People love to romanticize the Roaring 20s. We think of the big “Great Gatsby” type parties, the Harlem Renaissance, and illegal alcohol in every club. It sounds like so much fun that many today anticipate our own Roaring Twenties.
But while they stood around waiting for the Roaring 20s of the 21st century, they missed it unfolding right in front of their eyes. This past decade had so many similarities to the 1920s, that you wonder if our Roaring 20s were really the Roaring Teens.
Economic Growth
Many forget the Roaring 20s started with the Depression of 1920. After this short economic downturn, the economy prospered. New investors bought into the stock market helping it grow. Paying for large purchases — such as a house, car, or fridge — on credit, now became more acceptable. All this new money brought into the economy fueled its growth for years.
It wasn’t until 1929, the Great Depression, that things got very bad.
The Great Recession from 2007-2009 miraculously ended in the first decade of the new millennium. As a result, 2010-2019 was the longest bull market on record. A whole century of no depressions — just slow, constant economic growth, all of which made possible by the favorable borrowing conditions of the Federal Reserve.
“The parties were bigger. The pace was faster. The shows were broader. The buildings were higher, the morals were looser and the liquor was cheaper.”— F. Scott Fitzgerald in The Great Gatsby
Prohibition and Recreational Marijuana
The similarity: The government deciding what you can and can’t put in your body.
The difference: One became legal and the other illegal.
In January 1920, it became illegal to sell alcohol. Alcohol companies and bars, as a result, went out of business. Lifestyles had to be changed. This ultimately led to more criminal activity as people still wanted to drink. Many gangs and criminals rose during this time to supply the people with what they wanted.
In 1933 prohibition ended, the same year many believe the Great Depression ended. Coincidence?
The 2010s saw many states legalize cannabis for recreational sale. This had the opposite effect of prohibition. New companies and shops opened up, spurring a new industry and economic growth. The criminalization of marijuana is still an issue, but hopefully, as the product becomes more socially accepted, that is sorted out.
The Roaring 20s: Accessibility
The Model T has been credited with many things. One of them being the freedom they gave people. Cars went from only for the rich to the common man in the Roaring 20s. Cars allowed people to go where they wanted, when they wanted, to do whatever they wanted. Like many new products, it helped with economic growth, creating a large automotive industry.
Unfortunately, the 2010s did not provide us with flying cars. It did give us, in mass, the smartphone. By the end of the decade, even your grandparents had one. They have made it easier to access the internet, keep in touch via video communication, and catapulted the app industry, especially social media apps.
A (pre-quarantine) week without your car or smartphone seems almost impossible.
The Roaring 20s: Which Was Better?
Well, that’s a personal preference. With how 2020 is starting off this decade, it doesn’t seem like we will have the glory of the Roaring 20s. But like the 1920s, there was great growth and change in the 2010s. Historians might look back on the decade thinking they were gypped out of the time of their lives.