Question

How is America impacted by the superficial prosperity of the \[1920s\]?

Answer 1

Hint:Superficial wealth implies the appearance of success through investing or acquiring what cannot be afforded on loan in order to look successful. For whole countries, the same could be said if they are based on large deficit spending or if the relationship between productivity and wages is highly unbalanced.

Complete answer:
Usually, the \[1920s\] in the US are offered as an example of an economy focused on the idea of superficial success. That is totally untrue. Revolutionary cars, air transport, broadcasting, the film industry and the promise of ubiquitous power, automation of factories became very possible and in many ways successful but combined with productivity gains and profit margins, wage increases were small. This would have been the best time to explicitly establish trade union rights and to have the legal system rule on labor disputes, but it did not work that way. People who ought to have been paying better go into debt for their improved productivity.
People acquired a new invention on instalment contracts and invested extensively to keep up with what they needed, but focused on the forecast that the economic boom would continue. As the economy went into recession, debt and rapid growth proved risky. Owing to the fact that people took out more loans and purchased more stuff on credit than they could afford to pay back, superficial wealth is considered to be one of the causes of the Great Depression of the 1920s. People pretended in the 1920s that they were able to buy these items and more.

Note:Technological advancement that led to the industrial manufacturing of commodities, the electrification of America, modern mass marketing methods, the availability of inexpensive credit and expanded opportunities were the key factors for America's economic growth in the \[1920s\], which, in turn, produced a large number of buyers.