Status of the U.S. Economy During the 1920s
The 1920s was a period in American History when the economy improved by 42%. Every home-based got new user merchandise as an outcome of quantity manufacturing. As a result, contemporary automobile and aviation enterprises were created. The United States’ achievement during World War I gave some hope as it managed to be a superpower (Doenecke, 2020). Returning soldiers from Europe introduced a new viewpoint, enthusiasm, and talents to people. Because of easy access to financing, everyone becomes an entrepreneur, which concealed vulnerability contributed to the Great Recession. The 1920s were a time of social unrest in civilization.
The Economic Trend During the 1920s
Since World War I decimated almost all of Europe, the U.S. generated over half of the said globe’s production. The value of new development nearly doubled, rising from $6.7 billion to $10.1 billion (Doenecke, 2020). Besides the financial downturn of 1920-21, where unemployment increased to 11.7% according to a few estimates, joblessness throughout the 1920s hardly surged above the normal rate of at least 4%. The GDP increased from $6,460 to $8,016 for an individual. Nevertheless, this affluence was not equitably spread. In 1922, the wealthiest 1% of the people collected 13.4% of overall revenue and also gained 14.5% by 1929 (Doenecke, 2020).
The United States made the transition from a conventional to a free market system (Heuer, 2019). Farming’s share in the GDP decreased from 18% to 12.4%. Taxation per acre amplified by 40%, but farming revenue decreased by 21%. Simultaneously, technological breakthroughs boosted consumer goods production in the United States.
Cultural and Spending Behavior by Young Adults
Spending money on recreational activities such as films, dancing, and games increased by 300% there in the 1920s. Communism changed saloons into cabarets, which derived their title from the usage of credentials to obtain entry (Doenecke, 2020). Many of the nightclubs were linked to organizing crimes, and Chicago’s Al Capone made billions serving consumers while new leisure activities became a site of cultural conflict.
Individuals that were well respected by the middle class, in particular the adolescent group, participated in activities that were affiliated with the working and foreign classes (Heuer, 2019). Dance clubs, roller coasters, and other entertainment venues were increasingly frequented by single young workers in cities (Doenecke, 2020). Older conceptions of moral order were undermined by the open mixing of sexes, occupations, and sometimes even cultural groupings, resulting in the setting of boundaries and rules to improve the legitimacy of such new nightclubs.
During the period between 1920 and 1929, the country’s overall wealth was much more than double, ushering many Americans through an opulent but unknown “consumer culture.” The Americans were exposed to one type of dancing and the same kind of music (Doenecke, 2020). By having similar things to do, the Americans were not comfortable, and this would bring more fights than revelries. Nevertheless, for young adults, the 1920s period was a roaring decade.
If the 1920s’ ethos was one of liberation, jazz provided the music. The jazz phase had been a sociocultural era and phenomenon in the U.S. through the 1920s that saw the development of new harmonious and bopping genres (Doenecke, 2020). It rapidly spread to History’s middle-class white, thanks to young adults who shared contemporary melodic skills through ancient customs. Professionals began to improve their talents in tap dancing as well as other modern techniques as dance clubs around the United States organized competitions wherein dancers devised and battled using new tactics.
How the Circumstances from the 1920s Influenced the Economic Crash
The common opinion that National Alcohol Prohibition was a failure is based on a factually shaky foundation. The victorious effort to impose National Restriction was indeed the culmination of a generation sobriety crusade. The prohibitionists concluded that a countrywide alcohol ban was by far the most effective of the several measures explored that far (Doenecke, 2020). During the 1920s and 1930s, dramatic overconsumption seemed to demonstrate the failure of alternate hard liquor control strategies (Heuer, 2019). The 18th amendment strict ban, on the other hand, was a more draconian measure than most Americans imagined (Doenecke, 2020).
Nonetheless, till the Economic Crisis changed voters’ interests, National Restriction was successful in both cutting usage and keeping public support. A repeal was triggered by this alteration in context rather than by the innovation’s qualities. Amid 1929 and 1933, in the U.S., where the impacts of the recession were most severe, manufacturing output decreased by over 47%, growth slowed by 30%, and inflation increased to over 20% (Doenecke, 2020). For instance, during the Global Depression of 2007–09, the country’s second-largest financial crisis, GDP fell by 4.3%, and jobless hovered above 10%.
Prohibition also influenced the shutting of businesses, especially the manufacturing industries, in the United States. Before 1920, the U.S. had 1300 distilleries manufacturing comprehensive beer; a decade later, they were not there. During this period, the number of factories was reduced by 85%, as well as the majority of those that survived produced nothing more than industrial liquor (Doenecke, 2020). Before Nationwide Prohibition, close beer was made using a 1/10 of barley, a 1/12 of grains and hop, and now a thirtieth of cornmeal needed to create replete beer.
References
Doenecke, J. (2020). The United States’ entry into the First World War: The role of British and German diplomacy. First World War Studies, 11(1), 92-94. Web.
Heuer, C. (2019). ‘Everyman his own historian’: Historical thinking and life history narration. Rethinking History, 24(1), 56-68. Web.