Herbert Hoover's Economic Boom

The Economic Boom
“One of the oldest and perhaps the noblest of human activities has been the abolition of poverty…we in America today are nearer to final triumph over poverty than ever before in the history of any land.” Herbert Hoover, 1928
The economic boom (the period of economic prosperity typically placed (1921-1929) was caused by an expansion in industry, which led to more jobs and an increase in disposable income. Many changes took place in the 1920's. Growth of mass production in industry, technological advances, and the increasing efficiency of labour boasted a gain in industrial production by over 60%. Because of this prosperous economy, the wealth of a typical family skyrocketed and led to the consumption of more consumer products. As a result of an improvement in three
factors of production (machines, factories, and standardized mass production), national personal income rose dramatically, wages were up, workdays and workweeks were shorter, industrial production doubled, and there was a steady expansion of economic growth.
A new name was given to the decade of the 1920's to reflect the prosperity and the new opportunity presented in the aftermath of World War I. Under president Warren G. Harding, , who urged a "return to normalcy" after the war, many conservative policies (especially regarding taxes, tariffs, immigration restriction, labour rights, and business regulation) shaped the face of the post-war world. Marked by corruption and scandal, Harding's administration lasted until his death from a stroke in August, 1923. While doing little as Harding's vice president, Calvin Coolidge acted quickly to repair the damage caused by the Harding scandals and was easily elected as president in 1924. Some of his popular policies included cutting federal taxes and maintaining high tariffs. Before being elected to the presidency in 1928, Hoover had served as secretary of commerce under both Harding and Coolidge. Helped by the prevailing prosperity in major areas of the country, Coolidge continued many of the popular policies upheld by Harding and Coolidge. Having been in office just a few months when
the Great Depression began, he inevitably lost the election to Franklin D. Roosevelt in 1932. The stock-and-bond markets began to be more active, and by mid-decade thousands of Americans who had never invested before were following the market avidly. In a 1929 study which asked respondents to name the most prestigious occupation, stockbrokers were the clear choice, far ahead of physicians or lawyers.
However, not every American benefit from the boom in the early 1920s. In fact, more unemployment is created through the boom than new employment. Older industries such as farming, coal, leather and textiles suffered greatly. In America, 60 million are involved in the farming industry, most of them unskilled workers who live in rural areas, once they were forced off their land; they migrated to cities where there was little demand for their labour. Leather and textiles industry are facing serious competition from other countries where there are cheaper labours. While old industries begins to collapse, new industries such as car, telephone and radio are taking over, those ‘new industries’ requires less labour, seeing their production lines relies on machines. The statement above states that “America today is nearer to final triumph over poverty than ever before in the history of any land.” This might be true; however, 42% of Americas are still living below the poverty line. Majority of the Americans’ wages did not increase on the same scale as company profits or dividends paid to shareholders. To draw the conclusion, I would say that, only a few Americans – such as shareholders and company owners – benefits from the economic boom, while majority of Americans are still under the poverty line. In my opinion, America has a long way to go until their triumph over poverty.