How Far Did The Us Economy Boom In The 1920’s?

How far did the US economy boom in the 1920’s?



In the 1920s some say that the US went through an economic ‘boom’, hence a popular name for this time period ‘the roaring 20s’. There is evidenceto suggest why it boomed but, as always with history essays, there is evidence to suggest that the US didn’t ‘boom’.

Weak trade unions helped the US economy boom. The fact that they had verylittle power to organise strikes, protect there workers etm. meant the workers were paid very little for very long hours, this meant that more products were made in the US so, the economy boomed. Also,tariffs on foreign imports boomed the US economy. Factories (such as Ford) bought parts from other countries, tires for instance, because they were cheaper. This meant that the US tire manufacturers (inthis instance) lost money to the foreign companies. The US government put taxes on foreign imports and thus, the factories bought their parts from the US and this increased profits. The First WorldWar played a huge role in making the US the most powerful country in the world- economically. The First World War helped the US economically because other countries owed it vast amounts of money fromthe war. Also the US traded with the European countries colonies as the affected countries didn’t have the resources that the US had. This increased US profits because they made money out of the othercountries’ debt and colonies. America’s natural resources helped their profits rise. America was (and is) rich in natural resources like: oil, wood, rubber etm. Thus America did not need to import rawmaterials; this meant that the US companies that produced and sold the resources boomed the US economy, and the companies making products saved money on tariffs. The stock market increased profits inAmerica as well. As stocks were rising many people borrowed money from the bank, invested it in a company, made a profit and paid back the bank. This meant that more people had money in their...