The Jazz Age: Redefining the Nation, 1919-1929

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“A significant reason for American wealth in the 1920s was the government’s encouragement to raise wages, as well as drastically cutting the income tax on the highest earners, thereby freeing capital for re-investment into the market. With the laws and economy favoring business, and radical elements shamed or legislated out of relevance, the circumstances were perfect for growth. While the richest elements remained rich, and were largely the only ones to directly benefit from a booming stock market, the middle class also saw real growth, such as in the beginning of American cars, radio and other forms of popular culture, made possible by mass production and mass access to that production.
On the contrary, rural America suffered during this time as its jobs disappeared or relocated to factories, and its population shriveled. Rural elements and rural culture were rapidly overtaken or outdated by the shift toward commercialized mass consumption.”

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