Causes: 1920's USA BOOM

The 1920s was a period of great change for USA. It was affected in many different aspects, some changes where positive and some where negative. The trust that someone can obtain a good and then pay it, credit, and the opportunity people had to pay something through installment payments over time, hire purchase, were reasons for economic growth. 

When we talk about economy we can talk about the “buy now, pay later” motto which was a new thing for people. This allowed them to buy a product in the moment but to pay later; this was a “revolutionary” thing for economy. Low income families had more access to new manufactured goods. The motor industry was another growing industry which credit and hire purchase helped, since it made it possible for people to buy cars, in 1929 about 4.8 million cars were made, that is one thousand times more than in 1900. This helped make the stock market popular in all USA. Buying shares of companies and then selling them was a quick and efficient way to get rich in a shorter period of time than normal. People kept buying shares which made prices rise and economy kept booming. Since economy was doing so well, banks were trusted by people and the other way around so loans were really common, people would ask for loans and buy shares, then sell them for a higher price and would both pay back the bank and profit from this. 

Although credit and hire purchase was a big reason for the economic boom, it wasn’t the only one. There were many others like Laissez-faire which was an attitude that republicans had, they believed the government should interfere as little as possible in people’s everyday lives, Tariffs which made imported food more expensive making people buy national products and Low Taxation, republicans believed that if people kept their money they would invest it on American goods. Their were many things industries produced that helped economy, but the radio broadcasting industry grew with the economy. Once the “Buy now, pay later” motto was being used, the demand for radios grew in big scale. Consumer good were mass-produced in great scale which made them cheaper and more accesible for people to buy them. All these factors, and many more helped make USA’s economy grow making it one of the work leaders in many sectors. After WWI the economy grew because of industries being strong and exporting things to those in war, making them wealthy. 

In the end, USA’s economy was and still is one of the leaders. The boom was because of many factors, little and big ones. Even though after this there was a crash, that didn’t stop USA. The 1920’s were of great growth and development for USA and it’s economy.