The Roaring Twenties and the Road to Depression

The 1920s in America were a decade of stark contradictions: unprecedented prosperity alongside deep inequality, dazzling cultural innovation alongside reactionary nativism, and an economic boom built on foundations so fragile that the entire edifice collapsed in October 1929. Understanding both the achievements and the structural weaknesses of the 1920s economy is essential for evaluating the causes and severity of the Great Depression.

Key Definition: The Roaring Twenties refers to the 1920s, a period characterised by economic prosperity, mass consumerism, cultural innovation, and social change, followed by the catastrophic Wall Street Crash of 1929.

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The Economic Boom

The American economy grew by approximately 42 per cent during the 1920s. Industrial production nearly doubled. By 1929, the United States produced 42 per cent of the world's manufactured goods — more than all of Europe combined.

Causes of the Boom