Presentation on theme: "Chapter 12 Part II Mass consumption and cultural values."— Presentation transcript:
Chapter 12 Part II Mass consumption and cultural values
A Booming Economy: The 1920s Income increases People purchase more goods Companies earn higher profits Companies expand and hire more people Boom Cycle
Threats to Traditional Values Emergence of urban culture Focus on amusements autos, radio, phonographs, movies, major league sports, new dances, jazz
Question: How would your life be different without the automobile? In your notes, list at least 10 ways.
The Automobile Fords development of assembly line: item on conveyer belt moves past worker; worker does one part of process Model T developed Allows for development of cheap, plentiful cars Auto within reach of middle class instead of just luxury item for rich Henry Ford
Ex.) Model-T 1909 - $850 1916 - $360 1924 - $290Model-T · The efficiency of the assembly line helped to decrease car prices.
Automobile Boosts economy Transforms society During 20s, automobile production increases 3X More mobile way of life: suburban living, travel to new places, contact with other ways of life Stimulates other industries Increases social problems
Reliance on family car Suburban way of life: road-building attracted Improvements in public transportation: growth of cities
New Industries oil rubber gasoline steel Hotels/mo tels restaurants
* Employment and the standard of living increased. * As World War I ended, technology focused on consumer goods. Ex) radios, washing machines, telephones, and cars * An increase in wages caused an increase in buying power. 1925 RCA Radiola Super VIII
RADIO COMES OF AGE Although print media was popular, radio was the most powerful communications medium to emerge in the 1920s. News was delivered faster and to a larger audience. Americans could hear the voice of the president or listen to the World Series live.
· In the 1920s, people began to purchase items they couldnt afford through the use of installment buying, or buying on credit.installment buying New Goods for Sale · Installment buying increased the demand for goods, while consumer debt increased.
If paid in full within 12 months.* ON ALL MAJOR APPLIANCE, FLOORING, OUTDOOR POWER EQUIPMENT AND GRILL PURCHASES of $299 or more made on your Lowes® Consumer Credit Card. *Lowe's® Consumer Credit Card: Applies to single-receipt, in-store Major Appliances, Flooring, Outdoor Power Equipment and Grill purchases of $299 or more (and any other items purchased on the same sales receipt) made March 6 through March 19, 2008 on a Lowe's Consumer Credit Card account. No monthly payments will be required and no finance charges will be assessed on this promotional purchase if you pay the following in full within 12 months: (1) the promotional purchase amount, and (2) any related optional credit insurance/debt cancellation charges. If you do not, finance charges will be assessed on the promotional purchase amount from the date of purchase and monthly payments will be required. Standard account terms apply to non-promotional purchases. APR is 21.99%. Minimum finance charge is $1.00. Offer must be requested at time of purchase. Offer is subject to credit approval.
· In the 1920s businesses used advertising to convince consumers that they would be happier if they bought their product. Advertising
One example of the clash between city & farm was the passage of the 18 th Amendment in 1920. Launched era known as Prohibition Made it illegal to make, distribute, sell, transport or consume liquor. Prohibition lasted from 1920 to 1933 when it was repealed by the 21 st Amendment
SPEAKEASIES AND BOOTLEGGERS Many Americans did not believe drinking was a sin Most immigrant groups were not willing to give up drinking To obtain liquor, drinkers went underground to hidden saloons known as speakeasies People also bought liquor from bootleggers who smuggled it in from Canada, Cuba and the West Indies All of these activities became closely affiliated with … Speakeasies
ORGANIZED CRIME Prohibition contributed to the growth of organized crime in every major city Al Capone – Chicago, Illinois famous bootlegger Scarface 60 million yr (bootleg alone) Capone took control of the Chicago liquor business by killing off his competition Talent for avoiding jail 1931 sent to prision for tax- evasion. Al Capone was finally convicted on tax evasion charges in 1931
St. Valentines Day Massacre Valentines Day – February 14, 1929 Rival between Al Capone and Bugs Moran –Capone – South Side Italian gang –Moran – North Side Irish gang Bloody murder of 7 of Morans men. –Capones men dressed as cops
GOVERNMENT FAILS TO CONTROL LIQUOR Prohibition failed: Why? Government did not budget enough money to enforce the law The task of enforcing Prohibition fell to 1,500 poorly paid federal agents --- clearly an impossible task! Federal agents pour wine down a sewer
SUPPORT FADES, PROHIBITION REPEALED By the mid-1920s, only 19% of Americans supported Prohibition Many felt Prohibition caused more problems than it solved What problems did it cause? The 21 st Amendment finally repealed Prohibition in 1933
How does the stock market work? You buy 100 shares of stock of x $5.00 per share How much money have you invested? $500.00 Scenario #1 stock increases to $20 per share 100 shares of stock x $20.00 per share How much are your 100 shares of stock now worth? $2,000.00 How much profit have you made? $2,000.00 stock value - $500.00 initial investment $1,500.00 net profit
How does the stock market work? You buy 100 shares of stock of x $5.00 per share How much money have you invested? $500.00 Scenario #2 stock decreases to $1 per share 100 shares of stock x $1 per share How much are your 100 shares of stock now worth? $100.00 How much money have you lost? $100.00 stock value - $500.00 initial investment $400.00 net loss
· Millions of Americans invested in the bull market, becoming rich as stock prices rose. bull market Stocks Surge
Dow Jones Index January 1921 to September, 1929