Reasons for economic boom in the 1920s

Reasons for economic boom in the 1920s

There was a huge economic boom in the USA during the 1920s, with income and living standards rising, giving the period the name the "Roaring Twenties".

1. The rise of advertising brought more spending and became its own business, expanding to radio and movie ads.
2. Low unemployment, inflation and interest rates meant that people were more willing to spend.
3. Everyday items such as washing machines, TVs and refrigerators were now affordable for many people - bringing a consumer boom.
4. The Republican government reduced income tax and left people with more money to spend, contributing to prosperity.