WARM-UP:

The next 3 weeks in a nut-shell

Speed Bump1919

Awesomeness!

CRASH!

Depression

1920sNew Industries

1920s Economic Boom!

Main Idea:After some issues in 1919

the U.S. experienced stunning economic growth

during the 1920s

1920s Economic Boom!

Today’s Topics:

- 1920s Presidents? Successes, failures?

-How did the growing importance of the car and other new industries improve U.S. standard of living?

- Discuss the positive and negative aspects of the 1920s consumer society

1920s Presidents? Successes, failures?

How did the growing importance of the car and other new industries improve U.S. standard of living?

1920s = Mass Production = BOOM!

A.) What system of production leads to mass production?

* The assembly line allows for things to be made fast…and cheap

* If products are cheap?

- then people will buy more of them!

Real Quick

Make Two Columns:

Column 1 = write down all the materials needed to build a car

Column 2 = write down all the companies that deal with anything car

related

•Henry Ford perfected the assembly line. (cars in the 1920s were extremely affordable)

•Paid his workers $5 a day! = better standard of living.

•Also, cars = mobility for people = spread culture/travel/enjoy life.

•If the car industry fails so would millions of other car-related businesses.

How did the growing importance of the car and other new industries improve U.S. standard of living?

Industry #1CARS

How did the growing importance of the car and other new industries improve U.S. standard of living?

•1920s = development of the Airline Industry

•Why is the airline industry good for America?

•Jobs, enjoyment, access to other nations/materials.

Industry #2Flight

How did the growing importance of the car and other new industries improve U.S. standard of living?

•1920s = development of the Radio Industry

•How is radio important?

•Jobs, entertainment, spread culture/news etc.

Industry #3Radio

How did the growing importance of the car and other new industries improve U.S. standard of living?

•New Industries lead to New Products…that have to be advertised.

•How is advertising important?

•Jobs, helps with sales. Etc

Industry #4Advertising

The ad first appeared in 1920’s, with the claim that blamed a

woman’s single hood on bad breath!  The sales of Listerine jumped from

$100,000 in 1921 to 0ver $4,000,000 in 1927!!!

In order to have a good economy?

• You need to people to buy stuff.

• People who buy stuff are consumers

Three Reasons we had a lot of consumers in the 1920s…

New Industries (cars & radio)

= More Jobs

1920s WorkerWages Hours

New “Cool Products= Increases

Demand

Consumer Society

1

2

3

Positives and Negatives of the 1920s Consumer Society

In the 1920s =Strong Consumer Society

People start buying on Credit/ Installment Plan

Credit allowed

consumers to

buy more stuff

1920s economy was so

good people

had faith they could pay

off debt = they overspent

DEBT!

Positive? Negative?

Supply-Side EconomicsMellon Plan

Lower taxes

Creates more Jobs=Earn more money

Collect more taxesAt lower rate

Business and consumers Invest $$$$ in new bussiness & goods

1920s BOOM! To BUST

Main Idea:The prosperity of the 1920s seemedlimitless…but 1929 would change

everything for everyone

1920s BOOM! To BUST

Great Short Answer Q:

What were the causes of the Great Depression. (5)

Where we are at:

Speed Bump1919

CRASH!

Depression

1920sNew Industries

Awesomeness!

What were the causes of the Great Depression?

Election of 1928 Herbert Hoover

How do we know him?

- Lead the food administration (ration) in WWI

“We are nearer to the final triumph over poverty than

ever before!...I have no fears for the future of our

country. It is bright with hope”

Causes of the Great Depression

Cause 1: Overproduction

Cause 2: Raised Tariffs

Cause 3: Federal Bank = low interest rates

Cause 4: Bad Stock Market Investments

Cause 5: Banks Closed

What were the causes of the Great Depression?

#1: Overproduction

•1920s: got so good at making stuff = we made too much!

•There weren’t enough people to buy all the stuff companies were making.

Supply ____ = prices ____ = profit _____

causes?

Companies to lay-off workers.

So…

I get laid off in the 1920s.

How am I going to pay for things?

CREDIT or Installment Plans.

So basically…I end up in even more debt!

What were the causes of the Great Depression?

#2: High Tariffs Loss of Foreign Buyer

Hawley-Smoot Tariff =

•raised tariffs on foreign goods.

Done to protect American goods…??

Europe = mad so they raised their tariffs too.

So…

I increase the price of foreign goods.

Now I can’t afford American goods, nor can I afford European goods.

Plus no one in Europe is buying American goods.

1.) Why is laissez-fair good for economic growth? How is laissez-fair bad for economic growth?

2.) How did the car industry help create an awesome economy in the 1920s?

3.) How did purchasing items on credit effect the consumer society in the 1920s?

4) Why did people start to lose their jobs in the 1920s

5.) Why was the Hawley-Smoot Tariff a cause of the Great Depression?

What were the causes of the Great Depression?

#4: Stock Market Investments & Speculation

How does the stock market work?

A)Company opens

B)They allow you to buy stock = your money goes to help company grow

C)Company does well = you win! Company does bad =

2.) Stock Market Investments

- Buying on Margin…Margin Call\

•Stock market looked like easy money = more people want to buy into it.

•Borrowed money to pay for stocks = buying on margin

- Speculators

What were the causes of the Great Depression?

#5: Banks Closed / All Savings Were Lost!

-Banks loaned $ to speculators

-Banks invested your money into stock market

-Bank Runs = no more money