... lending money to Europeans in astronomical amounts. In this way, in the 4-6 years surrounding WWI, the USA went from a borrowing to a creditor nation. Later, this rapid outflux of money so carelessly was seen as a major cause of declining economy domestically. When the Twenties rolled around, Americans ... and less expensively. This led to higher amounts of production. At some points, the American consumer could not buy the goods as fast as they were produced. Since the economy was in such good shape, many Americans could afford to purchase refrigerators, washing machines, and ... carrie...

• Word Count: 2446
• Approx Pages: 10
• Grade Level: High School

... produce more goods faster and cheaper. This led to higher amounts of production. At some points, the American consumer could not buy the goods as fast as they were produced. However, the high amounts of production did not mean farmers would become wealthy. The supply increased, however the demand was ... a fabulous decade outlined by a booming economy, and big business finding new ways to become bigger. New stores were popping up all over the nation and stores that were already around grew into chains, which stretched the length of the United States. However, all of these outstanding acc...

• Word Count: 2710
• Approx Pages: 11
• Grade Level: High School

... decreased demand for European exports. The United States also had an edge in emerging industries. The American economy was more dynamic, embracing the fast growing industries such as automobile production. Europeans were heavily committed to older, declining industries, and it was difficult for them to shift to ... factor of instability brought about by the war was the reversal of the change of capital flows. Before WWI, the United States was a debtor nation. We owed vast sums of money to Europe, especially Britain. During the war Europe was not only forced to liquidate their U.S. inve...

• Word Count: 1758
• Approx Pages: 7

... reduce inventories. A similar story held for makers of household appliances. Perhaps more than any other part of the economy, agriculture suffered throughout the 1920s. During World War I, international demand for food crops such as wheat and corn soared, causing prices to rise. Farmers planted more crops and took out loans to buy land and equipment. After the war, demand for farm ... people then had trouble paying off their growing debts. Faced with debt, consumers cut back on spending. Consumers also spent less because their incomes were not rising fast enough. During the 1920s, nearl...

• Word Count: 586
• Approx Pages: 2