How Far Did Ww1 Explain The Boom In The American Economy During The 1920s

PART B: To what extent do the profits made during the First World War explain the boom in the American Economy during the 1920s? (20)

There were several factors that led to the boom in the American Economy during the 1920s. Some historians would argue that the profits made from WWI were the most beneficial in improving the American economy, however there were also many other features that influenced the boom in the American economy, such as republican policies, agriculture and natural resources, as well as technological advances. All of these factors ultimately led to the economic boom, but which was the most significant?

WW1 had a strong impact on the American Economy. The effects that the war had on countries such as Britain and France were not as threatening to the economy in America – some historians would argue that the war was beneficial for the American economy. This was due to the fact that the war left America in a strong position, and this was due to the fact that America joined the war late, hence the country did not suffer the damage in the same way that Britain, France and Germany did. Instead, the

America had access to raw materials that it needed for making consumer goods, steel, coal, leather and wood, without having to import those materials from abroad. The ability to access these materials greatly improved the state of the staple industries, and furthermore benefitted the issues of employment, which may have been a threat. Additionally, the economy worked well with these resources by using them efficiently and avoiding wasting them, which really helped the economy grow. Similar to the technological advances, agriculture was just a resource, but if it weren’t for the government’s lack of involvement, the companies wouldn’t have used these resources so efficiently, but since they were in charge of how to use the materials, the economy improved