Transcript 1920s Economic Boom! - Ms. Madden`s History

WARM-UP:
The next 3 weeks in a nut-shell
Awesomeness!
1920s
New Industries
CRASH!
Speed Bump
1919
Depression
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
How did the growing importance of the car and other
new industries improve U.S. standard of living?
Industry #1
CARS
•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 #2
Flight
•1920s = development of the
Airline Industry
•Why is the airline industry
good for America?
•Jobs, enjoyment, access to
other nations/materials.
How did the growing importance of the car and other
new industries improve U.S. standard of living?
Industry #3
Radio
•1920s = development of
the Radio Industry
•How is radio important?
•Jobs, entertainment,
spread culture/news etc.
How did the growing importance of the car and other
new industries improve U.S. standard of living?
Industry #4
Advertising
•New Industries lead to New
Products…that have to be
advertised.
•How is advertising important?
•Jobs, helps with sales. Etc
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…
1
New Industries
(cars & radio)
=
More Jobs
1920s Worker
2 Wages
Hours
New “Cool Products
= Increases
3
Demand
Consumer
Society
Positives and Negatives of the 1920s Consumer Society
In the 1920s =Strong Consumer Society
People start buying on Credit/ Installment Plan
Positive?
Negative?
1920s economy was so
Credit allowed
consumers to
buy more stuff
good people
had faith they could pay
off debt = they overspent
DEBT!
Supply-Side Economics
Mellon Plan
Collect more taxes
At lower rate
Lower taxes
Creates more Jobs=
Earn more money
Business and consumers
Invest $$$$ in new
bussiness & goods
1920s BOOM! To BUST
Main Idea:
The prosperity of the 1920s seemed
limitless…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:
Awesomeness!
1920s
New Industries
CRASH!
Speed Bump
1919
Depression
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