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America in the 1920s - Essay Example

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America in the 1920s

Realities of the wartime, accompanied by the scale restrictions of democracy and introduction to violence of tens millions of people, have rendered huge influence on public psychology, morals, valuable priorities. At the same time, the war has also lay the foundation of rather significant industrial growth in the majority of the states of the West that cannot but affect a standard of living of the population.
To the full all this was showed in the history of the United States of America. The war and post-war economic boom became the reason of essential social changes in the country, which have turned into partial reconsideration of former, in many respects Puritan, value system. So let us consider 1920s American economic and social developments, including the economic boom (1922-1929), impact of the automobile, introduction of new electrical products and household appliances, improvement of the standard of living and working conditions, and growth of the stock market.
Growth of the population and the well-being of the population in the beginning of the twenties century have led to a long growth in economy. In 1920s was carried out railway construction, people spent a lot of money for purchase of the new capital 'consumer blessings', and as a result building sector, automobile and other industries experienced an extraordinary rise. It is possible to say that the most important factor of the amazing economic boom (1922-1929) in the USA is the occurrence of new industries. In particular, phenomenal rise was observed in automotive industry. There has arisen the huge demand for production of allied industries, especially steel, rubber, glass and oil products. In the road building, which has received additional stimulus of development, there were also many new workplaces. In the same period in high gear developed manufacture of radio, other electrical products and household appliances. Installment trading became the powerful factor of growth of internal consumption. Despite of the existence of variety of laws, called to limit the creation of large corporations, monopolization of economic life occurred very quickly, especially in sphere of public service.
As it usually happens during the periods of boom, in the second half 1920s there was a big growth of share prices. And there was a ground for it: manufacture grew, incomes of the population raised, unemployment decreased. "Americans invested in companies by buying shares. They bought shares 'on the margin', paying back loans when share prices went up1". When this speculative boom has reached its limit, it has begun great fall of stocks. Since this moment all financial system of the USA and together with it the financial system of other world has started crackling.
It is assumed that the main reason of the Great depression is the stock market crash in 1929. However the process actually has been set by the irresponsible profit making of brokers during the economic boom, which has begun in 1924. During this period the country is unprecedented prospered, however then there was a dangerous skew in incomes. Calvin Coolidge, the president of the USA in 1924-1929, has declared the non-interference of the state in business. The tax on income has been sharply lowered.
Illusion of economic growth has led to occurrence of a financial pyramid: the share price were artificially overestimated, Americans counted up dividends and bought new shares, ...Show more


1920s of the twenties century are rightfully considered as the period of cardinal turn in social history of the countries of the Western Europe and Northern America. That time have been set the ground of modern social structure of these countries, and also designated the major social and cultural parameters of their further social development…
Author : bmurray
America in the 1920s essay example
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