1920s Economy Essay

616 Words3 Pages

America began to prosper in the 1920’s because of industrial production being up, wages were rising, and the unemployment rates were low. After World War I America was the world’s leading economic power, because of all the technological changes happening in the industrial companies. Technological changes were happening in many industries, for example Henry Ford began to make his cars on an assembly line, which enabled him to sale more cars and cheaper products. America also had a lot of natural resources, oil being one of them, which is essential in cars. Oil was also very abundant so it sold for cheap prices. Henry Ford was very important in the economic boom also because he brought new methods in other industries. Credit …show more content…

The Republican party also contributed to the economic growth. They lowered taxes and made tariffs higher.Lower taxes allowed people to have more money in their pockets to spend on other things in the future.The increasing price of tariffs caused more citizens to buy more American goods therefore also benefitting the Economy. The 1920’s was considered to be a time the government just let things operate as they pleased. Many believe that the mind set they had let to the growth …show more content…

In World War I we provided for the Europeans after the war because they needed food because their sources were scarce. We began to benefit from that because of the food production.We also provided them with weapons which later benefitted us. They needed is and their need of us later made us richer, because we provided the, with all their needs. I agree that without the new automobile industry, the prosperity would scarcely be possible because it allowed changes in other industries that lead to the boom. Henry Ford’s assembly line influenced other industries to try new methods that lead to mass production. The more products they were able to produce the better income they began to have. Then other industries would find methods that helped with the production of their product. I strongly that without having that happen it wouldn 't have happened as it did. The overall result is the automobile industry was the lighter fluid to the fire that caused the economic boom. The boom lead America that would be beneficial for a life time. In my opinion Henry Ford is the father of the economic boom. Although not all were able to benefit from it, America may not be the same if it never

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