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.

Slides:

Advertisements

Similar presentations

Election of 1928 Hebert Hoover wins in a landslide.

Advertisements

The Economy in the late 1920s Angela Brown Chapter 22 Section 1.

The Great Depression and New Deal (1929 – 1941)

The Stock Market Crash of 1929 and the beginning of the Great Depression.

The Great Depression: 4 Causes & A “Spark” Farming Unbalanced economy Credit crisis International Depression “Spark” Black Tuesday.

The stock Market Crash of s Booming Economy Wages up 40% after WWI Stock Market was soaring Many people investing – get rich quick schemes 1920s.

The Economy in the Late 1920's Mr. Chick U.S. History.

1920’s “Crash and Depression” “The Great Depression Begins”

The Economy in the Late 1920s

The Causes of the Great Depression

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

Causes of the Great Depression

Crash and Depression Chapter 22.

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

The Economy in the Late 1920s CHAPTER 14 SECTION 3

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,

LONG TERM CAUSES OF THE GREAT DEPRESSION

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.

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

Business Boom & The Economy in the Late 1920s

Late 1920s Economy “Wonderful Prosperity” Stock market value keeps increasingStock market value keeps increasing –1925 = $27 billion –1929 = $87.

Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression 21.1 Objectives Discuss the weaknesses in the economy of the 1920s. Explain.

Republican candidate Herbert Hoover “A chicken in every pot and a car in every garage” Democrat candidate Alfred E. Smith Outcome: - Hoover wins  Times.

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

THE GREAT DEPRESSION: IT BEGINS. ESSENTIAL QUESTIONS How did the economic, political and cultural choices in the U.S. contribute to the Great Depression?

Warm-ups In 1925, a high school biology teacher from Tennessee named John Scopes was put on trial for teaching evolution to his students. Why do you think.

Russian Revolution Bolsheviks led by Vladimir I. Lenin- “Reds” vs. landowners, gov’t officials, Russian army leaders, and others- “Whites”

(top left side) Opener: What would happen if you spent more money than you actually had?

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)

False Sense of Prosperity Mood of America optimistic about future Medical advances = life expectancy up 10 years Infant mortality down Standard of living.

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

Politics and Prosperity

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

Causes of the Great Depression. Signs of economic trouble Uneven wealth – 1% of population controlled 34% of the wealth. Living on credit – Installment.

Chapter 24, Section 3 Notes. Recession When the economy turns downward and is not doing well.

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

Economy of the 1920s The Calm before the Storm Mr. Mizak Modern American History.

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

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.

Economics in the 1920s From Boom to Bust.

A BOOMING ECONOMY SEC PAGES Define: Recession – scientific management – gross national product – productivity – welfare capitalism - installment.

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.

CAUSES OF THE GREAT DEPRESSION. Today’s Objective ◦ After today’s lesson, students will be able to… ◦ Explain the underlying economic factors and causes.

The Stock Market Crash of What happened in the election of 1928? When Americans elected Herbert Hoover President in 1928, the mood of the general.

1920s Business BOOM! America is awesome! s Economy Economy is booming.Economy is booming. Consumer economyConsumer economy –Depends on large.

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.

Causes of the Great Depression. Economics of the 1920’s Harding, Coolidge, and Hoover Administrations are good to business –Believe that business will.

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.

Causes of the Great Depression. Possible Causes of the Great Depression Stock Market Crash Over production Unequal distribution of wealth Consumerist.

A Business Boom New products and Americans’ power to purchase Conditions that made a consumer economy possible in the 1920s What factors.

HDT 1/5/15 Describe the 1920s in one sentence. Include politics, the economy and society Make it a good sentence!

Warm-ups During the 1920’s, many investors borrowed money from banks in order to speculate in the stock market. This practice was often a bad idea for.

Left Hand Side  27 Automobiles Right Hand Side  A roar or yawn?3/18.

The Economy in the Late 1920s The Streets are Paved with Gold.

Section 2 “A Business Boom” Page  Consumer economy  Installment plan  Gross National Product (GNP)  assembly.

Economy and Policies of the 1920s

The Economy in the late 1920s

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.

Warm-up: The Great Depression section 2

The Economy in the Late 1920s Ch. 14 sec. 3

The Economy in the late 1920s

The Economy of the 1920’s Chapter 14, Section 3

Chapter 22 section 1 and 2 questions

1920’s Business Boom 14.2 Notes.

Presentation transcript:

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 Installment Plans Electric Power Appliance surge Advertising Emotion/Celebrities Rise in Productivity ‘21-’29 GNP up 6% per year

Ford and the Automobile # of cars up 15 million in 20s The Model “T” First car made by Ford The Assembly Line “Democratize the Car” Did not invent, perfected 1915 = $390 per car All cars were black Vertical consolidation # of cars up 15 million in 20s The Model “T” First car made by Ford The Assembly Line “Democratize the Car” Did not invent, perfected 1915 = $390 per car All cars were black Vertical consolidation

A Complex Businessman Good and bad parts to Fords business style Good: $5-a-day pay rate Affordable cars Bad: Violence to fight unions English and Civics classes to “Americanize” workers

Industrial Growth Automobile spurs growth Garages, motels, gas, restaurants, glass, leather Republican laissez-faire policies Limited government regulation of business Small business do well too Aviation industry grows Automobile spurs growth Garages, motels, gas, restaurants, glass, leather Republican laissez-faire policies Limited government regulation of business Small business do well too Aviation industry grows

Bypassed by the Boom Most Americans enjoy better standard of living, but some struggle Unskilled laborers African-Americans Farm economy down WWI demanded lots of food Borrowed money for equipment Surplus after war

Economy in the late 1920’s Economy appears healthy “Wonderful Prosperity” Stock market soared 1929= $87 billion Wages had risen “Everybody Ought to be Rich” Unusually high confidence Risky investments Welfare Capitalism Used to avoid strikes and keep production high Higher wages, paid vacation, etc. Economy appears healthy “Wonderful Prosperity” Stock market soared 1929= $87 billion Wages had risen “Everybody Ought to be Rich” Unusually high confidence Risky investments Welfare Capitalism Used to avoid strikes and keep production high Higher wages, paid vacation, etc.

Economic Danger Signs Uneven Prosperity The rich got richer: 200 companies control 49% Personal Debt Credit spending believing investments would pay for them Playing the Stock Market Speculation: high risk investing Buying on Margin: Buy stock w/ borrowed money Too Many Goods, too Little Demand Trouble for Farmers and Workers Farmers couldn’t pay debts: 6,000 banks close Uneven Prosperity The rich got richer: 200 companies control 49% Personal Debt Credit spending believing investments would pay for them Playing the Stock Market Speculation: high risk investing Buying on Margin: Buy stock w/ borrowed money Too Many Goods, too Little Demand Trouble for Farmers and Workers Farmers couldn’t pay debts: 6,000 banks close