Question

What caused the Roaring Twenties to come to a grinding halt? Analyze the events of the 1920s that contributed to the demise of the American economy, using economic, social and political variables.

Answer 1

I already started the essay and this is what I have so far, can anyone add things onto this? Thank you!

The 1920's were dubbed the “roaring 20's” because the economy and social life were literally roaring in the major cities of the 1920's. Credit was invented, so items more expensive could now be easily afforded. More families owned cars, radios, refrigerators, etc. sending the economy soaring. The 1920's were a decade of economic prosperity, the unemployment rate was at an all time low of 3%, and the productivity rate was soaring due to new technological advancements such as refrigerators, razors, automobiles, etc. Globally, the United States was extending it's power across the world and establishing itself firmly in the global market. However, the country was unconsciously setting itself up for economic doom. Consumers, bolstered by the new availability of loans and slower payments from companies, were making purchases that cost many times their regular salary, resulting in a doubling of installment debt throughout the country. Factories were producing more than could actually be afforded by their low-cost employees, and due to an originally successful high tariff, the United States began a global tariff war in which it quickly became the center. Extremely high productivity rates, severe political mistakes, income inequality and nation-wide loans were the leading causes to the demise of the American economy. The stock market also played a huge role in the wealthiness of families. That's why when the stock market crashed, it left many families with no money. It was all placed in stocks, with hopes of getting richer. There is even controversy over whether or not the crash of the stock market in 1929 was responsible for the start of the Great depression. A deflation in asset and commodity prices, dramatic drops in demand and credit, and disruption of trade, ultimately resulting in widespread unemployment and hence poverty in turn, causing the extreme halt of the roaring twenties.