Your Task for the Day: Poetry Your Poem Must Include:  What was good about the economy in the 1920s?  How did consumers behave?  Effects of the automobile.  What are some “red flags” - areas of concern?  What was good about the economy in the 1920s?  How did consumers behave?  Effects of the automobile.  What are some “red flags” - areas of concern?

A Booming Economy But Watch Out for the Hidden Issues!

Gross National Product (GNP)  Total value of all goods and services in a country

GNP in the 1920s GNP in Billions of $

Technology Advances  As electricity replaces steam, production costs drop  Scientific Management - People began to study efficiency (Ford’s assembly line)  Mass Production - made identical products in larger numbers  Companies produce more and more, faster and faster  As electricity replaces steam, production costs drop  Scientific Management - People began to study efficiency (Ford’s assembly line)  Mass Production - made identical products in larger numbers  Companies produce more and more, faster and faster

Consumers Go Shopping  By 1920, 60% of homes have electricity  People buy electrical goods  Durable goods - products expected to last a number of years (cars, refrigerators, stoves, vacuums)  Advertising - pushes more products  Economy doing well, so people buy, buy, buy!  By 1920, 60% of homes have electricity  People buy electrical goods  Durable goods - products expected to last a number of years (cars, refrigerators, stoves, vacuums)  Advertising - pushes more products  Economy doing well, so people buy, buy, buy!

Buying on Credit  Stores look for ways to sell more products  Purchasing on Credit - buy an item and pay in installments with interest  Consumers go into debt, but aren’t concerned - think the economy will always be good!  Pretty soon, everyone has all the durable goods - who do companies sell to then?  Stores look for ways to sell more products  Purchasing on Credit - buy an item and pay in installments with interest  Consumers go into debt, but aren’t concerned - think the economy will always be good!  Pretty soon, everyone has all the durable goods - who do companies sell to then?

Automobile Age  4 million people work in auto industry or related fields  Detroit is the auto capital of the world - Ford, Chevy are there  $5 day - Ford sees assembly line burning up men, offers high rates of pay  Autos effect economy - more cars -> more roads ->more Travels ->more hotels -> more restaurants -> more furniture -> etc.  More demand for gas, oil, rubber, steel  Suburbs - cars change where/how people live  4 million people work in auto industry or related fields  Detroit is the auto capital of the world - Ford, Chevy are there  $5 day - Ford sees assembly line burning up men, offers high rates of pay  Autos effect economy - more cars -> more roads ->more Travels ->more hotels -> more restaurants -> more furniture -> etc.  More demand for gas, oil, rubber, steel  Suburbs - cars change where/how people live

“What About Me?”  Many groups are left behind in the 20s  Farmers suffer from lack of demand after WWI  RRs and coal miners lose business to cars  Man-made materials replaces cotton/wool  Laborer’s wages don’t increase at the same rate as inflation  By 1929, 75% of families have an income below $2500 ($31,500 in today’s money - the accepted level for a comfortable life)  Many groups are left behind in the 20s  Farmers suffer from lack of demand after WWI  RRs and coal miners lose business to cars  Man-made materials replaces cotton/wool  Laborer’s wages don’t increase at the same rate as inflation  By 1929, 75% of families have an income below $2500 ($31,500 in today’s money - the accepted level for a comfortable life)

Your Poem Must Include:  What was good about the economy in the 1920s?  How did consumers behave?  Effects of the automobile.  What are some “red flags” - areas of concern?  What was good about the economy in the 1920s?  How did consumers behave?  Effects of the automobile.  What are some “red flags” - areas of concern?