The Roaring Twenties (1920 - 1929)
After 2 decades of the progressive era, Americans longed for the country to return to normal. From 1920 to 1932 presidents Harding, Coolidge and Hoover were elected. These conservative Republican presidents believed in ideas such as the "Laissez Faire", and "rugged individualism". These philosophies revolved around the idea of leaving businesses and citizens alone. Little control and involvement was put into the economy during this time period. These strategies also left citizens with no governmental support. These presidents, although leading the country into a time period of wealth and prosperity, brought the nation into the most severe economic downfall of its existence.
With no Governmental control, businesses did as they pleased, creating large economic expansion. Special loan plans were created that allowed Americans to spend more money than they had. This is why the era is often marked as a time of "False Prosperity". Because of this advertisement tool, it was common for citizens to live the rich lifestyle, even if they couldn't pay for it. New products were being purchased by all of the economic classes, not just the very rich. This caused a rapid increase in industries, and therefor the economy. The decade was also full of dancing, parties, and fun, because people believed they could afford it. The 1920s appeared to be a time of economic growth, when in reality, the economy became more unstable with every passing day. Finally, in 1929, the bad decisions of the government and businesses caught up with the economy. The Stock Market crashed, and within the next 10 years, almost 10,000 banks failed in the nation. This devastating downfall was a result of no government involvement with the economy.
With no Governmental control, businesses did as they pleased, creating large economic expansion. Special loan plans were created that allowed Americans to spend more money than they had. This is why the era is often marked as a time of "False Prosperity". Because of this advertisement tool, it was common for citizens to live the rich lifestyle, even if they couldn't pay for it. New products were being purchased by all of the economic classes, not just the very rich. This caused a rapid increase in industries, and therefor the economy. The decade was also full of dancing, parties, and fun, because people believed they could afford it. The 1920s appeared to be a time of economic growth, when in reality, the economy became more unstable with every passing day. Finally, in 1929, the bad decisions of the government and businesses caught up with the economy. The Stock Market crashed, and within the next 10 years, almost 10,000 banks failed in the nation. This devastating downfall was a result of no government involvement with the economy.