Causes of the 'boom'
I can explain why there was an economic boom in the 1920s.
Causes of the 'boom'
I can explain why there was an economic boom in the 1920s.
Lesson details
Key learning points
- The USA experienced an economic boom in the 1920s.
- Mass production, government policies and the effects of WWI helped make businesses more profitable.
- Demand for consumer goods like cars and radios increased.
- Advertising and hire pruchase schemes helped create a consumer society.
- The boom was accelerated by a cycle of prosperity which benefitted both businesses and consumers.
Common misconception
Students assume that only businesses benefitted from the boom.
Consumers benefitted from the boom through increased employment, rising wages, and the ease of buying goods which improved standards of life.
Keywords
GDP - GDP refers to the total value of goods and services produced by a country in a year
Shares - some companies sell shares in order to raise money; people who own shares in a company receive part of the company’s profits
Laissez-faire - laissez-faire beliefs suggest that the government should not interfere with the economy
Tariff - a tariff is a government tax on imports into a country
Consumer goods - goods which people use for their own benefit, such as cars or clothes, are known as consumer goods
Licence
This content is © Oak National Academy Limited (2024), licensed on Open Government Licence version 3.0 except where otherwise stated. See Oak's terms & conditions (Collection 2).
Video
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Starter quiz
6 Questions
Exit quiz
6 Questions
total value of goods and services produced by a country
where the government avoids interfering with the economy
allow owners to take a portion of a company's profits
a government tax on imports into a country