Economic Boom of the 1920s Essay

single those who admit little or zero about frugals and the very aboveboard did not know in the socio-economic class 1925 that economic hard times fit good times as economic booms and slumps are cyclical. Still, there were various reasons why even seasoned economists may flummox speculated that economic prosperity of the 1920s would continue forevermore. Machinery, manufacturing plants and the process of standardized mass action were the main reasons for the excitement of the 1920s (Schultz and Tischler).In fact, the economy of the United States continued to uprise until 1929. The First World War had promote industry to expand. Labor shortages coupled with the make to increase production had stimulated the tuition of efficient modes of production. Taylorism or scientific forethought to streamline processes of production in regulate to increase production capacity had been introduced some the country. With new machinery and management tools, worker productivity was ra ised. This rise in productivity increase wages, thereby increasing employment.Americans were also promote to use credit to fuel consumption at the time. The installment plan was an knowledgeability of the 1920s. What is more, the government supported businesses by height tariffs on foreign goods, reducing individualized income tax and corporate tax, repealing taxes on profits, and aspect into unfair trade practices as a means to encourage businesses to expand (Schultz and Tischler). The consumer psychology in 1925 was another reason why many may have heavy that economic slumps are a function of the past.Americans had the radio at the time, in rundown to a growing motion depression industry to keep their mindsets confirming. They also had electrical appliances at home and a growing automobile industry making them entrust their lives had changed forevermore in a positive direction (Schultz and Tischler). Then again, all those who know about the economic boom bring out c ycle were aware in 1925 that a slump is sure to follow a boom.Works CitedSchultz, Stanley K. , and William P. Tischler. Civil War to the Present. American History 102. 1999. 1 Mar 2009.