Americans were looking for a return to the way of life before World War 1 as Warren G. Harding promised in the election of 1920. ´The 1920s, known as the Roaring 20s was a rough time for the United States. It was a increasing boom in the economy, social trends, and different categories of styles in terms of clothing, food, dancing, etc. It was a era of success, wealth, affluence, and etc. The period of success was a result of the change from the war environment of WWI to a peaceful environment where many had access to better jobs. \ Industrial growth, consumer spending, and a strong market led up to a rise in the stock and went to a overvaluing period of the companies. New technologies started to occur like the automobile, household
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Advertisements played a big role in the boom, people became pressured and convinced to buy the popular items that were selling rapidly, if everyone had it, everyone wanted it. For example, Henry Ford used a slogan ‘Every American home should have one” to try and advise people to buy his cars. It was a period of desperation. People assumed this could go on forever, but eventually this had to be paid off. The Stock Market increased, and obviously so did the US Industry. Prices of shares continued to increase. This was because believed the boom would last for a long time. People who invests in stocks brought shares in the hope of making easy money. Some people borrowed money to buy shares, hoping they’ll make enough money soon to pay the full price later. Little did they know that doing this was called a gamble and they could lose all of their money. They were no controls on the buying and selling of shares, or on the companies. Shares could be bought anywhere, for example even on street corners and many people put their life savings into the stock market, that’s how big it was. Some companies did not actually produce anything, but just bought and sold shares. In fact some companies did not exist at all. They used their name to get investors just to take the people money. Basically, as long as there was confidence, the boom would last. As long as people believed that the prices of shares would rise, they would keep investing. Governments of President Harding didn’t make an effort to get involve or remove the buying and selling of shares. People in new industries saw themselves better, and the wages of workers in the 1920s did not raise, it decreased. Increase in money found its way to a lower amount of people. The gap between the rich and poor grew. There weren’t that much people who could go on buying.
Advertisements played a big role in the boom, people became pressured and convinced to buy the popular items that were selling rapidly, if everyone had it, everyone wanted it. For example, Henry Ford used a slogan ‘Every American home should have one” to try and advise people to buy his cars. It was a period of desperation. People assumed this could go on forever, but eventually this had to be paid off. The Stock Market increased, and obviously so did the US Industry. Prices of shares continued to increase. This was because believed the boom would last for a long time. People who invests in stocks brought shares in the hope of making easy money. Some people borrowed money to buy shares, hoping they’ll make enough money soon to pay the full price later. Little did they know that doing this was called a gamble and they could lose all of their money. They were no controls on the buying and selling of shares, or on the companies. Shares could be bought anywhere, for example even on street corners and many people put their life savings into the stock market, that’s how big it was. Some companies did not actually produce anything, but just bought and sold shares. In fact some companies did not exist at all. They used their name to get investors just to take the people money. Basically, as long as there was confidence, the boom would last. As long as people believed that the prices of shares would rise, they would keep investing. Governments of President Harding didn’t make an effort to get involve or remove the buying and selling of shares. People in new industries saw themselves better, and the wages of workers in the 1920s did not raise, it decreased. Increase in money found its way to a lower amount of people. The gap between the rich and poor grew. There weren’t that much people who could go on buying.