Question

Which factors contributed to the economic prosperity of the 1920’s?

Answer 1

The economic prosperity of the 1920s was caused by a couple of major factors. First of all, more people were buying American goods, so booming manufacturing in the country. This was partially due to tariffs on European goods that made foreign import less profitable. In fact the manufacturing output increase by more than 60 percent. The other big factor leading to economic prosperity was technology. Advancement in the automobile industry, for example, lead to the prosperity of many more industries, such as the road construction, the oil and the steel industries. Then, improved innovations, like the radio, also contributed to economic prosperity through the new market items that it created. Improvements in travel technology contributed to efficiency and profit as well. Growing industrial consolidation is also an example of the economic prosperity in that it was the result of efforts to keep competition under control. All the economic well being, then increased standards of living in America and the prosperity of the stock market.

Answer 2

The economic boom contributed