Economic Boom of the 1920s Essay

Only those who know little or secret code about economics and the very naive did not know in the year 1925 that economic hard generation follow good times as economic skags and slumps are cyclical. Still, there were various reasons why charge seasoned economists may have speculated that economic prosperity of the mid-twenties would compensate forevermore. Machinery, manufacturing plants and the process of standardized mass production were the main reasons for the excitement of the 1920s (Schultz and Tischler).In fact, the economy of the United States continued to grow until 1929. The First domain of a function War had encouraged industry to expand. Labor shortages coupled with the need to enlarge production had stimulated the development of efficient modes of production. Taylorism or scientific commission to streamline processes of production in order to increase production contentedness had been introduced around the country. With new machinery and management tools, worker productivity was raised. This rise in productivity increased wages, thereby increasing consumption.Americans were also encouraged to map credit to fuel consumption at the time. The installment plan was an change of the 1920s. What is more, the government supported businesses by raising tariffs on foreign goods, trim personal income tax and corporate tax, repealing taxes on profits, and looking into unfair make do practices as a means to encourage businesses to expand (Schultz and Tischler). The consumer psychology in 1925 was another reason why many may have conclude that economic slumps are a thing of the past.Americans had the radio at the time, in addition to a growing motion picture industry to get their mindsets confident(p). They also had electric appliances at home and a growing simple machine industry making them believe their lives had changed forevermore in a positive direction (Schultz and Tischler). Then again, all those who know about the economic boom bust cyc le were aware in 1925 that a slump is for sure to follow a boom.Works CitedSchultz, Stanley K. , and William P. Tischler. Civil War to the Present. American tarradiddle 102. 1999. 1 Mar 2009.