How far did American society boom in the 1920s?
Between 1921 and 1924, America’s GNP jumped by 40% from $69 billion to $93 billion. This is a very
dramatc increase, which was helped by Wporld Wpar One. New found technologyy was used to create new
consumer gyoods and new markets were found in Europe. This power combinaton led to America takingy
the ttle as the world’s largyest industrial power. The Republican gyovernment really helped to boost
industry, as the party favoured bigy businesses. In 1922, a policy of protectonism ensured that import
dutes were raised. The aim was to reduce foreigyn imports, thus securingy a market for American gyoods.
There was a largye spread of suburbia, which was catalysed by the vehicle revoluton. Not only did the
populaton of the cites increase, but the facilites also improved. Between 1920 and 1930, the number of
families with fushingy toilets rose from 20% to 51%. Many Americans became more confdent with the
economy, so they started to invest in shares and purchase luxury consumer gyoods. Many ordinary
Americans, who were prudent duringy the war, were now willingy to purchase cars and other luxury gyoods
on credit, with up to 5 years of monthly payments. The new philosophy of the boom was "live now and
pay later". Share prices dramatcally rose and people were gyetngy richer. Tales of ‘gyet-rich-quick’
schemes both in land sales and the stock market, encouragyed people to invest, even by buyingy ‘on the
margyin.’ As more people invested, prices of share also rose, thus boostngy profts.
However, it is a common misconcepton that everyone in America benefied from the boom. The boom
was mainly city based, with many American civilians actually becomingy worse of in this tme period. The
urban world was dominated by immigyrants and black industrial workers, which led to confict with white
Protestants in rural America. There was a dramatc juxtapositon between the consumerism and wealth
in the cites and the old agyricultural SSA, with oil lamps and water from the well. Farmers did not
prosper, because new machines had a beier rate of producton, but with lower prices. Many of the black
populaton were dismissed by the farmers, forcingy them to move to the town. Yet in the city, they were
gyiven low paid jobs in overcrowded conditons, so not everyone in the urban areas prospered.
Wphen the gyovernment raised import dutes, they did not fully consider the outcome. The higyh tarifs
were mirrored abroad in retaliaton, leadingy to overproducton in America, as they had a smaller foreigyn
market. Many farmers were in fnancial ruin.
The stock market also caused concern. There were 20 million shareholders in the summer of 1929, as
prices peaked. Nevertheless, car and steel producton fell, therefore causingy the share prices to fall.
Between Saturday 19th and Thursday 24th October millions of shares were sold, as people feared that
they would make a loss. Top bankers decided to support the market, so the bankingy frms bougyht
millions of shares for more than they were worth, to try and prevent a crash. Despite this, 9 million more
shares were sold on the followingy Monday and the stock market lost the banks support. Black Tuesday
marked the stock market crash. The tcker tape machines broke due to the pressure, as 16 million more
shares were sold. America was in fnancial ruin, which was in stark contrast to the boom earlier on in the
decade.
Overall, the economic boom certainly boosted American economy initally, but this increase was not
sustainable, inevitably endingy in the Wpall Street Crash. Wphilst some American civilians really ‘gyot rich
quick,’ about 50% of Americans stll had an annual income of less than $2000, showingy that the boom did
not beneft everyone. Yes, society did boom, but not for longy and eventually America was lef in a more
economically vulnerable positon. However, in terms of technologyy and consumerism, America advanced
terrifcally and afer the boom, life was never the same agyain.
Between 1921 and 1924, America’s GNP jumped by 40% from $69 billion to $93 billion. This is a very
dramatc increase, which was helped by Wporld Wpar One. New found technologyy was used to create new
consumer gyoods and new markets were found in Europe. This power combinaton led to America takingy
the ttle as the world’s largyest industrial power. The Republican gyovernment really helped to boost
industry, as the party favoured bigy businesses. In 1922, a policy of protectonism ensured that import
dutes were raised. The aim was to reduce foreigyn imports, thus securingy a market for American gyoods.
There was a largye spread of suburbia, which was catalysed by the vehicle revoluton. Not only did the
populaton of the cites increase, but the facilites also improved. Between 1920 and 1930, the number of
families with fushingy toilets rose from 20% to 51%. Many Americans became more confdent with the
economy, so they started to invest in shares and purchase luxury consumer gyoods. Many ordinary
Americans, who were prudent duringy the war, were now willingy to purchase cars and other luxury gyoods
on credit, with up to 5 years of monthly payments. The new philosophy of the boom was "live now and
pay later". Share prices dramatcally rose and people were gyetngy richer. Tales of ‘gyet-rich-quick’
schemes both in land sales and the stock market, encouragyed people to invest, even by buyingy ‘on the
margyin.’ As more people invested, prices of share also rose, thus boostngy profts.
However, it is a common misconcepton that everyone in America benefied from the boom. The boom
was mainly city based, with many American civilians actually becomingy worse of in this tme period. The
urban world was dominated by immigyrants and black industrial workers, which led to confict with white
Protestants in rural America. There was a dramatc juxtapositon between the consumerism and wealth
in the cites and the old agyricultural SSA, with oil lamps and water from the well. Farmers did not
prosper, because new machines had a beier rate of producton, but with lower prices. Many of the black
populaton were dismissed by the farmers, forcingy them to move to the town. Yet in the city, they were
gyiven low paid jobs in overcrowded conditons, so not everyone in the urban areas prospered.
Wphen the gyovernment raised import dutes, they did not fully consider the outcome. The higyh tarifs
were mirrored abroad in retaliaton, leadingy to overproducton in America, as they had a smaller foreigyn
market. Many farmers were in fnancial ruin.
The stock market also caused concern. There were 20 million shareholders in the summer of 1929, as
prices peaked. Nevertheless, car and steel producton fell, therefore causingy the share prices to fall.
Between Saturday 19th and Thursday 24th October millions of shares were sold, as people feared that
they would make a loss. Top bankers decided to support the market, so the bankingy frms bougyht
millions of shares for more than they were worth, to try and prevent a crash. Despite this, 9 million more
shares were sold on the followingy Monday and the stock market lost the banks support. Black Tuesday
marked the stock market crash. The tcker tape machines broke due to the pressure, as 16 million more
shares were sold. America was in fnancial ruin, which was in stark contrast to the boom earlier on in the
decade.
Overall, the economic boom certainly boosted American economy initally, but this increase was not
sustainable, inevitably endingy in the Wpall Street Crash. Wphilst some American civilians really ‘gyot rich
quick,’ about 50% of Americans stll had an annual income of less than $2000, showingy that the boom did
not beneft everyone. Yes, society did boom, but not for longy and eventually America was lef in a more
economically vulnerable positon. However, in terms of technologyy and consumerism, America advanced
terrifcally and afer the boom, life was never the same agyain.
