We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Economic Boom of the 1920s Essay

Sorry, but copying text is forbidden on this website!

Only those who know little or nothing about economics and the very naive did not know in the year 1925 that economic hard times follow good times as economic booms and slumps are cyclical. Still, there were various reasons why even seasoned economists may have speculated that economic prosperity of the 1920s would continue forevermore. Machinery, manufacturing plants and “the process of standardized mass production” were the main reasons for the excitement of the 1920s (Schultz and Tischler).

In fact, the economy of the United States continued to grow until 1929. The First World War had encouraged industry to expand. Labor shortages coupled with the need to increase production had stimulated the development of efficient modes of production. Taylorism or scientific management to streamline processes of production in order to increase production capacity had been introduced around the country. With new machinery and management tools, worker productivity was raised. This rise in productivity increased wages, thereby increasing consumption.

Americans were also encouraged to use credit to fuel consumption at the time. The installment plan was an innovation of the 1920s. What is more, the government supported businesses by raising tariffs on foreign goods, reducing personal income tax and corporate tax, repealing taxes on profits, and looking into unfair trade practices as a means to encourage businesses to expand (Schultz and Tischler). The consumer psychology in 1925 was another reason why many may have reasoned that economic slumps are a thing of the past.

We will write a custom essay sample on Economic Boom of the 1920s specifically for you

Order now

Americans had the radio at the time, in addition to a growing motion picture industry to keep their mindsets positive. They also had electric appliances at home and a growing automobile industry making them believe their lives had changed forevermore in a positive direction (Schultz and Tischler). Then again, all those who know about the economic boom bust cycle were aware in 1925 that a slump is sure to follow a boom.

Works Cited

Schultz, Stanley K. , and William P. Tischler. “Civil War to the Present. ” American History 102. 1999. 1 Mar 2009. <http://us. history. wisc. edu/hist

How to cite this page

Choose cite format:

Economic Boom of the 1920s. (2017, Jan 12). Retrieved from http://huseyinzadealituran.com/economic-boom-of-the-1920s-essay

We will write a custom essay sample onEconomic Boom of the 1920sspecifically for you

Our customer support team is available Monday-Friday 9am-5pm EST. If you contact us after hours, we'll get back to you in 24 hours or less.

By clicking "Send Message", you agree to our terms of service and privacy policy. We'll occasionally send you account related and promo emails.
No results found for “ image
Try Our service
online

Hi, I am Sara from Studymoose

Hi there, would you like to get such a paper? How about receiving a customized one? Check it out http://goo.gl/CYf83b

online

Hi, I am Sara from Studymoose

Hi there, would you like to get such a paper? How about receiving a customized one? Check it out http://goo.gl/CYf83b

image

Your Answer is very helpful for Us
Thank you a lot!

Sitemap