question_answer

  Did housing and consumer boom lead to prosperity in the US?

Answer:

                  (i) The housing and consumer boom of the 1920's created the basis of prosperity in the US. (ii) Large investments in housing and household goods seemed to create a cycle of higher employment and incomes, rising consumption demand, more investment and yet more employment and incomes. (iii) In 1923, US resumed exporting capital to the rest of the world and became the largest overseas lender. (iv) US imports and capital exports also boosted European recovery and world trade and income growth over the next six years.