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Why was there an economic boom in the 1920s? (Policies of Republican…
Why was there an economic boom in the 1920s?
Mass-marketing
Companies spent a lot on advertising
developed techniques to make people buy products
Credit
Mass-production
cars where made cheaply
many could afford buying a car
tyres, glass, metal etc helped the growth of industries
Henry Ford pioneered in car industry
easier for people to buy goods even if they did not have cash in that moment
people could pay by instalment or hire purchase
First World War
USA had supplied Europe with many goods
USA took over European overseas market
New technology
electricity helped the growth of new industries
Natural resources
USA natural resources: iron, coal,minerals and land.
Confidence
americans had confidence to buy goods, invets in companies and try new ideas
it is a key need for economic boom
Policies of Republican Presidents
lowered taxes on income and company profits
industries and buildings had more money to spend on goods
tariffs on imported goods: imports more expensive
no control on financial institutions nor businesses