The 1920s is the decade when America’s economy grew 42%. Mass production spread new consumer goods into every household. The modern auto and airline industries were born. The U.S. victory in World War I gave the country its first experience of being a global power.

What were the signs of a weakening or unsound economy in the 1920s? The signs were cuts in production, rise in unemployment, bank failures, and consumer borrowing. Personal debt weakening economy, etc.

The Great Depression was partly caused by the great inequality between the rich who accounted for a third of all wealth and the poor who had no savings at all. As the economy worsened many lost their fortunes, and some members of high society were forced to curb their extravagant lifestyles.

During the 1920s, the American economy experienced tremendous growth. Using mass production techniques, workers produced more goods in less time than ever before. The boom changed how Americans lived and helped create the modern consumer economy.

It began after the stock market crash of October 1929, which sent Wall Street into a panic and wiped out millions of investors. Over the next several years, consumer spending and investment dropped, causing steep declines in industrial output and employment as failing companies laid off workers.

The uneven distribution of wealth in the 1920’s existed on many levels. The excessive speculation in the late 1920’s kept the stock market artificially high, but eventually lead to large market crashes. These market crashes, combined with the maldistribution of wealth, caused the American economy to capsize.