The American economy between 1920 and 1929 is best described by which of the following statements?Fear of a recession persuaded most Americans to cut back on their spending. The standard of...
The American economy between 1920 and 1929 is best described by which of the following statements?
- Fear of a recession persuaded most Americans to cut back on their spending.
- The standard of living of most American workers improved.
- The gross national product declined slightly.
- The new consumer goods, such as automobiles, were available only to the wealthy.
- Prices rose dramatically as there was a shortage of consumer goods.
The 1920s economy expanded rapidly, as did jobs in manufacturing, advertising, and construction. The 1920s were the first time we saw an American middle class of any real size. Many workers were paid a decent wage, unlike the Gilded Age sweatshop employees, and for the first time could dream of home ownership. Workers in Henry Ford's auto plants made $5 a day, even though they were doing relatively simple factory work.
Today we think of vacations as something like a birthright, but the 1920s were the first time you saw large numbers of average Americans talk about what to do with their "time off". The tourism and leisure industries expanded along with everything else.
With all I've just described to you, hopefully you can choose which answer fits that description best from the list you've provided. One should stand out above the rest.
The Roaring Twenties was a time when the United States became one of the wealthiest countries in the world. It was a time when everybody seemed to have a reasonably well paid job and spare cash to spend. It was the introduction of the installment purchase, whereby you put a deposit on an item that you wanted and paid installments on that item with interest. This allowed middle-class consumers to afford large purchases. Also a major economic impact of this spending was that labor was required to make the items that people wanted. The meant more people had jobs and disposable income.
Two classes of people did not have the same luck – sharecroppers and African-Americans. Sharecroppers often lost their land due to the falling prices as there was an overproduction in crops. African-Americans were forced to do menial labor at low wages.