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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Electricity powered many appliances.
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The automobile provided less isolation for the rural family.
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The economy was considered weak and lacked growth.
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Service clubs like the Rotary, Kiwanis, and Lions Club developed.
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Detailed explanation-1: -The economic boom was faltering. It was too heavily based on cars and consumer goods. Overproduction and underconsumption were affecting most sectors of the economy. Old industries were in decline.
Detailed explanation-2: -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-3: -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.
Detailed explanation-4: -People were spending money with their higher wages. What were the basic economic weakness of the American economy in the late 1920s?-Uneven distribution of wealth: the highest paid 5% of workers got 70% of the country’s income. The remaining majority got the rest.