1. Economy of the 1920s
Consumerism

2. Essential Questions What was the economy like in the 1920s?
How did it get that way?
What was the result?
What was consumerism?
Did it work?
How did the economy of the 1920s have an effect on America?
What does it mean to be an American in the 1920s

3. Definition
Belief in benefits of consumption: the belief that the buying and selling of large quantities of consumer goods is beneficial to an economy or a sign of economic strength

4. How did it work? Mass production Mass Marketing Consumer Culture
Consumer goods appear in the household
Electricity
Invented: electric washing machine and vacuum cleaner(1903), Ford’s Model T (1908), refrigerator (1913)
Mass Marketing
The department store (Wannamaker, Marshall Fields, Woolworth, Sears etc.)
Advertisements
Builds demand
Consumer Culture
This is a culture that views the consumption of large quantities of goods as beneficial to the economy and a source of personal happiness.

5. How did it work? Creation of consumer credit Buy now, Pay later
Expansion of credit
Buy something with borrowed money, and pay back later (loans over time)
Installment paying
Make a down payment, pays back loan in monthly payments

6. Mass production WWI Technology increased Europe was in ruins
People went off to war
Jobs were vacated
Production was increased
Unemployment dropped, dramatically (too much)
Technology increased
Assembly Line (Ford)
War technology
Europe was in ruins
America was fruitful
There was money to be made

7. Mass Marketing “Machine gun theory”
People had enough to get by, but companies still needed to make money
How are people supposed to know they “need” something if they don’t know it exists?
Department stores broadcast advertisements to as many people as possible,
neglecting “target demographics” and other potentially limiting factors.

9. Mass production
Businesses were operating well and making lots of money
People had jobs, and $$$
Europe, started to get back on its feet

10. The Middle Class Average income hence, middle
Large, in number of people
Some luxury items (non-necessities)
Industrialization
Unionization

11. Innovation & new Industries
Henry Ford, assembly line
Highway construction
Restaurants/hotels
Gas stations/car repair
Airplanes and radios

12. Big Business Prospering and growing Consolidation Holding companies
Merging or combining of two businesses
Republican presidents didn’t mind – said it helped economy
Ford, General Motors, Chrysler
Holding companies
Corporation that owns or controls other companies by buying their stock
Electricity price goes down
Grocery stores on the rise

13. How do Banks work? Deposits Loans Interest Investment
Few big loans vs. Many small loans

14. The Result? Mass Production Mass Marketing Mass Lending (Credit)
What impact does this have on 1920s society?
Temporarily suspend any conclusions about what this means for the 1930s

15. LACK PANTS L – Laissez-Faire A – Assembly Line C – Credit
K – Knowledge
P – Position
A – Advertisements
N – New Consumer Goods
T – Tariffs
S – Share Confidence

17. Stock Market