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The economy of the 1920s. What made it roar. The role of the government during this time
America had taken advantage of Germany's inability to pay reparations to Britain, France, and other Allies by coming up with the Dawes Plan where Wall Street invested in Germany, and Germany, in turn, repaid their war debts to Washington. This caused the economic prosperity of America to boom and by the second half of the decade, known as the 'Golden Twenties', America had become a tinderbox of affluence with its reputation as the most modern and wealthiest country in the world secured. Unfortunately, overconfidence and reckless speculation caused this bubble to burst by the end of the decade leading to the Great Depression. The roaring twenties, in other wards, was demarcated by unprecedented heights plunging into unprecedented lows.
Other economic policies that encouraged increased consumer spending and economic growth resulted from Harding's Emergency Tariff in 1921 and the Forney-McCumber Tariff of 1922 where reduced national debt, reduced taxes (particularly on the wealthy), and restricted immigration led to the 'boom' in the Coolidge years.
Mass production also spurred the country's economy making previous luxuries such as the automobile accessible to the 'common' American. Automobiles…[continue]
"The Political Social Climate U S 1920s Brought Roar 20 S How Characterize Economy 1920 S What Made Roar Role Government Play Time" (2011, December 21) Retrieved October 31, 2014, from http://www.paperdue.com/essay/the-political-social-climate-u-s-1920s-53430
"The Political Social Climate U S 1920s Brought Roar 20 S How Characterize Economy 1920 S What Made Roar Role Government Play Time" 21 December 2011. Web.31 October. 2014. <http://www.paperdue.com/essay/the-political-social-climate-u-s-1920s-53430>
"The Political Social Climate U S 1920s Brought Roar 20 S How Characterize Economy 1920 S What Made Roar Role Government Play Time", 21 December 2011, Accessed.31 October. 2014, http://www.paperdue.com/essay/the-political-social-climate-u-s-1920s-53430