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What were the causes of the economic boom? Why did a boom happen in America during the s? America's assets and development The United States of America had an essential supply of natural resources such as timber, iron, coal, minerals, oil and land.
This enabled America to become a huge economic power at the beginning of the twentieth century. These resources were an important foundation for the economy. In order to help American people to purchase the new goods that were available, systems of hire-purchase and credit [Hire-purchase and credit: A way of borrowing money.
The ability to get the goods and pay back over a period of time. This meant that a person could buy something by paying for it on a monthly basis. As a result, the majority of Americans could afford expensive goods.
In order to encourage Americans to take advantage of the scheme, advertisments [Adverts: Use of posters etc to inform people about the new goods. During the same period, chain stores appeared for the first time, eg J P Penney.
Catalogue shopping also became fashionable as it was a convenient way of buying goods. Electricity developed slowly before the war but during the s the electricity industry experienced a huge boom [Boom: A period of prosperity in the economy. The economy was doing well and many people benefited. By the majority of houses in America had electricity and 70 per cent of them used it for lighting purposes.
As a result of the development of factories to produce consumer goods for the American people, the demand for electricity doubled. Electrical power was introduced in factories to drive machinery, and thus it became possible to introduce mass-production [Mass-production: Method of producing goods on a large scale and quickly.
Henry Ford and his son posing in the model F Ford car in The car industry is the best example of mass-production during the period.
Henry Ford was a pioneer with his idea of producing affordable cars for the people of America. He set about realising his dream by producing his early cars in small workshops. He had groups of men working for him and gradually the cars were built.
As he produced more and more cars, he could reduce his prices. Henry Ford was of the opinion that it was better to sell more cars for a small profit, as that meant employing more workers. By Americans owned 23 million cars. Therefore the entire economy was given a substantial boost due to the car industry.
You should learn the terms that explain the boom. Can you remember the eight things that caused to the boom? Give reasons why they contributed to the boom.This essay will investigate the long-term and short-term causes of the boom. The first part of this essay will discuss the long-term causes of the boom, which created, and environment in which the boom could take place.
The first of these long-term causes was that America had a ‘natural advantage’. United States' Boom of the 's In the USA in the s there was a period of extraordinary prosperity.
There was a feeling of richness and plenty - anything was possible. The s was also known as "The Jazz Age", or the "Roaring '20s". United States' Boom of the 's Essay Words | 8 Pages United States' Boom of the 's In the USA in the s there was a period of extraordinary prosperity.
In this essay, I will be discussing why America experienced a boom. I will be looking at many different reasons of the American boom: Natural recourses, The first world war, new technology, confidence, credit, mass marketing, mass production and policies of republican presidents. Why was there a boom in the USA in the s - Assignment Example.
On In Assignment Sample. The main reason for this essay is to show that an economic boom is not wholly reliant on one factor but on a number of factors which are all linked. However, an economic boom does not last forever, people will not always need new things and the boom. There had been no boom in the s (it was actually a period of low growth) After leaving the Gold Standard in , the UK economy recovered relatively well.
The UK also experienced a long period of deflation in the s and s.