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How Did The Great Depression Affect The Economy In The 1920s

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During the 1920s, the American economy boomed. Ford was mass producing motors, people were buying more goods (mostly on hire) and there was even an increase in people investing in the stock market. The boom meant incomes rose and living standards improved for a lot of people, but, not all. Source 21 quotes Herbert Hoover saying ‘We are nearer today to the ideal of ending poverty and fear than ever before in any land’. The Republican government reduced income tax, meaning more money could be spent on goods; this coupled with low interest rates, meant people had more money to spend. Between 1920 and 1929, 15 million more automobiles were produced. By 1925, there was one ford car being manufactured every 10 seconds. In theory, more sales meant …show more content…

Jazz was associated with ‘American Flappers’, a woman who portrayed herself as one who wore short dresses, make up and smoked in public. Source 5 shows an explanation of how a flapper saw her life. To summarise the source, flappers had ‘nerve’. They didn’t need a man to provide money for them because they had their own. Also, more women were working by the 1920s, with an employment increase of 25%. However not every woman enjoyed the flappers way of life. Many were not even able to afford the new clothes. Some didn’t even get the time to be able to go and enjoy time like a flapper would. So, young rich women were able to benefit from life as a flapper as shown in source 6 referring to how a flapper dressed.. However, the elderly and many religious people went against these changes. People in poverty were unable to afford the …show more content…

Industries such as the coal industry, leather industry and the textile industry went into decline. 500,000 farmers went bankrupt. Around 40% were below the poverty line. Primary sector workers earned a third of the national average. In 1928, many coal workers went on strike, as their pay was not sufficient to enable them to live a decent life. The policy of the Republican Party meant there would be no government support for the poor and unemployed. Also, literacy tests were introduced in 1917. If an immigrant couldn’t pass the test, they would be refused entry. Around a million black workers lost their jobs in the 1920s, as a result they were put into low pay jobs. This was all because the population was growing fast. Source 29 from C K McDonald says that ‘The average wage in the north east was $881 per year. In the south east it was $365 per year. Millions of Americans continued to live in poverty’. This suggests a contrast between the standards of living with those in the north and south. People in south had half the wages of those compared to the north. The quote refers to the early 1920s, showing that not all had benefited from the boom. Also, the Laissez-faire bought lower taxes. There was a high introduction of new technology including audio devices. There were also more advertising and sales methods, especially billboards and radio adverts. Hire was in fashion and people were paying off goods in

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1. Source 2 was created during the Roaring 20s. The historical context of the time happened during consumerism. Throughout the 1920s as a results of mass production, new products on the market, and improved advertising techniques, the consumerism radically came.

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In the 1920s the American wealth exploded. It brought forward an increase of millionaires by 400% but this in turn buried the already poor Americans into a deeper hole of poverty. The difference in income between the wealthy class, the middle class and the poor class was absolutely massive. In total 60% of all Americans lived at or below the poverty line of $2,000.

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1930’s The Great Depression The Great Depression was the largest economic depression of the 20th century, and is commonly used today as a measure of how far the world’s economy can decline. The depression started in the U.S in 1929 with the Wall Street stock market crash (known as Black Tuesday). This eventually spread globally and affected the economy of many other nations throughout the 1930s. Canada was greatly affected by this as Canadian industrial production fell to 58%, the second lowest level after the United States.

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1. Thesis “It’s Christopher Martin’s view that society should in fact provide higher education freely to all. He reviews some purported differences between higher education and other goods that are commonly held to merit free provision for all, arguing that these are only apparent differences.” (615, Martin) 2. Support for Thesis “Governments across the world are citing increased global competitiveness and a slow economy as reasons for reducing funding to higher education.”

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Zinn argues that the economic growth in the 1920s wasn't nearly as good as it was portrayed and claims that any of the increase in money was for those at the top, leaving the middle and lower class oppressed. From the 1920s to even today, Zinn claims that the government and many capitalists have worked at keeping the working class oppressed to keep them on top. This meant that the government made sure to stop any spread of socialist views. Mainly, Zinn believes that the 1920s didn't bring prosperity like it claims. In reality, workers got slightly higher wages but in his theory it is so the workers would stop rebelling after being given just the right amount of money.

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The economy during the 1920’s seemed to be one of great wealth and prosperity, but in the very beginning of the decade, people experienced superficial prosperity. This is when people seem like they have wealth, but it is an illusion. The economic situation at the turn of the decade was grim. The Economic Recession of 1920-1921 lasted for about 18 months. The cause of the recession is widely believed to be a mixture of high federal debt after the war, labor unions rebelling, inflation rates jumping 20%, and a too tight economy (Murphy).

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Since early ages, mothers have always criticized the ways their daughters acted. In the 1920s criticisms were taken a step further by the flappers, who completely revolutionized the view on females. Flappers in the 1920s had an impact on women for the future. Who they were, what they wore, and what their morals were was how their impacts changed the future for all the females. “The term "flapper" originated in the 1920s and refers to the fashion trend for unfastened rubber galoshes that "flapped" when walking, an attribution reinforced by the image of the free-wheeling flapper in popular culture.”

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During the 1920s, life seemed like a utopia. Everything was perfect, and people did not think this time of prosperity would end. This time is also known as the “Jazz Age”, tokened by F. Scott Fitzgerald. This title describes the rebellious and calm nature of the public. These traits are shown in political, social, and cultural life, during this time.

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The economy in the United States over most of the 1920s was revolutionary for everyday men and women. It brought about a sense of economic prosperity that many had never seen before in their lifetimes. This sense of prosperity came about from several primary sources: America’s economy becoming business-centric, technological improvement, wage increases, and the creation of several new industries. Despite the common misconception that the economy was always “roaring” throughout the 1920s, the United States experienced a terrible post-war recession during the first two years of the decade (771, GML). It was not until the new industries of aviation, electronics, and automobiles arose that the economy bounced back and began to boom (771, GML).

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During the 1920s, the United States was going through a great change. The United States shifted from a producer orientated society into a consumerist society. Prior to the 19th century most producers only produced what was needed in quantities. Usually that meant what their village or farm could use. In the early 20th century, the US was in a time of rapid technology and communication advancements.

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During the 1920s, America’s economy was growing. New transportation was being made, new entertainment becoming popular, and even old successful products being replaced. As seen from this graph, the urban population began increasing dramatically while the rural population is seen decreasing. This is because farm prices started to fall in about 1920, all while people were losing their jobs because of new machines being made to save labor, like the tractor. These expensive products could also let people pay in installments so they could enjoy their product and pay over time.

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1920s Advertising During the 1920s, advertisement started to increase and expand. Many ideas and tactics were used to lure the attention of the consumers. After World War I, America started to grow with a stable and growing economy. This flourishment made many American's live out the 1920s in prosperity.

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In the 1920’s the United States had the largest economy in the world. That was soon to turn around and bite us. In this time in history, the richest one percent of the United States owned over one third of the countries assets. Because of the fact, that so much money was in such few hands the room for growth or expansion for those who did not have much money.

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Despite this, women were able to make a huge impact on America through social reforms. Many young women went against the beliefs of their parents. Prior to the Roaring Twenties, America was in a Victorian era. Women wore dresses that were floor-length, their hair was long and premarital sex was almost non-existent. During the 1920’s however, some women became what are known as “flappers”.

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There were major causes of the economic collapse of the 1920s, but there were many events that occurred before the economic collapse. One of the important events that occurred was the economic boom. There were revolutionary mass production techniques which allowed workers to produce more goods in a shorter amount of time, due to this the economy boomed. In the economic boom, there were a lot of things that played a role but the automobile industry made a significant modification. The known carmaker Henry Ford created the very popular and affordable Model T which simulated the production of steel, glass, rubber, asphalt, wood, gasoline, insurance, and road construction in other industries.

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