Unit 9: From Boom to Bust

Vocabulary Supply and Demand: the ratio of the availability of goods to the demand for consumers to buy them Consumerism: a culture of purchasing goods at a rate like never before (commercialism/materialism) Overproduction: producing too many goods when demand is down Stock: owning a piece of a company (companies sell stocks to use people’s money to run their business; business is good, stock value goes up; business is bad, stock value goes down) Credit: buy now, pay later Installment buying: pay in smaller sums over a period of time On-margin: buying stocks using credit

Setting the Stage: World War I US joined WWI in 1917 War time production called for women to join the workforce as men went off to fight

ECONOMY of the 1920s

Part 1: BOOM! World War I: war production = huge economic growth US was only major country able to export goods during the war Jobs were created in weapons factories Middle class is created with this boom in jobs and money After the war: US had no physical damage done so not a big war debt!

Part 2: Consumerism We are going to look at 7 advertisements from actual newspapers, magazines, and movies Think about these questions: 1. What items are being sold? 2. Who is the target audience? 3. What were some of the phrases used to sell the item? What advertising language was used?

Refrigerator Flash Hands

Key Elements Targeting: WOMEN- most are home appliances Advertising Method: Does washing make you tired? Housework made easier. Money down and it’s yours! Encourages installment buying

Factory Production What’s new? Ford’s Model T is mass produced and affordable for the average Joe Home appliances have been invented now that electricity is available in the homes Stoves, refrigerators, radios, washing machines Women returned to the homes when soldiers came back from war

Consumer Culture People were moving to the suburbs With affordable cars, you could live outside of the city and drive into work People now had money There were products to buy The US went consumer-happy and starting spending that money! Chain stores, Nation-wide advertising, catalog shopping Living with “comforts” was becoming the norm

Part 3: The Stock Market With new inventions came new business New businesses needed money so they went public- people could buy a share/stock in a company With some companies experiencing great success and people getting rich, people speculated and bought BIG in the market (this is going to bite ‘em in the butt later) Another BIG mistake- buying on margin- meaning they borrowed money from the bank to buy stocks What does this all mean- I’m confused… So basically there is no ACTUAL money here! People are borrowing from the banks, who are borrowing from their bankers…

Part 4: Farming Housewives weren’t the only consumer group with shiny new products to buy New farming equipment was available to help grow and harvest crops They bought them with CREDIT The agriculture sector began to overproduce their crops

Stock Market Simulation You have $100 You HAVE to invest at least $50 in the market You can put some into savings Use the information sheet to decide what bank you want to put it in and WHY Use the STOCK CHOICES DAY 1 to select the stocks you want to invest in and how many you want

Wrap up of economy War time production made the US’s economy go BOOM Middle class created- they become consumers New inventions- home appliances Buying with CREDIT or in INSTALLMENTS (buy now, pay later or over time) Stocks- buying ON MARGIN (borrowing money from banks) Where do we go from here….

What was the culture of the 1920s like? The Jazz Age What was the culture of the 1920s like?

Celebrity Meet and Greet Step 1: Read your mini-biography about this famous icon of the 1920s Step 2: Answer the question- Why is this person important to the 1920s? Step 3: Create a 6 Word Bio about your person and write it on the index card- use colors and pictures! Step 4: Meet and greet- you will go around the room and meet other famous people of the 1920s. As you meet each person- 1. Write down their name 2. Write their 6 word bio beside it

Analyzing the Celebrities As a group, look at the bios of the people you met Based on the BIOS of the people, categorize the celebrities as you see fit Create a chart with your categories and the people who fall into each one What do you notice about these people? What can their fame tell us about the 1920s?

Stock Market Oh no! The Stock Market Crashed last night! Let’s check how your stocks did today! 1. How much did you invest in each stock? 2. Did the stock go up or down? What is the new value? 3. How much did you gain or lose? 4. Banks closed…if you had money in a bank that closed that money is GONE.

Why did banks close? Remember, people were buying their stocks ON MARGIN- borrowing from the bank. The money in the bank was the PEOPLE’S People made a RUN on the banks to get their money out before it was gone…some people were too late and lost their life savings 

EQ: What were other aspects of the 1920s culture? A look at NATIVISM and BIGOTRY in the United States after World War I. The Harlem Renaissance

The Twenties Times Read each article about “fears” of the Americans during the 1920s What types of stereotypes existed about immigrants? What laws did Americans pass? How did Americans show NATIVISM and BIGOTRY during the 1920s?

1920s vs. 2000s Immigration has been a hot topic in the US for the last 100 years What issues exist about immigration in today’s America? What are politicians and the government doing about immigration? Do you think there should be limitations? Why?

Harlem Renaissance

1920s Packet As a review of the 1920s, complete the packet about the different on-goings in the United States For each paragraph, complete the box to the right You can underline and/or highlight in the paragraph to help you answer the questions.