1. The Roaring 20’s Leads to America’s Great Depression
From Boom To Bust
The Roaring 20’s
Leads to America’s
Great Depression

2. Political Culture League of Nations Limits on Immigration Tariffs
War Debts

3. The Roaring 20’s Prohibition: 18th Amendment Flappers Sports Heroes
Speakeasies
Bootleggers
Moonshine
Al Capone
Flappers
Sports Heroes
Charles Lindbergh (Lucky Lindy)
First to cross the Atlantic non-stop flight
New York City to Paris
Standard of living
Urban life
Prohibition- The “Noble Experiment”; legacy of Progressive Movement
Eighteenth Amendment- ratified in 1919;enforced by Volstead Act
prohibited the “manufacture, sale or transportation of intoxicating liquors”
try to end corruption, immorality, drunkenness
gives rise to organized crime- bootleggers
“Scarface” Al Capone- $60 million in 1927
St. Valentine’s Day Massacre die gunned down by rival gang members
moonshine- private stills
speakeasies- illegal clubs
Flapper- term comes from a popular drawing of a dancing woman with her boots open and flapping; considered to be youthful woman
Charles Lindbergh- prize of $25,000 for non-stop flight- contest
Spirit of St. Louis: May 20, Long Island- 7:52 AM
34 hour flight- Le Bourget Airport near Paris
Not allowed to fly back; 3.5 million letters in a month; 5000 poems written;“Lindy” dance is created; voted most admired American

4. Business in the 1920’s Harding
“A Return to Normalcy”

5. Business of the 1920’s
“The chief business of the American people is business…The man who builds a factory builds a temple…a man who works there worships there.”

6. Court Cases of the 1920’s

7. An End To Prosperity Buying on credit Stock Market-Speculation
Installment Plans
Stock Market-Speculation
Buying on Margin
Bull Market (Buy)
Bear Market (Sell)
1920s- boom on Wall Street- bull market
purchase of stock as key to instant wealth
many bought on margin- pay for part of value
remainder placed on credit with broker
1-3 mill. of 120 mill. people owned stock 1929
1/6 of investors bought on margin
Black Tuesday- “The Big Crash”- October 29, 1929
selling of stocks begins- bear market
13 million shares sold at reduced values
$26 billion lost by mid-November
General Electric- selling for 396 in 1929, 34 in ‘32
US Steel- fell from 261 in 1929 to 21 in 1932
symptom of greater underlying weakness in economy
effects- “run” on banks- loans to cover losses
withdrawal to cover installment buying
5000 close between 1929 and 1932
business- 100,000 close by 1932
25% unemployed by to 12 million

8. Cause and Effect Over Production Declining Trade Over Borrowing
Uneven Wealth Distribution
Farmers-Dust Bowl
causes- conditions leading to instability
overproduction- outpacing consumption
decline in trade contributes to the problem
declining trade- Smoot-Hawley tariff
1930- United States passes protectionist law
European nations responded- worsens crisis
overborrowing- prices rose faster than wages
use of the installment buying
uneven wealth distribution- worker’s wages low
corporate money often went to profits
2% of population receives 28% of wealth
lower 60% received 24%
farmers feel pinch of credit and falling prices