Transcript 1920s intro notes

U. S. History
January 2015
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.”
1
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 food
 No shopping centers
 No billboards or highways
 Value THRIFT: if you need it, you get it with
cash, the essentials
 Credit: immoral
 DOK: 1; S. 2; Learning Target: I can
2
describe people, events, ideas and
changes of the “roaring 20s”, the “Jazz
 **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
3
spending by consumers; incomes UP
28% 1914-1926
 Spend: credit, cost less, advertising,
money available, new products
increased 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.”
 Budget: 60% to cars; 70% furnishings;

 What is
advertising
about
today?
What do
they use to
convince
folks to
BUY?
4
 How



80% vacuum, radios, cleaners,
refrigerators; 90% water machine
ELECTRICITY: fridge to the H2O
machine; 4X 1913-1927 users; lights 1663%
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%
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
•
•
•
•
•
•
5
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
Ford: the good
and not so much
 Violence used to fight
 1914 $5 pay per day
 Don’t fight (WWI)
 Greenfield Village






unions
WWI: Americanization:
English/Civics
Home inspection
Stubborn
Anti-Semite
1918 Dearborne
Scapegoats
 DOK: 1; S. 2; Learning Target:
6
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
 Garage
 Car dealers
 Motels
 Restaurants
 Campgrounds
 Gas stations
7
 Suburbs expand= housing
*steel
*rubber
*gas
*glass
*leather
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
8
The Economy in the Late 1920s 14.3
 CONFIDENT, robust, innovation
 To what
extent did
these grow
out of
natural
optimism?
 How should
warning
signs have
been
managed
 Do we have
warning
9 signs now?
Are we
 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.”
 1925 stocks

 What is
our ue
now?
What is
healthy?





$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
10
 AVOID UNION! Intervention, strikes, high productivity
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
• Personal debt: affordable/available; b$ fear debt,
waited
• Playing Stock Mkt. Get rich quick.
11
-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” (1050% 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
• Too many goods, too little demand
-industries slow
-auto slump in 1925: ripples to steel, rubber, glass
-housing also ripples
• Trouble for farmers and workers
12
-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.”
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