Question

explain why the economy of USA was strong in the early 1920s. would you agree that the roots of the great depression lay in the boom? give reasons

Answer 1

1. The war led to the snapping of economic links between some of the world's largest economic powers which were now fighting each other to pay for them.

2. So Britain borrowed large sums of money from US banks as well as the US public.

3. Thus, the war transformed the US from being an international debtor to an international creditor.

4. In other words, at the war's end, the US and its citizens owned more overseas assets than foreign governments and citizens owned in the US.

Hope this helps!!☺

Answer 2

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