more foreign money and interest in American economy boosts the economy. The American Steel Industry and building industries also grow in this time because they have the means to supply Europe with the equipment to rebuild
3. Not only do you have foreign investors in the stocks at a record high, but the average, everyday citizenTstarts to put their money into the stock market and profits from the risky, all at in approach with their savings. American moves into a free market economy (vocabulary you should know is underlined)
4. The stock market and open trade allow for the average salary to raise and again, the American Middle Class benefits.
5. By the time the Stock Market collapses in 1929, the United States economy GREW by 42%.

The next lesson will discuss that even though we had record growth and investment in the Roaring 20s, we didn't do a great job as a government in making sure that there were safety nets in place for when the eventual slowing of the economy happens. The Roaring 20s brings us the middle class with credit, free market economy, and investments of all in of the average American. These are the reason for the economic part of the given title of the Roaring 20s.