Causes of Economic Boom Flashcards
1
Q
What was the economic boom?
A
An economic state of growth with rising profits and full employment
2
Q
How much did automobile sales go up by between 1919 and 1929?
A
1919 - $9 million
1929 - $26 million
3
Q
What was the cycle of prosperity?
A
- Promotion of money within USA in 1920’s
* more sales = more production = more wages = more spending
4
Q
What consumerist goods boomed in the 1920’s?
A
Fridges, radios, telephones, canned fruit and veg, cookers, vacuums
5
Q
How did entertainment contribute to economic boom?
A
Cinema, jazz clubs, sports, speakeasies were more popular which generated more money
6
Q
How did USA’s role in WW1 benefit the economy?
A
USA made a lot of money from selling weapons and exporting food to European countries
7
Q
What was low taxation?
A
- Republican policy
* Believed people who saved money would spend it on American goods
