American prosperity in 1920Paper Rating: Word Count: 914 Approx Pages: 4
During the 1920's the rise of economic expansion created booming business profits and increased the standard of living for most Americans. From 1922 to 1929 the national income in the United States went from $60.7 billion annually to $87.2 billion. That was a 40 percent increase in those eight years. With the help of labor saving machines in nearly every factory and on every farm, the producers were able to turn out more goods at a faster rate and without spending as much money.
American prosperity in the 1920's was largely due to the growth of the automobile industry. Although it played a very large part in the rising of the economy, there were other contributors that made America more prosperous as well. The automobile industry was, however, where the consumption of one product was more evident in helping the economy than any other. The annual automobile production rose from two million cars in 1920 to 5.5 million in 1929. By the late 1920's, for every five people that lived in America, there was a car for them to ride in. Ironically, this meant that every person in America could be in a car somewhere all at the same time. There were two main reasons that caused the rise of popularity of cars. The firs