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? Back up your answer with reasoning and logic. When you are finished, hold on to your paper. You will answer more questions throughout the lecture today. Make sure you number them correctly.

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 Ford DID NOT invent mass production or cars! It used to be that only rich city-dwellers could afford cars “To the countryman, cars are a picture of the arrogance of wealth”—Woodrow Wilson, 1906 City drivers would go into the country, scarring livestock and putting dust everywhere

A Booming Economy 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 Ford opened up a new plant in Detroit and began using scientific management This was a method of improving efficiency by looking at each step of a manufacturing process He realized that the cars could be put on moving assembly lines where at each station a worker who specialized in that part would add something to the car This allowed the production time for a car to go from 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)

A Booming Economy 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 He reduced their work day down to 8 hours He was the first industrialist to give workers Saturday and Sunday off While he might have been a nice guy, he did this for one very specific reason If workers have more money and more leisure time then they will become potential customers for his product Also, if other companies want to recruit good employees, they would have to pay like he did meaning their workers would also become potential customers for his product

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 Industries were created/strengthened by the auto industry including glass, steel, rubber, wood, insurance, and road construction The auto made people seek oil, leading to the rise of Texas and issues in the world today With roads came a need for 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 for people to travel when they wanted and allowed for summer vacations and Sunday drives Autos allowed for people to live outside the cities and drive in for work (this begins the rise of suburbs, but it will become a major boom in the 1950s)

A Booming Economy The 1920s also saw the rise of the consumer revolution meaning new, affordable goods became available Electric was now widespread (except in the South) New inventions like the washing machine, vacuum cleaners, and irons made house- cleaning easier while refrigerators made cooking easier and the radio provided entertainment If this sounds familiar you’re probably thinking of the second room in Disney’s Carousel of Progress (It’s a great big beautiful tomorrow... ♫) Why were people buying so much? Advertising!!! Advertising became a rapidly growing industry Using psychological research advertisers were able to get people to buy more stuff Ads used target audiences (why do you think they advertise beer and trucks during football and baby products during soap operas and game shows…)

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 which is a credit with a monthly payment (although they usually had to make a down payment, just like cars today) On your bell ringer paper answer the following: Is it good to have credit/debt? Why or why not? 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 Most people who own stocks own a tiny percentage of that company 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

A Booming Economy 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 It is also called stupid On your paper answer the following: Why do you think it is a bad idea to buy on margin? What problems could arise if you bought on margin? Most people believed that the stock market was in a “new era” and that their value would continue climbing (busts were a thing of the past)

A Booming Economy Farmers left their farms and immigrants were settling in the cities The Great Migration (black people moving north during WWI) also increased populations in northern cities The increased population boom called for a way to house all these people Skyscrapers were the answer which also increased the steel, glass, and masonry industries

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 On your own paper answer the following: 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: What do you think that means? If the country is so wealthy, is it fair for people to live like this?

Assignment Take notes on 13.2 You must paraphrase the content under each of the blue and red headers For the sections “The Ohio Gang Cashes In” and “The Teapot Dome Scandal” you may draw a political cartoon that explains the section (instead of writing a summary) For the Primary Resource quote on p. 412 you MUST explain the point of Coolidge’s speech Answer the 3 “Checkpoint” questions Explain the items in the chart on page 413 Due next class if we don’t have enough time today

The Business of Government