1920s Economic Boom
In the 1920’s there was a financial success, they called this success “The Economic Boom”. The causes for the boom was multiple things, one of the major ones was the production of automobiles. Once America figured out how to produce cars at a faster rate, this not only helped out that industry but it also help improve many more. Because more cars were being produced at a faster rate, many industries like the construction, hospitality, and oil industries increased dramatically.
The first reason for the economic boom was the mass production of cars. The demand for cars increased because people could afford them because the price was lowered once the car industry started to produce them at a faster and cheaper rate. Once more people bought cars …show more content…
The Republicans started to lower the taxes on company profits and income. When they did this it gave Americans more money to spend on buildings and industries. America then started to apply taxes on imported goods, this helped American producers. Laissez-faire was one thing the Republicans highly believed in. Laissez-faire means to leave alone, the Republicans concluded that the government should leave businessmen alone.
American man’s state of mind was the fourth main cause for the economic boom. Because the economy was doing so well, this made man’s perspective change. Many realized that they could purchase things they normally couldn’t. There were new ways for people to pay for the items they wanted and new marketing techniques. This meant people could make a down payment on an item and pay the rest out over time. During this time it was easy for people to borrow money from banks with low interest rates.
The new industries was also one of the main reasons for the economic boom. Because there were so many new industries there was a growth of new products. Because of America having high amounts of natural resources like steel and oil. America was able to produce machinery because they had a lot of steel. The more machinery they made the more production they were able to produce at a lower
The first reason for the economic boom was the mass production of cars. The demand for cars increased because people could afford them because the price was lowered once the car industry started to produce them at a faster and cheaper rate. Once more people bought cars …show more content…
The Republicans started to lower the taxes on company profits and income. When they did this it gave Americans more money to spend on buildings and industries. America then started to apply taxes on imported goods, this helped American producers. Laissez-faire was one thing the Republicans highly believed in. Laissez-faire means to leave alone, the Republicans concluded that the government should leave businessmen alone.
American man’s state of mind was the fourth main cause for the economic boom. Because the economy was doing so well, this made man’s perspective change. Many realized that they could purchase things they normally couldn’t. There were new ways for people to pay for the items they wanted and new marketing techniques. This meant people could make a down payment on an item and pay the rest out over time. During this time it was easy for people to borrow money from banks with low interest rates.
The new industries was also one of the main reasons for the economic boom. Because there were so many new industries there was a growth of new products. Because of America having high amounts of natural resources like steel and oil. America was able to produce machinery because they had a lot of steel. The more machinery they made the more production they were able to produce at a lower