The social economy of the Roaring Twenties

The Roaring Twenties are traditionally thought of as a period of economic prosperity due to the influx of many new consumer goods into the market. Initially, the North American economy spent much time transitioning from a wartime economy to a peacetime economy. Soon after, explosive growth began. During the roaring decade, the United States grew into the world's largest economic power thanks to the mass production of industry and the prevailing consumerist culture in society, while Europe's economic take-off did not begin until 1924.

Although great progress is being made in social, economic and technological development, the situation of African Americans, new immigrant groups, farmers and parts of the proletariat is no different from the past. In fact, there are still millions of people living below the $2,000 household income poverty line.

In addition, the explosive growth of the economy also paved the way for the Great Depression that swept the world in the 1930s.

The impact of demobilization on the economy

After the end of World War I, a large number of American and Canadian soldiers returned to North America with cash in their pockets, and new goods in the market prompted the money to be eventually consumed. . Although the United States also faced a brief economic recession after the war, with the demobilization of American and Canadian soldiers, the factory labor force was replenished, and the completion of the military-to-civilian reconstruction of a large number of factories, the economies of both countries quickly recovered.

The economic policies of the Communist Party of China and the Party

The series of economic policies formulated by the then-ruling Communist Party of China and the Party are considered to have had an important impact on economic growth. The government pursued laissez faire economics (laissez faire economics) without administrative interference, creating conditions for a major outbreak. The Fordney-McCumber Tariff Act passed in 1922 effectively protected the prosperity of domestic industry and commerce by preventing the entry of foreign capital. Treasury Secretary Andrew Mellon (1921-1932) reduced the surtax from 50% to 20%, helping those business consortiums to consolidate their monopoly in their fields.

New Products and New Technology

In the 1920s, the unprecedented development of mass production made technological products increasingly cheaper. In fact, many products that became commonplace in this era existed before the war, but could not yet be promoted among the people. The automobile, movie, radio, and daily chemical industries flourished in an all-round way, among which the automobile industry should be particularly noted. Before the war, cars were still an extreme luxury product; by the 1920s, cheap, mass-produced cars had spread across North America. By 1927, Henry Ford had sold 15 million Model T cars. In Canada, the total number of cars in 1918 was only 300,000; ten years later, this number had soared to 1.9 million. Automobiles have had a wide impact on economic and social development. The automobile industry has rapidly grown into a major industry, and peripheral industries such as gas stations, motels, and the oil industry have also been stimulated.

During the Roaring Age, radio became the first broadcast mass media in history. People could now afford radios, and programs became increasingly entertainment-oriented. Due to its wide audience, radio has gradually become an important medium for product promotion. During this "Golden Age of Broadcasting," radio programming was as extensive as today's television sets. And because there was no self-censorship system that is widely introduced today, editors at that time could do whatever they wanted to attract audiences. This was also the beginning of the emergence of violent and criminal content in movies and other popular culture in the future. It was not until the establishment of the Federal Broadcasting Commission in 1927 that this absolute freedom was restrained, and a new era of broadcasting under control came.

Small advertisements inserted before movie screenings further expanded the already growing mass market. In the early 20th century, the film industry that only consisted of silent short films (silent films) gradually changed, paving the way for the "Golden Age of Film" in the 1930s and 1940s. Since the price is much lower than other entertainment consumption, watching movies is also recognized by the blue-collar class.

Expansion of infrastructure

The rapid changes in science and technology have promoted the enthusiastic demand for new infrastructure, and government-led construction projects account for the vast majority. The great development of the automobile industry has led to the expansion and renovation of roads, and the total mileage of trunk roads and toll highways continues to set new records. The emergence of a new class with high spending power has increased the demand for consumer goods, including cars.

The power facilities that lagged behind during the war developed rapidly in the 1920s, and the scale of the power grid continued to expand. Most industries began to use electricity to replace primary energy. New power plants were built rapidly, and electricity generation across the United States tripled.

At the same time, telephone lines finally crossed the North American continent, indoor sewer pipes began to be laid in ordinary homes, and modern sewage treatment systems were initially established.

Since most of the construction costs of these infrastructures are borne by the government, local governments with the bright idea of ??"benefiting from the future" have fallen into debt difficulties after investing a lot of money. And this became a major problem during the Great Depression. On the other hand, in contrast to the generous investments of local governments, central governments in both the United States and Canada spent the decade paying off war debts and phasing out certain taxes introduced during the war.

Speculation

Sufficient private deposits began to flow into speculative funds, especially on the New York Stock Exchange.

A large amount of speculation and hype created an economic bubble and created the conditions for the great crash in 2029. In addition, between 1925 and the following year, another investment bubble burst called the "Florida Real Estate Boom" that was different from the one in 29.

Population surge and urbanization

Another important trend in the 1920s was urbanization. With rapidly growing industry, expanding road and rail transportation systems, and the emergence of skyscrapers, for the first time in the history of both the United States and Canada, the number of urban residents exceeded the number of rural residents. The finance and insurance industry has tripled, and the share of the service industry in total production has increased significantly. The earliest generation of today's huge white-collar class was born in the city, and a large number of women began to enter offices to engage in secretarial and other work. By the late 1920s, 20% of Canadian workers were women. Cities near the American Midwest and Great Lakes region, including Chicago and Toronto, grew most rapidly during this period due to their proximity to vast agricultural fields. The opening of the Panama Canal in 1914 also began to benefit the West Coast of the United States.