Why the 1920s Were SO PROSPEROUS [APUSH Review]

The economic boom of the 1920s was largely due to America's increasing focus on mass production and consumption of consumer goods. This shift was driven by three main factors: government policy, new technologies, and manufacturing techniques.

Post-WWI, conservative politics led to policies favoring big businesses and the wealthy. Income tax rates for the richest Americans significantly dropped from 70% to 20-25% under President Warren G. Harding, based on the idea that wealth would 'trickle down' to the masses through investment and job creation. Additionally, Herbert Hoover's 'American Plan' aimed to weaken labor unions by incentivizing businesses to offer welfare programs, demonstrating significant government intervention despite claims of less government involvement.

Widespread electrification brought new consumer goods like vacuum cleaners, washing machines, and electric refrigerators. The advertising industry boomed, leveraging psychological studies to create ads that appealed to consumers' subconscious desires, shifting from promoting product features to creating perceived needs and aspirations.

Henry Ford's perfected assembly line revolutionized manufacturing, particularly in the automobile industry. By having stationary workers perform specific tasks on a moving line, efficiency increased dramatically, reducing costs and making cars affordable for the middle class. This application of Frederick Taylor's scientific management principles significantly impacted production.

The economic boom resulted in an improved standard of living for many Americans, with national income rising by 40% and purchasing power by 20%. However, this prosperity wasn't universal, with black American workers, immigrants, and farmers facing economic challenges. The widespread adoption of automobiles led to greater personal mobility, with Americans owning 80% of global cars by the decade's end. This, coupled with federal road subsidies, facilitated suburban growth and demographic shifts in cities.

The 1920s saw significant advancements in communication. Radio became a dominant technology, spreading a national mass culture and reducing regional isolation while standardizing language and accents. National networks exposed millions to common programs and also introduced diverse regional cultures, like jazz and blues from the Harlem Renaissance. The telephone's use also exploded, driven by AT&T's expansion. American cinema also played a crucial role in shaping mass culture, with movies becoming an affordable escape for working and middle-class Americans, solidifying Hollywood's status as a film production hub.