AMERICAN IMPERIALISM 1890 1919
TREATY OF VERSAILLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The U.S. government received the most money from Germany to help pay for war expenses.
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European nations were buying crops at high prices so U.S. farmers were making money.
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Since the war did not take place on U.S. soil, the country did not have the expense of rebuilding.
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European citizens were investing in the U.S. stock market since European markets were not doing well.
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Detailed explanation-1: -The main reasons for America’s economic boom in the 1920s were technological progress which led to the mass production of goods, the electrification of America, new mass marketing techniques, the availability of cheap credit and increased employment which, in turn, created a huge amount of consumers.
Detailed explanation-2: -First, European markets were closely connected to American markets. As European countries tried to recover from the war, they depended on American financing. That’s how in 1929, when the American economy started its crash, it brought Europe down with it.
Detailed explanation-3: -Some scholars believe that a boom in housing construction in the mid-1920s led to an excess supply of housing and a particularly large drop in construction in 1928 and 1929. By the fall of 1929, U.S. stock prices had reached levels that could not be justified by reasonable anticipations of future earnings.
Detailed explanation-4: -Other industrial countries experienced difficulties. For example, one outcome of the Great Depression was a collapse of world trade. The sharp decline was brought on by a round of tax increases on imported goods (tariffs) instituted by any nations turning inward trying to bolster their own sagging economies.