Answer:
The Florida land boom of the 1920s was a period of rapid real estate speculation, land development, and population growth in Florida. The boom ended abruptly in 1926, leading to a devastating economic depression in the state that lasted for several years. Here are two causes and two effects of the Florida land boom and bust of the 1920s:
Causes:
- Easy credit: After World War I, the United States experienced a period of economic growth, and banks began to offer loans to finance real estate development in Florida. This easy credit enabled developers to purchase large tracts of land and to build quickly and inexpensively, which fueled the boom.
- Advertising: Real estate developers in Florida advertised heavily across the country, using flashy brochures, billboards, and newspaper ads to promote the state's sunny weather, beautiful beaches, and low taxes. These ads attracted thousands of people to Florida, which drove up land prices and fueled speculation.
Effects:
- Real estate speculation: As land prices soared, people began buying and selling land solely for the purpose of making a profit, rather than for development or use. This speculative buying and selling caused prices to spiral upward, leading to a bubble that eventually burst.
- Economic collapse: When the bubble burst in 1926, many banks failed, and investors and speculators lost their money. The ensuing economic depression was severe, with many people losing their jobs, homes, and savings. Florida's population declined, and the state's economy did not fully recover until the onset of World War II.