Background



America

  • Time of immense economic prosperity
  • Development of the arts
  • Emphasis on consumerism
  • Everyone was investing in the stock market
  • Promoted liberalism because people were profiting from capitalism
  • The Red Scare (1917-1920) - American public fear of communism

Europe

  • Further spread of socialism (a time categorized by radical political movements)
  • Huge economic disparity because of debt accumulated during the war [1]


Significance and Relation to the Ebb and Flow of Liberal Economics



fml.png
Mass production in the 1920's caused by increased demand
People were free to do as they wished. They were free to buy and sell what they wanted. People had money to spend and were confident in the economy so it was easy to spend a lot. The laissez-faire policy was working well to keep citizens happy.


References



[1] Fielding, J. (2009). Chapter 6: The Evolution of modern liberalism. In L. M. Linton & M. Schwalbe (Eds.), Perspectives on Ideology (pp. 199-200). Ontario, Canada: Oxford University Press