Bell Ringer Make a list of the top five significant inventions in the history of the world. In your opinion what invention has changed history more than any other?

The Twenties Chapter 13

A Booming Economy After World War I America saw an economic boom like no other Stock prices rose rapidly Factories produced more goods Wages increased making it possible for more people to buy more “stuff” The automobile industry brought about the largest part of this new economy Henry Ford revolutionized production, wages, working condition, and daily life It used to be that only rich city-dwellers could afford cars Ford introduced a new car in 1908 called the Model T that was cheap enough that the average American could buy one The first ones sold for $850

A Booming Economy Ford opened up a new plant in Detroit and began using scientific management moving assembly line- 12 hours to 90 minutes The assembly line allowed Ford to drop the price By 1927 a new Model T cost $290—which allowed 56% of Americans to own a car (up from only 10% in 1919) Ford also revolutionized the life of workers In 1914 he more than doubled the wages of his workers from $2.35 to $5 per day, reduced their work day down to 8 hours, give workers Saturday and Sunday off While he might have been a nice guy, he did this for one very specific reason Workers could now also be customers- and competitors would have to do the same thing for their workers making their employees customers too

A Booming Economy Many inventions have changed the world; gunpowder, the printing press, the internet to name a few The automobile certainly deserves to be listed in the top five glass, steel, rubber, wood, insurance, and road construction industries stengthened oil hotels, diners, convenience stores, and mechanics (all of which helped raise standard of pay by being good paying jobs) The auto destroyed some industries like railroads Autos created freedom Suburbs possble

A Booming Economy The 1920s also saw the rise of the consumer revolution meaning new, affordable goods became available Electric every where but south washing machine, vacuum cleaners, and irons made house-cleaning easier while refrigerators made cooking easier and the radio provided entertainment Why were people buying so much? Advertising!!! Using psychological research advertisers were able to get people to buy more stuff Ads used target audiences

A Booming Economy Americans all of a sudden needed things like Listerine, Cadbury’s, and Coke

A Booming Economy How was everyone able to afford all these nice things all of a sudden? While their pay had increased, it was the rise of the credit industry that made it possible to buy cars and radios People used installment plans 1.Is it good to have credit/debt? Why or why not? 2.What do you think happens when lots of people have credit and the economy turns bad?

A Booming Economy Americans in the 1920s were also fascinated by another “product”—stocks A stock is a certificate of ownership of a company that you purchase In a bull market stocks make lots of money Example: if I were to buy a stock certificate in Apple today worth $10 and tomorrow I could sell it for $100 we would be in a bull market. A bear market is the opposite. Many people viewed the stock market as a get rich quick scheme--~4M owned stocks by 1929 The problem with so many buying stocks is that they didn’t have money to do so, so they took out loans to buy them This is called buying on margin- stupid 3.Why do you think it is a bad idea to buy on margin? 4.What problems could arise if you bought on margin?

A Booming Economy Suburbs also began to grow This drained resources and people from the cities Middle and upper class (typically conservative and Republican as well) moved to the suburbs The inner-cities were more poor 5.How does this relate to today? Do we see the same trends? Name specific examples to support your argument.

A Booming Economy…for some “Leven-cent cotton, forty-cent meat, How in the world can a poor man eat? Mule’s in the barn, no crop’s laid by, Corncrib empty and the cow’s gone dry.” Bob Miller and Emma Dermer “Leven Cent Cotton” On your paper answer the following: 6.What do you think that means? 7.If the country is so wealthy, is it fair for people to live like this?

The Business of Government Harding Administration- trusted other to make decisions Support big business Reduce government spending High tarrifs Voluntary social and labor advancements Created treasury surplus!! Ohio Gang Harding’s advisors who were corrupt Teapot Dome Scandal Secretary of the Interior Albert Fall will sell public oil reserves to make money for himself

Coolidge Harding dies Continued to reduce spending and lowering taxes Didn’t work as well for him Labor unions becoming unhappy Severe discrimination of Black and Mexicans (in west) Did not address issues

America’s role in the world Foreign policy was largely shaped by reaction to WWI Washington Naval Dismarment Kellog-Briand Pact Economically we were still involved in foreign affairs though Collecting war debts from GB and France- they first had to get reperation payments from Germany Dawes Plan- loans to Germany to help them start paying war debts, after stock market crash no more loans