In the 1920s, the economy of the world had started recovering after World War I. The United States emerged as the dominating economic powerhouse taking over from Great Britain, which was now struggling to get back lost markets.
Technological advances had been made in the 1920s, making business more conducive for various countries including Germany, Russia, Japan and other European regions. Things like automobiles, vacuum cleaners, radios, refrigerators, air travel and talking movies were available in abundance making trade much more lucrative and convenient.
Even though things were looking good with regards to the general world economy, some of the challenges that arose included an agricultural crisis in the U.S. The country was not able to meet the demands of European countries during the war, prompting a need for expansion to farmlands. However, right after the war, European countries started producing enough crops, leading to complications for American farmers who had greatly invested in the expansion.
Another problem during this period was that the U.S. had enough industries and raw materials to sustain itself while also supplying other countries with products. This meant that the cash flow was not liberal as money would only circulate within the U.S. and not around the world.Learn More
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