The Economy of the 1920s Economy - the management of the resources of a community, country, etc., esp. with a view to its productivity. Recession - a period.

Slides:

Advertisements

Similar presentations

Chapter 24 The Great Depression.

Advertisements

The Great Depression Depression

The Great Depression and New Deal (1929 – 1941)

The Great Depression The Party’s over. Twenties Prosperity Many Americans believed the post-war economic boom had limitless growth. National income rose.

Unit 5 - The Business of America

A Growing Economy Chapter 10, Lesson 1.

The Stock Market Crash of 1929 AP US History Unit 9.

Boom and Bust Canada in the 1920s In the 1920s … Canada’s economy recovered quickly after WWI Canada’s economy recovered quickly after WWI By the mid.

Social Studies Chapter 8 Review. Presidents Hoover and Roosevelt felt differently about: A. dams creating electricity B. the role of the federal government.

EQ: WHAT ECONOMIC PROBLEMS THREATENED THE BOOM OF THE 1920S? The Economy of the 1920s.

The Stock Market Crash Background 1920s appeared to be a decade of prosperity = “The Roaring 20s” 1920s appeared to be a decade of prosperity =

Causes of Great Depression Chapter 22. Economy in the 1920s: Booming Economy  WWI brought US out of recession  Americans generally optimistic  1925—stock.

The Great Depression The Economy in the Late 1920’s.

Chapter 22, Sec. 4 The Economy of the 1920’s. Industrial Growth From 1922 to 1928, industrial production climbed 70 percent. As more goods came to market,

1930’s Chapter 11 Notes.  Gross national Product (GNP) – the value of goods and services produced in a nation during a specific period  GNP increased.

14 sec.1 Nation’s Sick Economy. Economic Troubles Housing boom faded Railroads lost business Mining & lumbering suffered.

CAUSES OF THE GREAT DEPRESSION. THE GREAT DEPRESSION KWL ON YOUR PINK POST IT NOTE WRITE SOMETHING THAT YOU KNOW ABOUT THE GREAT DEPRESSION ON YOUR YELLOW.

Objectives Describe the causes and effects of the industrial boom that occurred in the 1920s. Explain how rising stock prices encouraged many to borrow.

THE START OF THE GREAT DEPRESSION. Definition  Depression – A period marked by less business activity, much unemployment, falling prices and wages, etc.

Causes of the Stock Market Crash of Depression : Period of severely reduced economic activity characterized by rise in unemployment.

The Nation’s Sick Economy. Industries in Trouble Key industries barely making a profit Mining and lumbering faced diminished demands Key industries barely.

THE GREAT DEPRESSION.

CHAPTER 14 SECTION 1 THE NATIONS SICK ECONOMY MAIN IDEA: As the prosperity of the 1920s ended, severe economic problems gripped the nation.

The Economy of the 1920s – Prosperity to Poverty Guide Reading Activity – The Great Depression and the onset of economic change.

Chapter 2 Measuring economic activity

Aim: How did the U.S. economy change in the late 1920’s? Do Now: Copy Vocabulary into your notebook 1.Stock: A portion of this as held by an individual.

Americans prosperous called “Roaring 20’s” Depression started in 1929 with the crash of the Stock Market.

Warm-up: Why do you think the US economy boomed after the war ended?

TEKS 8C: Calculate percent composition and empirical and molecular formulas. 1920s Economy.

Boom and Bust USA in the 1920s Compare: Democrats & Republicans Democrats (centre) (social liberalists) Society, protection Taxation (gov’t intervention)

Economy of the 1920s Chapter 14.2, 14.3 Signs of Prosperity Signs of Problems.

Business Fever Chapter 24, Section 2. In the 1920’s factories poured out new goods Refrigerators Other electric appliances New low priced cars Output.

The Great Depression “The illusory prosperity and feverish optimism which marked preceding years have given way to fearful economic insecurity and to widespread.

Economic Troubles on the Horizon Things Aren’t as Good as They Appear to Be!

SECTION 4.  US ECONOMY GREW RAPIDLY IN THE 1920s  HIGH PRODUCTION LARGE COMPANY PROFITS = STOCK PRICES ROSE AS A RESULT  WHAT IS A STOCK??????????

Ch 14 Sec 1 The Nations Sick Economy Rising Wealth A Booming Stock Market A False Sense of faith in the economy.

Describe each picture. What might each represent about the 1920’s?

In just ten years there was a huge increase in production. It has been called the “SECOND INDUSTRIAL REVOLUTION”. It was a boom in CONSUMER GOODS, that.

Boom and Bust USA in the 1920s In the 1920s …The Roaring Twenties America’s economy recovered quickly after WWI The government was Republican and favored.

The Nation’s Sick Economy What caused the economy to go bad at the end of the 1920s?

Chapter 25 Section 1 The End of Prosperity. The Roaring 1920s - Review New products became available to consumers New products became available to consumers.

The Economy in the Late 1920s. Essential Question How did the government’s policies and economic problems of the 1920s contribute to the collapse of the.

The Nation’s Sick Economy The Great Depression (The Hoover Years):

October 28, Notes (part 1)- A Growing Economy of the 1920’s 2. Video Clip: Model T Vocabulary 4. Return Quizzes and Work ***Unit III.

The Roaring 20’s The Economy of the 1920’s. A Consumer Economy Defined as: One that depends on a large amount of spending by consumers Buying on Credit.

1.02 ~ ECONOMIC ACTIVITIES AND CONDITIONS CHAPTER 2 MEASURING ECONOMIC ACTIVITY.

The Wall Street Crash 29th October 1929 The Roaring 20s: The Good 1. Government policy of laissez faire. 2. US industry had been boosted by WWI. 3. Mass.

Warm-up: Why do you think the US economy boomed after the war ended?

The Economy of the 1920 ’ s Chapter 22 Section 4.

Unit #3: 1920’s, GD, New Deal Causes of the Great Depression.

The Economy of the 1920’s Chapter 14, Section 3. Setting the Scene: What were three reasons Americans were optimistic in the early 1920’s? 1.Medical advances.

The Nation’s Sick Economy What caused the economy to go bad at the end of the 1920s?

Economic Troubles Brewing in the Late 1920s & Intro to the Stock Market.

1930’s Chapter 11 Notes.  Gross national Product (GNP) – the value of goods and services produced in a nation during a specific period  GNP increased.

The Great Depression. What was the Great Depression? Time of economic crisis characterized by high unemployment during the 1930s, the beginning is marked.

1.02 ~ ECONOMIC ACTIVITIES AND CONDITIONS CHAPTER 2 MEASURING ECONOMIC ACTIVITY.

Unit #4: Great Depression & New Deal Causes of the Great Depression.

THE GREAT DEPRESSION The Nation’s Sick Economy. The future’s so Bright, I gotta wear shades? 1920’s were a prosperous decade to many, but not all. Trouble.

Warm-up: Why do you think the US economy boomed after the war ended?

EQ: What were the new methods of production during the 1920’s?

Chapter 11; The Twenties A Booming Economy

The Economy During the 1920s

Stock Market Crash, 1929.

Objectives Describe the causes and effects of the industrial boom that occurred in the 1920s. Explain how rising stock prices encouraged many to borrow.

Economy of the 1920’s- -Famous Inventions of the Twenties.

The Economy of the 1920s 22-4.

Chapter 22 – Section 4 The economy of the 1920’s.

The Nation’s Sick Economy

The Economy During the 1920s

Presentation transcript:

The Economy of the 1920s Economy - the management of the resources of a community, country, etc., esp. with a view to its productivity. Recession - a period of an economic contraction/reduction

Industrial Growth A recession occurred after WWI, but economic recovery was strong from 1922 to 1928 Business changed from production of military goods to consumer goods Market: radios, washing machines, refrigerators, and cars, and more!

More goods in market = ___?____ prices; rising incomes = consumers have more to spend/buying powerMore goods in market = ___?____ prices; rising incomes = consumers have more to spend/buying power To encourage buying, businesses offered installment plans (buying on credit) = buy now for $100 and pay later for $120  75% of Americans bought cars with installment plans Chain store & catalogues allowed people to buy outside major cities – leads to a new consumer culture Middle class women especially influenced New products: vacuum cleaners, toasters, washing machines, refrigerators

Trouble Brewing? Gov’t policy helped boost economy High tariffs (_?_) on imports encouraged domestic spending; taxes on rich cut to promote spending Economy is stimulated, but Americans develop ssss pppp eeee nnnn dddd iiii nnnn gggg r r r r eeee cccc kkkk llll eeee ssss ssss nnnn eeee ssss ssss½ mil. people buy new Model A Ford w/o seeing vehicle

$ Booming Stock Market $ Strong economy leads people to invest in stock market – shares/stocks are bought of companies; purchasing of stocks lead to rising stock values = bull market Stocks are so profitable, people buy on margin (borrow $ to buy stocks); as long as market rises everything is good Stocks are so profitable, people buy on margin (borrow $ to buy stocks); as long as market rises everything is good Investors accumulated fortunes, but economists worried that companies’ stock prices did not correlate to their value Investors ignored expert warnings about an overvalued market overvalued market

Farmers and Workers Wealthiest of Americans made up 5% of population 1/5 of U.S. were farmers with many in poverty Farmers produced more crops than were consumed Surplus during WW I sent to Europe – After WW I countries were too poor to buy U.S. products As a result, farmers could not payoff debts

Workers’ wages rose in the 1920s; companies offered benefits (vacations and pensions) to keep employees from joining unions Unemployment is high at about 5% New assembly line (Henry Ford) lowered need for labor and unskilled workers could handle work = lower pay = more $ for owner

Herbert Hoover & Election of 1928 Herbert Hoover & Election of 1928Hoover Republicans nominated Herbert Hoover in national convention held in Kansas City Hoover credited Republican policy for current prosperity Slogan: “a chicken in every pot and a car in every garage” Hoover said America was near “final triumph” over poverty Within one year of Hoover’s entry into White House, U.S. is plunged in an economic depression economic depressioneconomic depression