USA HISTORY

Detailed explanation-1: -In mid-1920 the American economy began to contract and the 1920-1921 depression lasted about a year, but a rapid recovery reestablished full-employment by 1923. As will be discussed below, the Federal Reserve System’s monetary policy was a major factor in initiating the 1920-1921 depression.

Detailed explanation-2: -Overproduction also became a problem with manufacturing companies. Even though families that couldn’t afford to pay for radios, cars, dishwashers and other expensive items upfront could now purchase them on credit, the amount of new products companies produced still exceeded the number that families were able to buy.

Detailed explanation-3: -A major factor in the economic prosperity of the 1920s would be the development and popularity of new technologies used both by industry and by consumers, especially automobiles, airplanes, radios, and appliances like washing machines and vacuum cleaners.

Detailed explanation-4: -Jazz music became wildly popular in the “Roaring Twenties, ” a decade that witnessed unprecedented economic growth and prosperity in the United States. Consumer culture flourished, with ever greater numbers of Americans purchasing automobiles, electrical appliances, and other widely available consumer products.