Essay on Economic Expansions in 1920s

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During the 1920s, there was a rise in economy of the United States. The people of the United States and its territories enjoyed a prosperous life, as the economy grew 7 percent per year between 1922 and 1927. In this period, also referred as “Roaring Twenties”, there was high economic growth with increase in the living standards of Americans. According to the textbook, “Nation of Nations”, the reasons for the economic expansions in the nineteenth century were due to the boom in the industrial sector after the World War I and high consumer spending. Along with the improvements in the technological fields, construction and automobile industry, the sale of electricity doubled and consumption of fuel was doubled too. People spent lot of their…show more content…
No industries boom more than automobile manufacturing. Henry Ford helped to make the boom possible by making the automobile affordable to the Americans. Transportation was the main basis of economic growth. Construction industry stimulated other business like steel, lumber, concrete and insurance. It changed the nations eating habits. The employment rate was higher and living standard of the people increased. Lower Production costs increased sales and consumers spend more to purchase goods. In the book, “American Stories”, it states that American people enjoyed the highest standard of living of any nation on earth. In the 1920s, United States emerged as the worlds richest and most highly developed nations. The key factor for the industrial boom and economic development lay in the hands of technological advancements. Business, advertising and marketing, mass productions and other industrial developments were the main reasons of the development of the US economy. The economic boom peaked in 1922 until its end in1927. During this period, there was growth in consumer goods producing industries. Also, the industrial output nearly doubled and American workers became the highest paid in history. The automobile industrial boom was the nations largest in the 1920s and more people afforded cars for transportation. The electrical industry grew quickly and about two third of all Americans enjoyed electricity. Radio broadcasting and motion picture production also
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