Boom of the American Economy in 1920's
The US economy experienced a boom from 1923 for a multitude of reasons, none of these reasons are solely responsible for the "boom", however as I hope to explain they did influence the economy in order to maintain the boom. The plethora of interconnecting factors include natural resource, the impact of the World War One (1914-1918), Republican polices, new technologies coupled with methods of finance and advertising. The most poignant aspect of the boom in 1923-29 was that it was a sustained boom for 6 years compared to the natural boom and bust cycle experienced every year.
The United States' wealth of natural resources meant that it was a
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The increase and the shear scale of US markets meant that there was another continuous source of income for the US economy. Britain and France were almost dependant on American help following the war, but this meant that their markets almost dissolved and so America seized the opportunity and took control of their markets as well. America were in control of markets in Asia and Latin America, this led to an influx of trade and wealth where all the money was coming into America. The loans from the allies was generally spent on American goods, so not only were they loaning money to collect interest, but the money was coming straight back into their economy to industries such as ammunitions, thus they potential for tax cuts and huge investments in new industries such as ceramics, chemicals and plastics. The war had affected America's infrastructure, and as a result the improvements in communication, transport and the workforce were still in place in order for the American economy to boom throughout 1923-29.
After the war, a sense of isolationism coupled with businesses wanting less intervention meant that a Republican Government was in power during the boom. Republican policies favoured the growth of big business, the promotion of US goods, and cheap US