Warm Up: Describe the economic policy of 1920s Republicans with one term.DOK: 1; S. 2; Learning Target: I can describe people, events, ideas and changes of the “roaring 20s”, the “Jazz Age.”

U. S. HistoryJanuary 31, 2013

Class work: Notes 14.2 and 3 (test Th and FR) A BUSINESS BOOM

Nothing over here until we add questions later…

Before the 1920s:No fast foodNo shopping centersNo billboards or highwaysValue THRIFT: if you need it, you get it

with cash, the essentialsCredit: immoral

DOK: 1; S. 2; Learning Target: I can describe people, events, ideas and changes of the “roaring 20s”, the “Jazz Age.”

**1920s: Mall (strip) A&W root beer Roads/roadside – think “Cars” Businesses dependent on selling, create

“installment plans”, advertising convinced America credit is OK

Interest: 11-40% CONSUMER economy: depends on big

spending by consumers; incomes UP 28% 1914-1926

Spend: credit, cost less, advertising, money available, new productsincreased profits leads to higher wages which leads to spending…starts all over

DOK: 1; S. 2; Learning Target: I can describe people, events, ideas and changes of the “roaring 20s”, the “Jazz Age.”

DOK: 1; S. 2; Learning Target: I can describe people, events, ideas and changes of the “roaring 20s”, the “Jazz Age.”

What is advertising about today? What do they use to convince folks to BUY?

How similar is this to the 1920s?

Budget: 60% to cars; 70% furnishings; 80% vacuum, radios, cleaners, refrigerators; 90% water machine

ELECTRICITY: fridge to the H2O machine; 4X 1913-1927 users; lights 16-63%

Again: Rural vs Urban, wind powered generators

ADVERTISING: GE toasters, ovens, sewing machines, coffee, irons, vacuums (before it was basic info, 1920s more about image, insecurity, fear, celebrities)

PRODUCTIVITY: a worker’s level of output; GNP: goods and services country produces in a year; 1921-1929 6% growth per year compared to 1910-1920<1% growth: why? Resources, management, technologies, oil, assembly line

DOK: 1; S. 2; Learning Target: I can describe people, events, ideas and changes of the “roaring 20s”, the “Jazz Age.”

• Ford and the Auto• 1880s Germany• 1892 Charles and Frank Duryea• 28 years=8 million cars• 1920s=15million• Model T: Horseless carriage; 1896

quadricycle• 1908: 30K Model Ts sold• Assembly line, didn’t invent but increased

efficiency• Produce more in less time=sell low

enough for ordinary citizen can afford• One specialized job, but strained workers• 24 seconds =Model T• 1908-1927 50% cars made in the world

are Model T• 1915 cost $390: black paint dried faster,

cheaper

Ford: the good and not so much

1914 $5 pay per day

Don’t fight (WWI)Greenfield Village

Violence used to fight unions

WWI: Americanization: English/Civics

Home inspectionStubbornAnti-Semite1918 DearborneScapegoats DOK: 1; S. 2; Learning Target:

I can describe people, events, ideas and changes of the “roaring 20s”, the “Jazz Age.”

DOK: 1; S. 2; Learning Target: I can describe people, events, ideas and changes of the “roaring 20s”, the “Jazz Age.”

GM came out with colors! 1925 Model T in colors! 1927= no more Model T, now Model A Vertical consolidation: iron mines

(steel mills, coal mines); plant and production; forests, glassworks, RR, ships

CHANGES bc of Auto: Hwy 66 *steel Garage *rubber Car dealers *gas Motels *glass Restaurants *leather Campgrounds Gas stations Suburbs expand= housing

DOK: 1; S. 2; Learning Target: I can describe people, events, ideas and changes of the “roaring 20s”, the “Jazz Age.”

NO BOOM Unskilled laborers (African American

migrants) Agriculture: Farm prices down,

borrowed for machines and land in good times, can’t pay

Cotton textiles/soft coal: postwar=low profits, wages

RR: mismanagement, competition, labor unions

The Economy in the Late 1920s 14.3

To what extent did these grow out of natural optimism?

How should warning signs have been managed

Do we have warning signs now? Are we managing them well?

CONFIDENT, robust, innovation Danger signs:

Uneven prosperity Debt Roller coaster stock market Surplus manufacturing

Optimism:medical advances: less whooping cough, diptheria, infant deaths; greater life expectancy (59 and 63, up 10 years)

Hoover in 1928: Rugged individualism; abolition of poverty and fear, had been secy of commerce, WWI food relief

DOK: 1; S. 2; Learning Target: I can describe people, events, ideas and changes of the “roaring 20s”, the “Jazz Age.”

DOK: 1; S. 2; Learning Target: I can describe people, events, ideas and changes of the “roaring 20s”, the “Jazz Age.”

What is our ue now? What is healthy?

1925 stocks $27B 1928 stocks Up$11B, it’s the

weathervane, NYT 1929 stocks $87B Wages up 40% since 1914 Unemployment 4% Bruce Barton: The Man Nobody Knows;

Jesus in Business Raskob, corporate leader: everybody

ought to be rich Save $15 week, in 20 years; have $400 month

income

Welfare Capitalism Labor strikes, 1919 stable AVOID UNION! Intervention, strikes, high productivity Raise wages, benefits, company loyalty, morale,

company unions Less labor unions

DOK: 1; S. 2; Learning Target: I can describe people, events, ideas and changes of the “roaring 20s”, the “Jazz Age.”

Warning signs:1. Uneven prosperity

-rich+richer-huge corporations not small businesses; 200 companies get 49% industry-families: 1929 20K families (.1%) had >$100K (34% country’s savings); 71% individual and families make <$2500 a year (minimum standard of living, 80% have NO savings), kids even worked; taxes didn’t help

*Mellon, secy $$ (rich) pushed to lower taxes only wealthy paid then, they benefitted

2. Personal debt: affordable/available; b$ fear debt, waited

3. Playing Stock Mkt. Get rich quick. -speculation: make high risk investment to get return, B4 WWI, buy with cash, now…

DOK: 1; S. 2; Learning Target: I can describe people, events, ideas and changes of the “roaring 20s”, the “Jazz Age.”

-buy on margin: invest for a “sale price” (10-50% of real cost of stock) then have a “loan” to pay for the rest- if you don’t “win”, you lost your money AND have DEBT, b4 just lost money. Brokers can charge interest rates and demand payment any time

4. Too many goods, too little demand-industries slow-auto slump in 1925: ripples to steel, rubber, glass-housing also ripples

5.Trouble for farmers and workers-debt extra time 6K farms fail-McNary-Haugen Farm Relief 1927, 28: Coolidge vetoed: not govt job to increase crop prices-factory workers/conditions cotton and textiles, mining, 56 hour week for 16-18cents= $10 week

Exit

Fill in the “L” of your KWL chart from the first day back. If you didn’t make one or you have lost it, brainstorm everything about the 1920s you have learned.

Test tomorrow in lab 252.

DOK: 1; S. 2; Learning Target: I can describe people, events, ideas and changes of the “roaring 20s”, the “Jazz Age.”