1. 20’s Boom

2. New Trends
Writers of the 20’s referred to as the “Lost Generation”, wrote about materialism and consumerism
Babe Ruth – baseball player for Yankees
Jazz Singer was the first motion picture to have sound
Charles Lindberg- First to complete solo transatlantic flight on the Spirit of Saint Louis

3. Stock Market Stock Prices rose to new highs during the 20’s
People thought it would last forever

4. Consumer Trends
installment plan buying – buying an item using smaller payments until the full price is paid product remains with retailer
buying on credit – receiving a loan to pay for an item that generates a debt that you agree to repay later, product of the item is with the buyer

5. Government policies
Laissez-Faire- Government stayed out of the economy and let it run its course.

6. Speculation
Speculation is the idea of buying stock hoping the price would go up so you could sell it at the higher price
buying on the margin – buying a full share of stock for the fraction of the cost
margin call – a call to pay the difference between the fraction you paid for a stock and the full price

7. Bank Loans
many banks loaned money to speculators who hoped to strike it rich of their investment

8. Herbert Hoover
Andrew Mellon – Secretary of the Treasury under Harding, Coolidge and Hoover who believed in trickling down/supply-side economics
supply-side economics – lowering taxes boost the economy

9. 1929
By 1929 prices fell
Causes: technology and mechanization replaced many workers (people lost jobs)
more goods produced than people could buy or afford
businesses sold less causing stock to drop
stockbrokers began making margin calls
customers sold their stocks

10. Black Thursday Black Thursday – stock prices plummeted further
Black Tuesday (Oct. 29th) – stock prices fell by more than $10-$15 billion  $30 billion by November