There was an economic boom in the 1920s for 5 main reasons. Firstly the growing strength of American Industry meant that the USA was a leading producer of many raw materials. This was partly due to the second main cause of the boom, which was World War 1. This had helped the American Industry to grow, as during World War 1 new markets had opened up to America. Also, after World War 1, America took over as a leading producer as many European industries had suffered greatly because of the war. Government policies meant that businesses could thrive without government...
war, with interest. The First World War also meant that other countries were not strong enough to keep up with America's industry. Republican policies were also contributory factors to America's industrial strength, as one of the policies was to leave businesses alone. This meant that all industries thrived. New developments led to mass production, which allowed the average American to buy new items that were manufactured. Finally, this led to people believing that America was destined to be the strongest country in the world, encouraging them to buy more items and shares, which created the economic boom.