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Objective 4.7- The Twenties Economy

Added Jan 19, 2016 •

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I was living with I would be  following World War 1 while the rest of all was facing an imminent economic do United States was beginning to experience when the most prosperous economic periods in its history between the years 1920 and 1929 United States accumulated forty percent about the total world wealth between the years 1920 and 1929 the average annual income Rose by nearly 30% in the United States and between the 1920 and 1929 the US national income level Rose by nearly 25% there was a recipe for this economic boom during the 1920s new technologies led to increased wages increase productivity and met more products for consumers lower income tax rates meant morning for American consumers to spend easily available credit allowed consumers to spend beyond their means and higher tariffs on Imports led to increase profits for American firms the booming 1920s economy was spurred by a massive wave of American consumerism in the 1920s America was flush with income and Americans were eager to spin they mostly but newly innovated Goods that made life easier as electricity spread throughout the country consumers bought a home electrical appliances Electric add Raiders washers and stoves made life easier for housewives and gave them arrogance more Leisure Time mass production techniques made these Goods more readily available and drove down electric appliances were common in urban and suburban homes but most rural areas still lacked electricity none-the-less the electrical Appliance became mainstream in the 1920s the flood of new Goods in the market and consumerism fed the advertising industry the advertising industry itself made huge profits from selling ads and Consulting add increase consumer demand for goods and inform buyers of new products as a fuel to people's desire for youth wealth and beauty and also played on the fears as convinced tires at luxuries where necessities and brand names became familiar slogans like say it with flowers and reach for Lucky instead of a sweet influenced by her spending US economy continued to grow the 1920s undoubtedly became the decade of the car the automobile changed America forever one reason why the car became so couch was Henry Ford and his assembly line assembly line in all of his Ford car plants Nationwide make it at faster and cheaper to produce carts this technology spread to other Industries as well making all good cheaper and more abundant throughout the entire economy also change the American landscape forever more roads became paved interstate highways and routes were Bill and New Towns of Ben says popped up along those routes think rape Springs in the movie Cars gas stations and motels popped up along highways even new homes were built with garages carports and driveways to accommodate the families new car to understand the effectiveness of the assembly line just take a look at these numbers October 31st 1925 for plants produced 9001 turn the 9 new Ford Model T that translates to one for every 10 seconds of the working day with this kind of efficiency Ford was able to lower the price of a Model T from $850 in the year 1908 to $300 by the year 1926 the popularity of the car created the urban sprawl highways cause cities to expand outward and the suburbs flourished and drove into work getting away from overcrowded cities real families game of the the highway also helps connect markets cross country and travel became independent you no longer had to rely on mass transit to get where you wanted to go as more and more cars are being a builder in please be on the floors the car boom let's have boom and Steele rubber glass and other oil Industries all products use create cars cars exploded neck Michigan Flint Michigan and Detroit fun facts from the outside it seemed that the economy was booming like never before and everyone was prospering but in reality the United States was only experiencing a superficial Prosperity there was several signs that the times perhaps not as prosperous as they actually appear and they're actually deep-rooted problems in the American economy the first warning sign was massive consumerism on credit to keep is consumerism Americans borrowed money to spend despite increased wages most consumers Step Beyond their means to fuel consumerism installment plans advertised a vine pay later approached by a small portion down and pay back loans overtime at a very low interest rate this kind of credit attracted consumers because they can enjoy their goods now without having to pay for it all in full right away however fundamentally this was a major weakness in the economy because most consumers spent without regard to how to pay back in the future many American consumers built up a huge crippling amount of debt with no possible means to pay it off another warning sign was a series of Economic and pause corporations merge and carried massive profits other Industries declined Key Energy such as iron and railroad struggle to survive and took losses this live for playoff large numbers of workers Farmers also struggled with the post-war surplus of crops and cheap crop prices during the war Farmers loans in order to produce more products good Market from the work clothes they had huge surpluses and we're not able to pay back their loans Additionally the decadence of the rich Massacre income gap essentially as the rich play the poor starved as the top Runners other income go quickly poor Americans saw their income growing very slowly this made it difficult to continue the spending spree of the twenties while the continue to spend and have the ability to spend it was not able to carry the economy the way it would if all Americans were spending money looking back on the Roaring Twenties Rebecca prosperity in decadence but underneath the surface there were major problems in the United States economy that would lay the foundation for the greatest economic downturn in our nation's history

Uploaded by Mark Lovein.

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Objective 4.7- The Twenties Economy

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