America's economic prosperity of the 1920s cannot be explained by a single argument. There is no doubt that the spectacular growth of the automobile industry has been a major contributor to America's economic boom, but it is by no means the only one. Other factors such as technological advances, new business methods and government policies, and different historical interpretations must also be taken into consideration in order to decide which have contributed the most to the growth of the American economy over the years. 1920s. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay Arguably one of the largest industries of the era, automobile manufacturing became a significant source of wealth in post-World War I America. Perhaps the most dominant company of this period, the Ford Motor Company revolutionized American industrial production. Ford's "Model T", for example, was relatively inexpensive and was the first car that most working-class people could afford. The company mass-produced its cars using assembly lines and specialization, which meant that supply was quick and efficient. By the end of the 1920s, there were 23 million cars on American roads. Likewise, the company employed more than 60,000 workers, and by 1929 the automobile industry as a whole employed 7% of all American workers and paid 9% of all wages. This made the overall population richer, thereby boosting the American economy. The industry also created many social benefits, as people could easily travel long distances, encouraging consumer spending at restaurants, movie theaters, stores, etc. According to Robert and Helen Lynd, "leisure options readily available, even to the working class, have increased many-fold." » Published in 1929, this work demonstrates the social or “recreational” benefits of car ownership, in addition to its economic benefits. It can be argued, however, that this increase in consumer spending, which can to some extent be attributed to the growth of the automobile industry, has encouraged consumer confidence and therefore risk-taking, potentially worsening the impact of the crash of 1929. Despite this, the automobile sector also helped other industries, providing the largest market for steel, rubber, gasoline, plate glass, nickel, tin, hardwood, copper and road construction (under the Federal Highway Act of 1921, highways were built at a rate of 10,000 miles per year), benefiting the economy in the long run. In turn, this also encouraged the growth of new service industries such as garages, motels, gas stations, and used car sales halls. The transportation of goods between factories and markets was also made easier by the development of the automobile industry, as evidenced by the increase in truck registrations from approximately 1 million in 1919 to 3.5 million in 1929. Thus, automobile manufacturing had significant impacts on other industries, perhaps suggesting that it was the main contributor to the American economic boom of the 1920s. It may, however, also have contributed to the downfall of this prosperous period towards the end of the decade. Conversely, other industries and the development of new technologies can be said to have had the greatest influence on American prosperity in the 1990s.1920. Charles Lindbergh, for example, made significant progress in the field of aviation, connecting New York to Paris in just 33.5 hours without stopping. This fostered the development of transcontinental air services, where the Post Office fleet began to fly 2.5 million miles and deliver 14 million letters per year, improving business communication, consumer trust and social connections . However, these later advances may have been influenced by the automobile manufacturing industry, since the Contract Air Mail Act of 1925 meant that "Henry Ford's airline was the first airline to carry American mail." In addition, labor-saving devices such as vacuum cleaners and washing machines, and by 1929, 160 million electrical products had been sold, compared to only 2.4 million in 1912. However, many rural areas America were still without electricity in the 1920s, suggesting that the impact of this industry was not considerable. as important as that of car manufacturers. In contrast, new business methods were being developed at the time, arguably influencing the American economy independently of the automobile industry. The concept of easy credit had a particularly large impact, as it encouraged consumers to spend more and take greater economic risks. In 1929, approximately $7 billion in goods were sold on credit, along with 75 percent of cars and 50 percent of household appliances. This could indicate the impact of this method on the automobile industry, because without it, people would not have felt as inclined to buy cars and other vehicles. Companies such as Ford, Chrysler, and General Motors also used credit facilities to finance their operations, reinforcing the idea that the auto industry was dependent on this new economic phenomenon. In addition, trading companies also purchased oil concessions in Canada, Venezuela, Iraq, and the Dutch East Indies, while dominating the Canadian automobile and electrical markets. American companies have also invested in public health development and school construction in developing countries, demonstrating the United States' determination to grow and sustain its global workforce. Management sciences and Taylorism have also contributed to the growth of American companies and specialized schools, in order to boost the American economy in the long term. By 1928, there were 89 schools of management science in America, with a total of 67,000 students, demonstrating the nation's drive to constantly improve business efficiency and thus the structure of the economy. Additionally, advertising methods improved with the growth of movie theater and radio ownership (by 1928 there were 17,000 movie theaters in the country), emphasizing how these factors may have facilitated the rise of consumerism. and have had an impact on all industries, including automobile manufacturing. It can be argued that government policies also helped the automobile sector and therefore had greater importance for the growth of the American economy. Under the Fordney-McCumber Act of 1922, tariffs were increased to cover the difference between domestic and foreign production costs. As a result, tariffs increased during the 1920s while the level of foreign trade declined, thereby maintaining a high demand for goods. The government also reduced federal taxes in 1924, 1926 and..