The United States has gone through periods of dramatic growth known as "booms" as well as periods of crisis known as "busts." These booms and busts didn't occur out of nowhere. There were causes that led up to these economic cycles.
During the 1920's, which later on became to be known as the "Roaring Twenties", the United States economy grew rapidly due to people spending on new goods as well as new ideas for a better lifestyle were born. Prior to the 1920's, only the rich were able to obtain the luxuries while the working class lived in poor conditions. But during this time period, people were able to spend money so when the new goods came out, they bought them in hopes that it would help improve their lives. Some of those goods were telephones, radios, refrigerators, microwaves, cars, and other things.
Besides the consumption of goods, another industry that helped the 1920's boom in the United States was the credit industry. Before, only people who were well off could borrow money or people who pawned items at the pawn shop. When the new idea of credit was introduced, people were able to place a small deposit of items they wanted to buy and pay the rest over time. This allowed the average person to be able to afford items that they wouldn't be able to buy before. This permitted for money to be circulated into the system instead of it being set aside in someone's pocket and not going anywhere.
One of the new industries that helped the boom is the car industry. Henry Ford had the idea to create a cheap car that people can afford and help create a cycle of prosperity. He used mass production techniques to be able to build the card cheap and fast. The production line took the work to the workers so that there would be specific tasks for each person instead of one person doing everything. There would be one who would be in charge of the wheels while another was in charge of the engine or another car part.
