History – American Economic Boom Revision
Q. Why did the US economy boom in the 1920s? (8 marks)
One reason why the US economy boomed in the 1920s was because of the first world war. The USA
was the richest country coming out of the war in 1918, this was partly due to the fact that they only
joined in 1917. Therefore, the country did not suffer in a drain of resources or damage to the same
extent as other European countries. America had also sold weapons and food to Great Britain and
France. Whilst Europe focused on fighting, American businesses were able to take over their trade.
For example, they had loaned huge sums of money to Britain, France and other allies, and this would
all be repaid with interest.
Another reason why the US economy boomed in the 1920s was because of their natural wealth and
being rich in natural resources such as coal, oil and having large amounts of fertile land for farming.
It had hug steel, coal and textile industries and the development of new technology such as cars and
electrical goods. America also had a growing population of around 123 million by 1923. As a result of
this, most American companies had access to the resources they needed in the USA and were able
to sell the goods they produced inside America.
Both of these factors largely contributed to the economic boom of the 1920s.
Q. Why did the US economy boom in the 1920s? (8 marks)
One reason why the US economy boomed in the 1920s was because of the first world war. The USA
was the richest country coming out of the war in 1918, this was partly due to the fact that they only
joined in 1917. Therefore, the country did not suffer in a drain of resources or damage to the same
extent as other European countries. America had also sold weapons and food to Great Britain and
France. Whilst Europe focused on fighting, American businesses were able to take over their trade.
For example, they had loaned huge sums of money to Britain, France and other allies, and this would
all be repaid with interest.
Another reason why the US economy boomed in the 1920s was because of their natural wealth and
being rich in natural resources such as coal, oil and having large amounts of fertile land for farming.
It had hug steel, coal and textile industries and the development of new technology such as cars and
electrical goods. America also had a growing population of around 123 million by 1923. As a result of
this, most American companies had access to the resources they needed in the USA and were able
to sell the goods they produced inside America.
Both of these factors largely contributed to the economic boom of the 1920s.
