Question

The 1920s was a decade of prosperity & poverty at the same time which resulted in the Great Depression. You should discuss what factors & issues accounted for the veneer of prosperity, why didn’t that prosperity extend to all, and how this economy collapsed and began the Great Depression.

Answer 1

The decade of the 1920s in Western society and Western culture is commonly known as the "roaring twenties". As it was the period of economic prosperity with distinctive cultural edge in the U.S. and Western Europe. In France it was known by different name i.e. "années folles" (crazy years) emphasizing era's scial, cultural dynamism. This period witnessed large scale development and use of automobiles, radio , telephone etc leading to rapid industrial and economic growth resulting in increase in consumer demand.

There were various aspects of the Roaring Twenties. It was only confined to some of the Americans and not all so it was unable to extend to all the economies. After the war in Europe ended demand for American foodstuffs abruptly declined leading to fall in prices of commodities. Farmers went into debt before 1920 in order to buy more land and machinery. The 1920s were a time of rebellion. Women got the right to vote and since many of them were able to work outside the home during the war they sought to rights. The main cause of roaring twenties was the disposable income levels after first World war and Americans felt like they could relax. So the increase in disposable income of the individual lead to increase in demand as well as supply of goods and services. There were various innovations take place like frozen food, television as well as first car was also invented by Henry Ford. Liquor and alcohol was made illegal and banned.

This lead US stock market change with rapid expansion reaching at its peak. By the time it has reached it's peak production had already declined and unemployment had risen, people spend more money than they had leading to take loans. Therefore all these lead to Great Depression from crash of US stock market resulting in loss of life and prosperity.