The Reasons For American Economic Prosperity In The 1920s :: essays research papers

Why was at that place economic prosperity in American in the 1920s?I know that America on its surface was prosperous during the 1920s. I know this because of the physical signs, and the evidence I have found substantiate up this concept. Some of the physical signs of the then prosperity are evident today, wish well the skyscrapers and Empire State building. There were the inventions of manufactured fabrics and materials such as Bakelite, drippy silk and Cellophane. Airlines carried almost half a million passengers a year, which compared to Europe at the same time, was a massive number of people. In this essay I will analyse exclusively the reasons behind the economic prosperity in 1920. World War 1 assisted Americas last mentioned prosperity. Throughout the war American industry benefited, because countries that couldnt buy goods from Europe, did so from America. And along with this Europe bought products from America, products that they werent producing while they were fight ing. Further more(prenominal), during the First World War, American banks lent money to their European Allies. In the 1920s, this was being paid back with interest. The war had also led to advances in technology, such as tool and manufactured materials. Production of Iron Ore, coal, petrol and wheat and exportation of chemicals, wheat, crusade and steal all had increase considerably by the end of the war. By the end of the war, America had decided to isolate itself from the problems of Europe, and set itself about making the most profit in business. This isolationism built up the confidence of the American people. An increase in personal wealth, demand and output production all helped Americas prosperity. Banks were eager to lend money to businesses and individuals. With this slack money, and the introduction of hire-purchase schemes, the demand for products increased. Consumer spending was incredibly high, which is reflected in the statistic that in 1920 there were 312 departmen t stores, and by 1929 there were 1395. There was a consumer boom. subscriber line profits rose by 80% during this period, which in turn elevated share dividends by 65%. Also some women had continued functional as they had done through the war. Both of these elements contributed to giving people again, more money to spend. However, the availability of money was not the only reason for increased consumer spending. New inventions such as vacuum cleaners, refrigerators and washing machines became available, and advertising everyplace the popular radio encouraged consumers to spend more on nonchalant products.