Economic Boom

• America's assets and development


  • Essential supply of natural resources such as timber, iron, coal, minerals, oil and land
  • Immigrants provided a plentiful and cheap work force to utilise these resources
• The USA experienced significant growth during the First World War while European economies suffered
• US banks loaned money to Europe and businesses sold much needed goods during the First World War
• The war provided a stimulus for inventions in production, materials and advertising
• There was a small slump immediately after the war but from 1922 the USA experienced an unprecedented economic boom
• Electricity industry


  • Experienced a huge boom in the 1920s
  • By 1929 the majority of houses in America had electricity and 70 per cent of them used it for lighting purposes
  • Demand for electricity doubled as a result of the development of factories to produce consumer goods
• Mass production


  • Introduced in factories to drive machinery
  • Enabled the production of consumer goods like refrigerators, washing machines, vacuum cleaners and radio sets
• Car industry


  • Best example of mass production during the period
  • Henry Ford pioneered affordable cars for the American people
  • By 1925 the price of a car was around $290, much cheaper than $850 in 1908
  • By 1929 Americans owned 23 million cars
• The car industry boosted the entire economy by creating thousands of jobs, and leading to the building of roads, petrol stations, hotels and restaurants
• Hire-purchase and credit


  A way of borrowing money, allowing people to buy goods and pay for them over time
• Advertisements were used to encourage Americans to take advantage of hire-purchase and credit schemes to buy new consumer goods
• Chain stores and catalogue shopping became fashionable during this period