1920s: Decade of Prosperity

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Presentation transcript:

1920s: Decade of Prosperity After WWI: Transition from war to peacetime economy. goods scarce >> prices up >> cost of living up impact: workers lose jobs, paychecks don’t keep pace w/prices 1919: 3,600 strikes wages behind cost of living strikers: accused of being anti-American, Bolsheviks

By 1921 Economy Booming WHY: strongest economic power after World War I Europe limited competition & tariffs in place increased efficiency of production Technology, electricity, assembly line climb in real wages & decline in average employee's work hours boom in consumer goods; buy now – pay later New industries, esp. car 1927: 4 out 5 cars in the world owned by Americans oligopolies up (a few companies control an industry); unions decline stock market & “easy money”

Glorification of Business Bestseller by Bruce Barton, The Man Nobody Knows, (1925-26) Jesus as first modern business leader 3 most admired men in history: Jesus, Napoleon, . . . & Ford President Coolidge: “The man who builds a factory builds a temple – the man who works there worships there.”

Laissez-faire Capitalism Role of gov’t Tax cuts, deregulation, conservative Supreme Court Harding and Coolidge Administrations Gov’t and business intertwined 3 examples in Ques. 2 of Odyssey Decade of Prosperity hwk

Industry’s Labor Policies (see Odyssey Decade of Prosperity hwk) American Plan? open-shop Yellow-dog contract Welfare capitalism? Example from hwk? Impact on unions?

FOR EVERYONE??? Decade of Prosperity Richest 1% controlled 59% of the wealth in 1923 Tax cuts favored the wealthy Over 65% had incomes below $2,000 (i.e., limited ability to buy cars and other consumer goods)