How far does the application of new technologies explain the economic boom of the 1920s?

New technologies as well as mass production were central in causing the economic boom of the 1920s. Conveyor belt and moving assembly lines allowed mass production to take place following the introduction of electricity. Motor vehicle industry - one car was made every 90 minutes. Assembly lines in factories such as that of Henry Ford’s ensured efficient and quicker production which increased output. Due to high output levels using new technology and mass production, prices for items such as the car decreased - more consumers were able to purchase the car. Allowed output to increase considerably, thus causing a fall in prices and making goods more affordable for consumers. These lower prices meant that goods were more affordable thus stimulating demand for these goods and increasing sales. Also follow on businesses such as services were developed; garages, motels, petrol stations and used car salerooms.
Similarly, new business methods such as advertising also stimulated demand for goods and were significant in causing the economic boom of the 1920s. Companies needed to expand demand for their products so they began to hire psychologists to design campaigns and target specific groups. They began to emphasise slogans, brand names, celebrity endorsements and consumer aspirations.By 1929, companies were spending $3 billion annually on advertising. In addition, larger corporations could dominate the industry using methods such as operating cartels to fix prices. Although this was technically illegal, the government turned a blind eye. They could, as in the case of petrol companies control the entire industrial process. This involved exploitation of raw materials, manufacture of the product, its distribution to wholesale and retail outlets and its sale to the consumer. Furthermore, holding companies could be created by some large organisations like US Steel that could dictate output and price levels throughout the industry. Therefore, new business methods such as advertising were central in explaining the economic boom as they created and stimulated demand for products and thus consumers would be more inclined to make purchases which increased turnover for companies and allowed them to use profits to further expand business to overall benefit the economy. Cartels prevented fair competition and thus larger businesses were able to grow and expand more without having to compete with other businesses.
Likewise, the Republican policies put forward by the government benefitted these businesses and were thus a central factor in explaining the economic boom in the 1920s. Tariffs - Fordney McCumber act 1927, these were so high that domestic manufacturers were guranteed a market, so American goods sell. Tax reductions in 1924, 1926 and 1928, handed out by Andrew Mellon wiorth $3.5 billion. Fewer regulations - ignoring business practices to prevent fair competition. Law concerning child labour were ignored in the south and many operated cartels.
Equally, new banking practices were an important factor in explaining the economic boom of the 1920s. Easy credit - paying a deposit upfront and then paying the rest in monthly instalments. Goods could be acquired before being paid for but if payments were missed, goods could be repossessed. In, 1929, almost $7 billion worth of goods were sold on credit. This included 75% of cars and 50% of major household appliances.New banking practices were significant in causing the boom as easy credit encouraged more people to purchase goods as they were able to make payments later and still own the good such as electrical appliances like the refrigerator and cars, so this stimulated demand whilst allowing companies to make more sales and therefore grow in size.