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saw5 [17]
3 years ago
9

Why did the economy prosperity of the 1920s come to an end in 1929

History
1 answer:
igor_vitrenko [27]3 years ago
5 0
<span>The period from 1920 to 1929 is known as the Roaring Twenties. Those years were exciting, fascinating, and entertaining for the U.S. population, whose sons had just fought and won World War I (1914–18), the war that had promised to end all wars. Everyone was enthralled with the new gasoline automobiles that Henry Ford (1863–1947) had made affordable. Women had gained the right to vote, and some had acquired new electric machines that made life easier, such as washing machines and vacuum cleaners. Every day more Americans brought a radio into their homes; the radio brought music and news that thrilled listeners. The new moving pictures captivated audiences in palace-like movie houses. Businesses and manufacturing industries continuously expanded. The prices of their stocks steadily increased through the 1920s, going on a wild ride upward between 1926 and October of 1929. Stock prices went far beyond realistic values and had little basis in the health of the companies. These skyrocketing stock prices signaled trouble for the U.S. economy.</span>
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Old industries such as Coal and Cotton did terribly in the Boom as people became interested in the new products such as clothes made from artificial material(polyester). Coal was an old source of power, in the 1920s oil and electricity became greatly used.

Agriculture was also poor many farmers left the farmland to find work in the city. As new people emerged, new demands also appeared. Instead of fresh fruits and vegetables, Americans preferred cereals and bread which lead to the decrease of demands in fruits.

In the 1920s, Argentina and Canada began to supply the world crops which lead to the drops of demands from USA directly. Later in the year Prohibition(anything related to alcoholic drinks was made illegal) was introduced which caused an instant drop to the demands of barley(barley was used for making alcoholic drinks such as beer)
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