Give two reasons for the economic boom of the USA in the 1920s.

One reason for the economic boom of the 1920s was the increase in mass production. This was caused by the creation of the assembly line by Henry Ford, who used it to make his Model T Ford cars. This new system meant that several hundreds of men could perform one simple act in a factory, rather than having a small amount of well-trained mechanics. This meant an increase in employment and resulted in more products being made. This increase in the number of products caused consumer goods to be generally cheaper, thus stimulating the consumer boom.Another reason for the boom was Republican Policies. Presidents Warren Harding, Calvin Coolidge and Herbert Hoover were all pro-business and so tailored their policies to suit the economy. They increased tariffs on foreign goods to encourage 'Buying American', which helped the profits of American businesses. They also lowered taxes which allowed customers to spend more money on these American products.

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