The Boom and its Impact

Central Idea

  • The US economy boomed in the decade after the First World War, leading to significant growth and prosperity for many Americans.

The 'Boom' Created a Consumer Society

  1. Increased Spending

    • People had more money to spend on luxury goods like hoovers and washing machines.

    • Hire-purchase made expensive products like cars more affordable.

  2. Easy Credit

    • Availability of credit encouraged people to buy expensive goods, improving their standard of living.

  3. Advertising Influence

    • Rapid increase in advertising persuaded people to spend more.

    • Advertisements utilized new technologies like radio and film.

Prosperity in Companies and Stock Market

  1. Shares and Stock Market

    • Companies prospered, and the value of shares kept increasing.

    • Speculation on shares led to many individuals becoming wealthy.

Industries Thrived During the 'Boom'

  1. New Industries

    • Prosperity in electricity, telephone, and chemical industries.

    • Growth in the motor industry, particularly due to Henry Ford's mass production techniques.

    • Ford's assembly line system increased car production efficiency and lowered costs.

    • Boost in steel, glass, rubber, and petrol industries due to the car industry's success.

    • Construction industry profited from the demand for good roads and suburban housing development.

Conclusion

  • The 'Boom' in the US economy during the 1920s had a significant impact on creating a consumer society, boosting companies, and driving growth in various industries.