During the 1920s American economy experienced a drastic increase in wealth. There were many reasons that caused the 1920’s economic boom in the U.S. During this period American was able to solidify their status as a powerhouse. The 1920’s was known as a fantastic time to be alive as the economy was only going from strength to strength, this was due to many factors. This includes the First World War, growing industrial strength, growth of new industries and the state of mind and many others. In this essay I will decide on whether these and many other factors can be classified as minor or major events and ultimately which was the most influential during the ‘boom' The First World War was the building blocks to the growth of the economy. The war began in 1914, America joined the World War in 1917, and this was 3 long, strenuous and damaging years which America didn’t participate in, as they had declared a state of neutrality. During that period America had suffered no damage unlike allies France and the United Kingdom who had suffered damage in major cities and also the loss of many soldiers. Majority of men went away to fight, this left a gaping hole in the trade industry. America capitalized and traded many materials of which the war amidst country would require. U.S trade with the Allies rose from $825 million in 1914 to $3.2 billion in 1916. Hereby reinforcing the health of the U.S. economy more and more as they continued to trade with the Allies, by 1917 it was believed that the U.S. had loaned more than $2 billion to the Allies, the U.S. loaned such huge amounts of money to the Allies so they could continue to purchase American goods. When America did eventually join the war they sustained virtually no damage on U.S soil however they did reap the rewards as they inherited all major German business. Most notably of which was the chemical industry, which Germany was world leaders at. Overall The First World War was an outstanding success for the U.S economy as they had inherited world leading businesses whilst also gaining billions in trade sale and suffered essentially no damage. There was many contributing the economic boom, however not many had as big off an impact as industrial strength. Industrial strength along with The First World War was essentially the building blocks of the boom, this was due to the array of natural resources the US possessed. Thereby this enabled them to boost the economy as they was able to eradicate the need to import foreign good and keep the money solely in American possession. America was able to produce large quantity of goods due to their well populated country and their variety of natural and raw materials. America boasted large amounts of flat land, these were the ideal position to manufacture on. This along with its large population enabled it to produce more US goods whilst also creating new jobs and ultimately more sales. The amount of sales was largely helped by the high taxation on foreign goods (‘Fordney-Mccumber Tariff Act’). This kept all profit remain solely in the U.S economy, hereby allowing US businesses to grow as they was buying and selling from ea