THE ROARING 20S 1920 1929
AMERICAN ECONOMY IN THE 1920S
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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promoting the expansion of government’s role in the arts and sciences.
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limiting government regulation and supporting business.
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promoting the visibility of non-profit organizations and charities.
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aiding congressional plans to help American farmers.
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Detailed explanation-1: -Laissez-faire attitude (hands off) towards government involvement in the economy. Republican presidents of the 1920s allowed businesses to do what they wanted with little government interference. Led to collapse of Stock Market which then led nto the Great Depression.
Detailed explanation-2: -Throughout the 1920s, each year saw a rise in every leading economic indicator (signs that the economy is thriving). Income levels rose (workers, for example, made 26 percent more in 1929 than they had in 1919), as did business growth, new construction, and stock market trading.
Detailed explanation-3: -The 1920s is the decade when America’s economy grew 42%. 1 Mass production spread new consumer goods into every household. The modern auto and airline industries were born. The U.S. victory in World War I gave the country its first experience of being a global power.
Detailed explanation-4: -Real GNP growth during the 1920s was relatively rapid, 4.2 percent a year from 1920 to 1929 according to the most widely used estimates. (Historical Statistics of the United States, or HSUS, 1976) Real GNP per capita grew 2.7 percent per year between 1920 and 1929.