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Why was there an economic boom in the USA in the 1920s? (Policies of the…
Why was there an economic boom in the USA in the 1920s?
Natural Resources
America was able to provide wood, iron, coal, minerals, oil and land, that the growing industries needed
World War One
USA was able to take over European overseas markets and supply Europe with many goods during WW1
The War looked for technological change (open for new industries) , a need which the USA could exploit
Policies of the Republican President
Bussinesses were able to expand without governemnt restriction
Pro-business policies
Taxes on companies´ incomes and profits were lowered
They supported national products
No control on financial institutions
Credit
People were able to buy things that they couldn´t pay on the spot
Firms could provide services with an installment payment or hire purchase
New technology
Modernized industries and helped to develop new ones
Cheaper and more efficient source of power for factories
More consumption of consumer goods like refrigerators, vacuum cleaners and radios
Mass Production
Goods could be produced cheaply and on a larger scale
Mass Marketing
Large amounts of money were spent on marketing, for mass produced goods
People were persuaded to buy with sophisticated techniques
Mail order companies were able to provide to people in the countryside a wide range of products´ offers.
Confidence
There was confidence in buying goods, and investing in companies