Exit Ticket Louis Armstrong, Langston Hughes and Zora Neale Hurston are all associated with which of the following movements? The Niagara Movement The Lost Generation The NAACP The Harlem Renaissance

Exit Ticket 2) Which statement best describes how women’s roles changed in the 1920s? Traditional child-rearing roles became less important Many women left the workforce Public behaviors of women became freer Many women gained managerial jobs

Exit Ticket 3) What was the difference between traditionalists and modernists? State the difference and then explain an event that shows this difference.

Objective 9.01 and 9.02 I. Economic Boom

A. President Harding Policy Economic policy set by new President Warren Harding Very popular, campaign on “return to normalcy” in 1920 Supply-side economics – economy policy to reduce taxes Idea is that lower taxes means people spend and invest more money, resulting in economic growth. Harding reduced income tax dramatically. Business-friendly: tried to develop new industries to stimulate the economy

A. President Harding Policy Teapot Dome Scandal – Harding administration accepted bribes before leasing out oil-rich land to private company Severely damaged Harding’s good reputation

B. Coolidge Policy Calvin Coolidge becomes president after Harding’s death Believed in laissez-faire economics No government involvement, the “market” will solve any of its problems Result: major economic growth

States and Capitals Quiz Friday New States: Kentucky, Ohio, Maryland, Delaware, Pennsylvania, New York, New Jersey

Do Now What do we mean when we say that the economy is in a depression or recession? How do you think we get to that point? What does that mean for regular Americans?

C. Stock Market Growth People buy or sell “stocks” or “shares” in different companies. Owners of shares are part owners of that company- they make or lose money based on company performance. Stocks are “bets” that the company is going to do well in the future. Everyone saw the stock market in the early 1920’s as being very good and wanted to invest.

C. Stock Market Growth People started buying stocks “on margin” – taking out a loan to buy a stock. Investor pays 10% of price today and promises to pay the other 90% later on. Speculation: buying high-risk stocks (less likely to make money) to get big returns on investment. Why did people make these risky investments?

D. Consumer Economy Assembly line becomes widespread in industries. Products are cheaper to produce, so they are cheaper to buy. Result: People bought lots of new things like cars and appliances. Used installment plans: monthly payments on big items like radios and cars. Anyone could get these plans regardless of how much money you had – “easy credit” Why might installment plans be problematic?

Guided Practice Explain one of stock market or consumer strategies discussed in class through a skit. Three you can choose from:

Objective 9.01 and 9.02 II. Signs of Trouble

A. Overproduction Mechanization of farming and factories produced too many goods Agricultural product prices plummet No one can afford to buy all of the factory goods Coolidge didn’t believe in direct relief: no government assistance for people losing money Result: Farmers into deep poverty, warehouses filled with unsold goods

B. Income Inequality Rich get richer, and everyone else grows just a little bit Majority of people don’t have money to pay for new goods, have only been able to buy them through easy credit/installment plans.

C. Stock Market Begins to Dip Stock prices started falling – problems start to hit with people who bought stocks “on margin”. When is the best time to sell in this market? Why would someone who bought stock “on margin” be quicker to sell than others? Month Stock Market Value April 1929 319 May 1929 297 June 1929 334 July 1929 348 August 1929 380 September 1929 343 October 1929 ?

Objective 9.01, 9.02 III. Economic Bust

A. “Black Tuesday” October 29, 1929 Stock prices are dropping, so companies issue a “margin call” Everyone who bought stocks “on margin” have to pay back the 90% they borrowed Investors panic and everyone sells their stock Effect: Prices plummet Beginning of the Great Depression

B. Bank Runs Banks never hold all of the money you put in it Use that money to make loans, invest. “Black Tuesday” effect: People couldn’t repay their loans for stocks. Banks lost the money they invested in the stock market. Result: Banks lost a lot of money, some lose so much they start closing If bank closes, everyone who put money in loses all of their money

B. Bank Runs People hear about banks closing, rush to banks to withdraw their money. Effect: Many more banks close, others barely survive. Effect: Didn’t lend money to many people anymore, so those needing money couldn’t get it – economy gets worse.

C. Hoover’s Response President Herbert Hoover: elected right before the market crashed. Response to the economic crisis: laissez- faire approach. What does that mean he did?

D. Smoot-Hawley Tariff Act (1930) New tariff on imported goods Goal: Make American people buy more American-made goods and boost the economy Impact: made the economy worse – foreign countries responded by putting tariffs on American products, so the U.S. exported less.

Independent Practice Imagine you are a person (investor, farmer, factory owner) living in the Roaring Twenties and have tried to “get rick quick.” Tell me what strategies you have been using to do so. As we’re getting into 1929, what is starting to happen to you? What do you think might happen in the future? Your response should be 6-8 sentences.

Exit Ticket Which of the following best describes the principle of taking out a loan to buy a stock? Buying stock on margin Overproducing interest Creating a “run” on a bank Buying on the installment plan

Exit Ticket 2) Which of the following was an effect of “Black Tuesday”?   Many people lost everything as stock prices fell and banks closed. People rushed to put their money in banks rather than the stock market. President Hoover’s popularity grew. People paid off their debts and started investing in more bonds.

Exit Ticket 3) Why did the booming economy of the 1920’s bust? Your answer should include at least two reasons.