How Did Prohibition Affect The Economy Of The 1920s

The 1920s, also known as the Roaring Twenties, was a time period in the United States that is defined as an “era of prosperity, fast cars, jazz, speakeasies, and wild youth” (Dictionary.com “Roaring Twenties”). This time occurred shortly after the end of the First World War and was known to be one of the most boisterous decades in American history. American businesses were flourishing which led to America’s economy quickly recovering from war, and this recovery tuned into an economic boom. Economic prosperity and rapid industrial growth helped to turn America into the wealthiest country of the time. The 1920s was a time of innovation due to political changes, social changes, and technological advances.

Politics in the 1920s was a time full

Prohibition was in full effect due to the eighteenth amendment being added to the Constitution of the United States. This new amendment took effect at the beginning of the decade on January 16, 1920. Prohibition made “the manufacture, sale, or transportation of intoxicating liquours” illegal, but not the “consumption, private possession, or production for one’s own consumption” (George and Richards). While prohibition was a conservative idea, the new amendment sparked many innovative ideas from many Americans who did not agree with it. Examples of these new ideas included things such as speakeasies and bootlegging. These concepts demonstrated the creativity that went into developing ways to work around the laws of prohibition as well as the conservative restraints placed upon citizens from the government. A rise of organized crime surged when this amendment went into effect, and many people began to think of new ways to profit from the new laws. Ideas such as businesses that sold illegal alcohol quickly became popular, although they were illegal. Throughout the decade law enforcement also had to think of innovative strategies to stop illegal activities from occurring, and did everything they could to bring down the crooks of prohibition (Library of Congress Prints). The conservative eighteenth amendment was eventually repealed by

The American economy for the majority of the twenties was very prosperous due to a surge in consumerism and because of the new inventions of the time. Consumerism contributed to Americans purchasing more goods, and during the decade Americans began to move “from the traditional avoidance of debt to the concept of buying goods on credit installments” (American-historama). The increase in wealth across America made Americans, as well as soldiers returning home from war, desire a lifestyle that reflected their new prosperity. They sought after a lifestyle that included time for leisure and pleasure. During the twenties electricity began to become more common all across America. Electricity lead to many innovative inventions which had never possible before in history. Inventions of the 1920s included: “washing machines, radios, vacuum cleaners, refrigerators, dishwashers, sunglasses, traffic signals, electric razors, frozen foods, and televisions” (American-historama). The industries of transportation and communication experienced some of the most exponential growth of the decade due to technology. In the business of transportation, the Model T Automobile as well as the idea of the assembly line was invented by Henry Ford to help Americans travel around more effortlessly. Henry Ford improved infrastructure and created many jobs in massive amounts