Roaring Twenties

The "Roaring Twenties" was an era when the American Economy prospered tremendously. American industry had expanded during the Great War, making weapons, uniforms, equipment etc. This expansion continued after the war, helped by America's massive reserves of raw materials and by high tariffs. Tariffs made foreign goods dearer, so American goods were bought. Some industries were also given subsidies, which increased their profits. There was economic expansion. The greatest boom was in consumer goods, i.…

…debt. After the stock market crashed in the months that followed, forty billion dollars was lost. The Great Depression had started. Essentially what happened in the 1920's was that there was an oversupply of goods. It was not that the surplus products of industrialized society were not wanted, but rather that those whose needs were not satiated could not afford more, whereas the wealthy were satiated by spending only a small portion of their income.