The American economy throughout the decade of the 1920s experienced significant growth and prosperity. This was enabled by technological advancements, rapid industrialization, as well as increased spending by consumers. The good fortune of the Roaring 20s eventually ran out as the economy entered an alarming recession with stock prices continuing to rise, which eventually gave way to an extreme economic downturn.
The United States quickly developed into a more consumer oriented society in the 1920s era. This was because of numerous factors like increased wages and the introduction of new materialistic items into American culture. The growth of media and advertising also played a role in shaping American society and promoting mass consumerism. People were encouraged by the surrounding culture to purchase new products like automobiles, radios, and household appliances, which became symbols for social status and modernity. The consumer society had a sizable impact on American culture as the desire to possess
…show more content…
While the economy grew, the benefits of this growth were concentrated in the hands of wealthy individuals instead of the general population. The majority of Americans, particularly farmers and workers, experienced standstill wages alongside increasing debt. This imbalance caused a situation where the majority of the population did not have enough purchasing power to sustain the levels of consumer spending required for long-term economic stability. Another factor that contributed to the economic demise was over speculation in the stock market. Stock prices grew to unprecedented heights, much higher than the actual value of the company. Yet, the stock market was operating like an inflated bubble, and it burst on what is now called Black Tuesday and is officially when the Great Depression began in