Why was there an Economic Boom in the 1920’s?

• Reasons for economic boom in the 1920s

  • Advertising and the consumer society: New advertising techniques encouraged people to spend
  • Hire Purchase: Paying for products in installments allowed people to buy luxury goods
  • Mass production: Goods made on a large scale in factories using machines rather than skilled workers, making them cheaper
  • Henry Ford and the motor industry: Used assembly lines and mass production, reducing car costs so more people could afford them
  • Republican Policies: Laissez-faire approach, Fordney McCumber tariff, and low taxes allowed businesses to make profits and workers to spend
  • Stock market boom: Republican policies and the motor industry boom encouraged investment
• In what ways we’re there inequalities of wealth?

  . Farmers: Farmers struggled in the 1930’s as demand for food fell dramatically after WW1

  . Workers in old industries: Workers in coal and textiles industries lost their jobs. New technologies eg electricity and new materials eg nylon replaced workers in the coal and textile industries

  . Unemployment and the poor: The laissez-faire approach of the Republicans meant they did very little to help the poor, believing that the situation would sort itself out. African Americans and immigrant groups were most likely to be unemployed in the 1920’s