How would you describe the economy of the 1920s in the United States?
The economy of the 1920s in the United States was fantastic for almost all of the decade. The decade is known by several nicknames including the Roaring 20s, the Magic Decade, and the Jazz Age. All of these names reflect the strong, robust economy we had for most of the decade.
During the 1920s, businesses were doing very well. Many businesses grew, and lots of new products were made. Many people were also working. With many people working, more money was being spent on new products. Products like washing machines, frozen foods, and irons were developed. Many people bought cars. This allowed for our economy to continue growing. Many invested in the stock market that seemed to keep on rising. People went to sporting events, listened to jazz, and watched movies. Prosperity existed in many places.
The government encouraged business growth and development. Laissez-faire policies were the norm, and business was given much freedom. The economy really prospered.
However, there were some warning signs that were being ignored. By the end of the 1920s, we were in a situation economically most Americans never saw coming.