A Growing Economy Chapter 10, Lesson 1.

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Presentation transcript:

A Growing Economy Chapter 10, Lesson 1

Essential Question What were some factors that helped improve the economy in the 1920s? Hypothesis:

Vocabulary Boom Assembly line Division of labor Stock Stock market

Changes in Power U.S. elected new president Warren G. Harding in 1920 Warren G. Harding promised “Return to Normalcy”

Changes in Economy Economic boom: a period of fast economic growth International trade increased during and after the war When the U.S. won the war, many European countries had to repay their financial debts to U.S. At this time, the U.S. was the richest country in the world

Changes in production Henry Ford built the first assembly line The division of labor has a worker or group of workers focus on one task within a big project

The effects of production changes… Ford spent less money making cars and charged lower prices Ford paid his workers more Lower prices for cars + higher wages = more people buying cars Now, other companies mass produced their items too. In order to make MORE stuff, companies hired MORE workers More jobs + good pay= MORE items being bought for the first time…EVER

aving ……. People put their $ into savings accounts in banks Banks loan $ to businesses so businesses can improve

…and Investing People invest in banks and banks invest in businesses to make more $. Americans invested in stocks or a share of ownership in the company. Stocks are a certain price. When the company makes $, the value of stocks goes up. Stockholders are people that own stocks. Stocks are bought and sold at the stock market

Government in the 1920s The U.S. elected 3 presidents in the 1920s: Warren G. Harding, Calvin Coolidge and Herbert Hoover The Presidents believed in: Cutting taxes. Not as much involvement from the government to change the economy. Government to act like a business. Workers were the source of America’s prosperity and economic growth.