Why was there a 1920's economic boom?

Why was there a 1920's economic boom?

1. Mass-marketing

   • Wider range of goods
   • More techniques to entice people
   • More people who knew about the products the more they bought
   • World-wide sales through trade

2. First World War

   • Lent money to Europe
   • Taken over overseas markets
   • Countries exhausted after war
   • Sold goods to Europe while the men were fighting

3. New Technology

   • Modernised and devloped industries
   • Huge demands
   • Electricity provided a cheaper, more efficient power source. 1915- 15% by 1917 - 70% had electricity
   • People had more advanced products

4. Natural resources

   • Great Industrial power
   • Land minerals
   • Development in Industries

5. Credit

   • Borrow money- People could buy stuff even if they didn't have the money
   • Customers pay in instalments

6. Confidence

   • More risks taken
   • Buy shares and take loans
   • Believed America would stay strong and powerful

7. Mass production

   • Goods produced cheaper on a larger scale
   • Cars became so cheap that average Americans could buy
   • New Consumer Products

8. Policies of presidents

   • Protectionism
   • Laissez Faire - Don't interfere with anything
   • Lowered Taxes