1. Chapter 12 Part II Mass consumption and cultural values

2. A Booming Economy: The 1920s Income increases People purchase more goods Companies earn higher profits Companies expand and hire more people Boom Cycle

3. Threats to Traditional Values Emergence of urban culture Focus on amusements autos, radio, phonographs, movies, major league sports, new dances, jazz

4. Question: How would your life be different without the automobile? In your notes, list at least 10 ways.

5. The Automobile Fords development of assembly line: item on conveyer belt moves past worker; worker does one part of process Model T developed Allows for development of cheap, plentiful cars Auto within reach of middle class instead of just luxury item for rich Henry Ford

7. Ex.) Model-T 1909 - $850 1916 - $360 1924 - $290Model-T · The efficiency of the assembly line helped to decrease car prices.

8. Automobile Boosts economy Transforms society During 20s, automobile production increases 3X More mobile way of life: suburban living, travel to new places, contact with other ways of life Stimulates other industries Increases social problems

9. Reliance on family car Suburban way of life: road-building attracted Improvements in public transportation: growth of cities

10. New Industries oil rubber gasoline steel Hotels/mo tels restaurants

11. * Employment and the standard of living increased. * As World War I ended, technology focused on consumer goods. Ex) radios, washing machines, telephones, and cars * An increase in wages caused an increase in buying power. 1925 RCA Radiola Super VIII

12. RADIO COMES OF AGE Although print media was popular, radio was the most powerful communications medium to emerge in the 1920s. News was delivered faster and to a larger audience. Americans could hear the voice of the president or listen to the World Series live.

13. Increased Consumption Advertising Installment buying

14. · In the 1920s, people began to purchase items they couldnt afford through the use of installment buying, or buying on credit.installment buying New Goods for Sale · Installment buying increased the demand for goods, while consumer debt increased.

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16. · In the 1920s businesses used advertising to convince consumers that they would be happier if they bought their product. Advertising

18. FADS

19. Ex.) dance marathons, flagpole sitting 1920s: Fads and Fashions Fads caught on quickly during the 1920s.Fads

20. Flapper – young woman in the 1920s who declared her independence from traditional rules.Flapper

21. How did flappers rebel against traditional ways of thinking? drank alcohol in speakeasies

22. How did flappers rebel against traditional ways of thinking? danced at jazz clubs

24. Football Red Grange: first college star to go into new professional football Yale Bowl (v. Harvard), 1920s Notre Dame v. Army 1920s Four Horsemen of the Apocalypse, Notre Dame backfield

25. Baseball 1927 Yankees with Babe Ruth Swept the World Series

26. LOU GERHIG Babe Ruth

28. PROHIBITION

29. One example of the clash between city & farm was the passage of the 18 th Amendment in 1920. Launched era known as Prohibition Made it illegal to make, distribute, sell, transport or consume liquor. Prohibition lasted from 1920 to 1933 when it was repealed by the 21 st Amendment

30. SPEAKEASIES AND BOOTLEGGERS Many Americans did not believe drinking was a sin Most immigrant groups were not willing to give up drinking To obtain liquor, drinkers went underground to hidden saloons known as speakeasies People also bought liquor from bootleggers who smuggled it in from Canada, Cuba and the West Indies All of these activities became closely affiliated with … Speakeasies

31. ORGANIZED CRIME Prohibition contributed to the growth of organized crime in every major city Al Capone – Chicago, Illinois famous bootlegger Scarface 60 million yr (bootleg alone) Capone took control of the Chicago liquor business by killing off his competition Talent for avoiding jail 1931 sent to prision for tax- evasion. Al Capone was finally convicted on tax evasion charges in 1931

32. St. Valentines Day Massacre Valentines Day – February 14, 1929 Rival between Al Capone and Bugs Moran –Capone – South Side Italian gang –Moran – North Side Irish gang Bloody murder of 7 of Morans men. –Capones men dressed as cops

33. GOVERNMENT FAILS TO CONTROL LIQUOR Prohibition failed: Why? Government did not budget enough money to enforce the law The task of enforcing Prohibition fell to 1,500 poorly paid federal agents --- clearly an impossible task! Federal agents pour wine down a sewer

34. SUPPORT FADES, PROHIBITION REPEALED By the mid-1920s, only 19% of Americans supported Prohibition Many felt Prohibition caused more problems than it solved What problems did it cause? The 21 st Amendment finally repealed Prohibition in 1933

36. How does the stock market work? You buy 100 shares of stock of x $5.00 per share How much money have you invested? $500.00 Scenario #1 stock increases to $20 per share 100 shares of stock x $20.00 per share How much are your 100 shares of stock now worth? $2,000.00 How much profit have you made? $2,000.00 stock value - $500.00 initial investment $1,500.00 net profit

37. How does the stock market work? You buy 100 shares of stock of x $5.00 per share How much money have you invested? $500.00 Scenario #2 stock decreases to $1 per share 100 shares of stock x $1 per share How much are your 100 shares of stock now worth? $100.00 How much money have you lost? $100.00 stock value - $500.00 initial investment $400.00 net loss

38. · Millions of Americans invested in the bull market, becoming rich as stock prices rose. bull market Stocks Surge

39. Dow Jones Index January 1921 to September, 1929

41. Panic on Wall Street Black Tuesday: The market loses over ½ its value in a week

42. * Unquestioned faith in the bull market helped lead to the Great Depression!Great Depression · Some people began to buy stocks on margin, which is similar to installment buying.