Why the 1920s Were SO PROSPEROUS [APUSH Review]

Welcome to the 1920s: Economic Growth and Innovations

Causes of Economic Growth

• The U.S. economy shifted towards mass production and consumption of consumer goods, marking a significant change in economic focus.

• Government policy played a crucial role; post-WWI conservative politics favored big businesses, leading to reduced tax burdens for the wealthy from nearly 70% to about 20-25%.

• The idea behind lower taxes was that wealth would trickle down as wealthy Americans invested in businesses, creating jobs for the working class.

• Herbert Hoover's "American Plan" aimed to weaken labor unions by encouraging businesses to provide welfare programs like health insurance and pensions.

• Despite claims of less government intervention, significant federal policies supported business interests during this prosperous decade.

Technological Innovations

• Widespread electrification led to new consumer goods such as vacuum cleaners, washing machines, and electric refrigerators becoming available.

• The advertising industry evolved significantly; influenced by Freud's psychological studies, ads began targeting consumers' subconscious desires rather than just product features.

• Henry Ford perfected the assembly line technique, enhancing manufacturing efficiency while making automobiles affordable for middle-class Americans.

• Ford’s methods were influenced by Frederick Taylor's principles of scientific management, which emphasized efficiency in production processes.

Effects of Economic Boom

• Many Americans saw an improved standard of living; national income rose nearly 40%, with average workers’ purchasing power increasing by about 20%.

• However, not all groups benefited equally; Black American workers and immigrants experienced less prosperity compared to their white counterparts.

• Farmers faced challenges due to wartime overproduction leading to debt as they struggled with surplus products without sufficient buyers.

• Greater personal mobility emerged from widespread automobile adoption; by the end of the decade, Americans owned approximately 80% of all automobiles worldwide.

The Impact of Economic Prosperity in the 1920s

Changes in Car Affordability and Urban Migration

• The price of cars significantly decreased during the 1920s, making them accessible to middle-class and working-class Americans, which had a profound impact on society.

• The Federal Road Aid Act of 1916 led to the construction of thousands of miles of paved roads, facilitating easier travel by car.

• This accessibility prompted wealthy and middle-class Americans to move from urban areas into suburbs, altering the demographic landscape of cities.

Advancements in Communication Technology

• The decade saw improvements in communication systems, notably through the rise of radio as a widespread technology that contributed to mass culture.

• Although invented in the 19th century, telephone usage surged in the 1920s due to AT&T's rapid expansion of telephone lines both nationally and internationally.

Rise of Mass Culture Through Media

• By the end of the 1920s, millions owned radios at home due to mass production and increased electricity access; national networks like NBC and CBS emerged.

• Radio programs helped reduce regional isolation while also increasing awareness of distinct regional cultures; for instance, Jack L. Cooper introduced audiences to black jazz and blues artists during the Harlem Renaissance.

• Cinema also played a crucial role in spreading mass culture; by late 1920s, nearly three-fourths of Americans attended movies weekly.