Boom Period in the 1920 America

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Boom Period in the 1920 America

By the end of the First World War America was regarded as the most powerful and richest country in the world. In the 1920´s the United States' economy was 'booming' with success and increasing prosperity, in which a great deal of Americans, though certainly not all, shared. This period was also known as the 'roaring twenties´. With a plentiful supply of raw materials (e.g. oil and coal) and the policy of isolation and containment in place, America soon became even more powerful and wealthier.

America had great regional diversity, with each region contributing something different to the economy. In the South there was vast areas of farmland, cattle ranches and
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Cheap labour from an influx in immigrants helped the idea of mass production and the increase in factories and new industry.

It was not only the car industry that expanded during the 1920s. With the help of the motor car industry, other industries started to grow, including the steel, rubber, glass, leather and oil industry. The construction industry grew due to the increase in traffic on the roads. Other consumer goods used the idea of mass production, causing a 'boom' in the economy; radio sets, telephones, refrigerators, vacuum cleaners, washing machines and ovens were all being rapidly manufactured to serve the needs of the public. These new goods were 'attractive' to the Americans, resulting in sales rocketing. The ability to buy these goods, was greatly helped by the introduction of credit facilities - hire purchase. This allowed people who could not afford the whole cost of the product to obtain it by paying for it in instalments over a certain period of time. Mail order also increased the market for goods into the more remote areas of America. Also, throughout the 1920s there was a great feeling of consumer confidence among the American people. Consumer spending was rocketing, and the stock-market was 'booming' as share prices increased. Advertisements on the radio, in magazines,
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