How had the U.S. economy resumed its strong growth in the early 1920s ? Explain with examples.
The US economy resumed its strong economic growth with the help of a new economic policy called consumerism.
i) During the war, industries were restructured to produce war-related goods. Entire societies were also reorganized for war – as men went to battle, women stepped in to undertake jobs that earlier only men were expected to do.
ii) The war led to the snapping of economic links between some of the world’s largest economic powers which were now fighting each other to pay for them.
iii) So Britain borrowed large sums of money from US banks as well as the US public. Thus the war transformed the US from being an international debtor to an international creditor.
iv) In other words, at the war’s end, the US and its citizens owned more overseas assets than foreign governments and citizens owned in the US.
An example of the same is the economic policy followed by Asian Countries.
The countries of India and China boosted their economy using the same policy.
It led to strong growth of the economy .