Which nation was the world's economic leader after World War 1?

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After the chaos and destruction of World War One, it was America who emerged as the world's strongest economy. Beginning around 1921, America experienced an economic boom in which the country's gross national product (GNP) increased by approximately 4.2 percent per year and industrial production grew on an unprecedented scale....

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After the chaos and destruction of World War One, it was America who emerged as the world's strongest economy. Beginning around 1921, America experienced an economic boom in which the country's gross national product (GNP) increased by approximately 4.2 percent per year and industrial production grew on an unprecedented scale. Part of the reason for America's boom can be explained by the policies of the Republican presidents, Harding and Coolidge, who introduced a policy called Isolationism, in which high taxes are put on foreign imports to prevent competition and to encourage people to buy American-made products. Thanks to new technology, lots of exciting products quickly hit the market, like the radio, vacuum cleaner, refrigerator and the car. These products were also made affordable by the introduction of hire purchase agreements which meant that people could buy on credit and repay the cost over a set period of time.

A population decline and decreased rates of immigration in the early 1920s also kept the boom going: unemployment rates dropped to 4 percent and wages rose in the majority of sectors.    

 

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