Introduction
The interwar period marks the most interesting era in the United States of America. In the 1930s, the United States experienced a severe depression in the economy, which led to multiple changes within the government. As a result, economists and historians have given much attention to this decade, overlooking the previous decade. This is unfortunate because, during this period, the United States experienced immense economic growth, marking the beginning of the modern decade and dramatic economic development. Therefore, it is possible that the 1920s contributed immensely to the development of the United States to its modern stature.
Gross National Product
To understand the decade, it is important to begin by looking at the country’s gross domestic product (GDP) during the period. GDP is the detailed measure of aggregate economic activity. The American economic growth was relatively rapid and was estimated to be 4.2 percent between 1920 and 1929 (Smiley). The country’s per capita income grew at a rate of 2.7 percent per year within the same duration (Smiley). During the nineteenth and twentieth centuries, the growth rate represented rapid growth according to the standards used then.
The Adoption of Automobile
In the 1920s, there was also a rapid adoption of automobiles, which helped in reducing the need for passenger rail travel. Although before the 1920s, there was a rise in the suburbs’ development, this growth was tied to passenger rail accessibility, which was only found within cities (Smiley). The development of cars changed this due to their flexibility, leading to the spread of suburbs. In addition, the rise in the demand for cars and trucks contributed to the development of technologies that aided the construction of all-weather roads to facilitate people’s movement.
Expansion of the Electricity Network
During the decade of prosperity, there was a rapid expansion of electricity networks. This network expansion contributed to developing new consumer appliances, such as heating and lighting appliances, for both homes and businesses. Moreover, the power supply network was important in introducing radio and radio stations. The introduction of commercial radio networks was also important in breaking the isolation of rural areas evident in the previous decades. In addition, due to the availability of electricity, there was an introduction of local and long-distance telephone communications.
The Decline in Agricultural Production in Europe
At the beginning of World War I, European agricultural production declined. The fall in the production of agricultural produce in Europe brought unprecedented prosperity to the American economy. It led to the demand for American products in the European market; consequently, there was a rise in prices of farm products and incomes for American farmers. While responding to the rise in the demand for farm products, the American farmer increased their production by moving onto marginal lands (Smiley). Through this, the American farmers could raise funds to buy machinery such as tractors, plows, mowers, and threshers to increase their output. However, the demand for agricultural produce also increased farmland prices, especially the marginal lands, and the debt of the American farmers increased substantially.
Conclusion
The 1920 decade is one of the major contributors to the development of modern America. During this decade, the country experienced immense economic growth, marking the beginning of the modern decade and dramatic economic development. The American economic growth was relatively rapid and was estimated to be 4.2 percent between 1920 and 1929. The country’s per capita income also grew at a rate of 2.7 percent per year within the same duration. During the period, there was also a rapid adoption of automobiles which helped reduce the need for passenger rail travel leading to the expansion of suburbs.
Work Cited
Smiley, Gene. “The U.S. Economy in the 1920s.” EHnet, Web.