1920's decade

              1920’S decade featured economic and for many people, care free living. This decade began with a roar and ended with a big crash, giving it the name “the booming twenties and the financial crash”.

After the First World War the economy was stagnant in Europe and America. Europe had a great dependency on America, as they provided Europe with cheap credit. After the war all the countries had to pay the money back to America, but Germany had to pay much more, for the reparations of the warThis war benefited the U.S.A, as it increased industrial production and gave American firms new markets lost by the Europeans. As it also benefited the government, they increased salaries; wealthy people taxes were cut, so that way they had more money, being able to invest it... This was known as the “Booming Twenties”

Soon after that, their luck came to an end. Nearly half of the American population were forced to live below the poverty line. Duties on products were a must, to try and protect them from U.S. imports. As the companies in the U.S were doing really well people started to borrow money to buy lots of shares. Europeans depended on U.S. loans. This was known as the “financial crash”