How did increased production efficiencies lead to economic growth and prosperity in the 1920’s
Increased production efficiencies lead to economic growth and prosperity in the 1920’s in a several ways:
1) the stock market
The stock market created wealth quickly.
2) Warren G. Harding’s "Return to Normalcy"
This encouraged economic independence from foreign influence.
3) lower taxes
This gave Americans more money.
4) increased tariffs
This made it more expensive to buy imported products which encouraged Americans to buy American.
5) increased production efficiencies
This lowered prices; the assembly line allowed manufacturers to produce more efficiently.