History - The Causes of the Boom

Strong Confidence

• The USA was a confident country
• People moved to the USA because it was an attractive country
• The USA got more money from this

War

• America took over many European markets during WW1
• The USA was a main leader in industry. E.g. Chemicals

Advertising

• Companies were spending more money on advertising but making lots of money in return from sales
• The items that were being made had to be sold - companies advertised to sell

Policies

• Republican policies (US Presidents from 1920-1932 were Republican)
• Lower Taxes on income - people had more money to spend
• Imported goods had tariffs on them - people were encouraged to buy US goods
• Lassiez Faire meant finance and business were not interfered with

Technology

• Plastics like Bakolite were made in the 1920's
• There were new innoations like switch boards
• New technology meant companies were becoming more modern

Huge Mass Production

• Companies made thousands of products on a cheap, standardised scale
• Many Americans could now afford consumer goods

Extra Credit

• The growth of credit made it easier for people to buy things they wanted
• People could hire these products or pay by instalment

Resources

• America had wood, iron, coal and oil
• These helped America to be a main industrial leader by the 20th century