1. 1920’s Stock Market Example & Project

2. How does the stock market work? You buy 100 shares of stock of x $5.00 per share How much money have you invested? Scenario #1 stock increases to $20 per share How much are your 100 shares of stock now worth? How much profit have you made?

3. How does the stock market work? You buy 100 shares of stock of x $5.00 per share How much money have you invested? Scenario #2 stock decreases to $1 per share How much are your 100 shares of stock now worth? How much money have you lost?

4. Stocks Surge Buying on Margin

5. Buying Stocks on Margin: Scenario A investor stock broker Hello, sir. I would like to purchase 100 shares of stock in the Ford Motor Company. How much is it going to cost me?

6. Buying Stocks on Margin: Scenario A investor stock broker Well, Ford stock costs $10 per share. You want to buy 100 shares? Figure it out.

7. Buying Stocks on Margin: Scenario A investor stock broker 100 shares x $10 per share I only have $100. I can’t afford 100 shares.

8. Buying Stocks on Margin: Scenario A investor stock broker No, problem! Just give me $100 and you can owe me the rest!

9. Buying Stocks on Margin: Scenario A investor stock broker How much would that be? Let me think… $1,000 worth of stock - $100 paid

10. Buying Stocks on Margin: Scenario A investor stock broker Six months later, Ford stock doubles to $20 per share. My 100 shares are now worth... 100 shares x $20 per share

11. Buying Stocks on Margin: Scenario A investor stock broker That’s great! Now pay me the $900 you owe me!

12. Buying Stocks on Margin: Scenario A investor Now let’s figure out how much money I made! $2,000 net worth - $900 owed - $100 initial investment

13. Buying Stocks on Margin: Scenario B investor stock broker Six months later, Ford stock decreases to $1 per share. My 100 shares are now worth... 100 shares x $1 per share

14. Buying Stocks on Margin: Scenario A investor stock broker Too bad! You still owe me… (How Much?)

15. * Unquestioned faith in the bull market helped lead to the Great Depression!Great Depression Some people began to buy stocks on margin, which is similar to installment buying.

16. 1920’s Cultural Components

17. Building America: “Boom” -Impact of oil on the economy. -Henry Ford’s Assembly Line -Water is needed to expand in California. [Hollywoodland] -Racial tensions and riots in Chicago (Red Summer). -Prohibition & Rum-Running -Stock Car Racing & Muscle Cars. -Organized Crime (Al Capone)

18. Postwar Prosperity The cycle that created the business boom in the 1920's: –____________________________ led to –more efficient machines, which led to – higher production and wages, which led to –increased ____________________________, –which perpetuated more standardized mass production.

19. Postwar Prosperity Industries began to employ automated machinery and "____________________" to increase efficiency. The reorganization of work to maximize production resulted in more spare time and disposable income for average workers. Scientific management practices also led to a decline in the importance of skill and craftsmanship in favor of discipline and subordination.

20. “___________” / Scientific Management EFFICIENCYPRODUCTIVITY Frederick Taylor $$$ WAGES $$$ Welfare Capitalism Henry Ford “INVENTED” PERFECTED $5 / 8 hr. day

21. ____________ Model T “…Any color as long as it’s BLACK.”

22. 1908 1912

23. 1915 1924 1929 – 1 in 5 Americans

24. Impact on other Industries ________ (roads and bridges) (roads and bridges) ______ _ ______ Glass Paint ___ _________ (Growth of Suburbs)

25. OTHER Related Factors Behind 1920’s ECONOMIC BOOM Advertising

27. Installment Plans

28. Mass Culture: The Movies Although it was not the first film to incorporate an element of sound, the 1927 Warner Brothers film The _______________is widely credited with heralding in the age of ”________" and the end of the silent film era. The star Al Jolson appears in blackface in the film.

29. Mass Culture: Radio After war-time restrictions on civilian radio use were lifted, amateurs began experimenting with broadcasting. After years of limited broadcasts by amateurs and experimental stations, large corporations such as AT&T, Westinghouse and GE began to recognize the profit potential in radio. As the popularity of radio expanded, advertisers began sponsoring radio shows to appeal to consumers. By the end of the decade, __% _________________.

30. Literature and Poetry in the Jazz Age: The _______ ________ In the wake of the black exodus from the South, known as the Great Migration, the Harlem section of ____________became home to a number of African American intellectuals, artists, and writers. The seminal magazine feature "Harlem: _______for the New Negro" in Survey Graphic summarized the cultural phenomena this way: "If The Survey reads the signs aright, such a dramatic flowering of a new racespirit is taking place close at home among American Negroes, and the stage of that new episode is Harlem."

31. Literature and Poetry in the Jazz Age: The Harlem Renaissance “ Epilogue” by Langston Hughes I, too, sing America. I am the darker brother. They send me to eat in the kitchen When company comes, But I laugh, And eat well, And grow strong. Tomorrow, I'll sit at the table When company comes. Nobody'll dare Say to me, "Eat in the kitchen," Then. Besides, They'll see how beautiful I am And be ashamed,-- I, too, am America. Langston Hughes

32. Literature and Poetry in the Jazz Age: __________ F. Scott Fitzgerald often wrote critically about the illusions of wealth and fame, while at the same time partaking in the excesses of celebrity and striving for immortality in literature. Fitzgerald succumbed to alcoholism and his wife to mental illness after years behind the facade of glamour and celebrity. Ernest Hemmingway’s dense, understated writing style became a model for generations of writers. He wrote for "the lost generation," of young __________________.

33. The New Woman and the New Morality The image of the ______and the "new woman," who bobbed her hair, _______, danced to jazz music, and ________is synonymous with the 1920's. The emerging advertising industry and mass media promoted more sexualized images of women, thus, giving license for young women to shed some of the old sexual mores that were perceived as "Victorian." Actress Louise Brooks, an icon of flapper glamour.

34. The New Woman and the New Morality Changes in the feminine ideal: The well-bred Gibson girl [left] of the turn of the century and the decidedly more dangerous flapper [right] of the Roaring 20’s.

35. The New Woman and the New Morality In 1920, the 19th Amendment gave women the right to vote. The notable birth control activist ____________campaigned across the country to educate women about _______, remove the social stigma attached to contraceptives, and make safe birth control ______________. Sanger began her campaign for birth control after spending years as a nurse in poor communities.

36. Religious Fundamentalism Nostalgia for the past in reaction changing social mores characterized the growing influence of religious fundamentalism in the Jazz Age. ______________struggled to maintain their beliefs and the beliefs of their children in the face of the culture of _______, changing _______roles, the teaching of ______, and the influence of ________. Fundamentalism centers on belief in the literal truth of the Bible and claims adherents in all denominations of Christianity. Former baseball player and famous revivalist Billy Sunday delivered dynamic and impassioned sermons nationwide.

37. Prohibition, "A Noble Experiment" Along with the social changes of the interwar era came reactions to those trends. Prohibition went into effect in January 1920 as a result of decades of campaigning by temperance groups, rural Protestants, and some progressives who felt that alcohol represented a scourge on family life and a catalyst to crime. Although _________ __________outlawed the sale, transport, and consumption of intoxicating beverages, many otherwise law-abiding Americans defied the regulations. The black market for alcohol was a boon for organized crime. Detroit police discover a clandestine still.

38. The _______Trial The Scopes Trial provides the most dramatic illustration of the cultural tension of the Jazz Age, pitting secularists and modernists against traditionalists and fundamentalists in a carnival atmosphere that was tailor-made for the tabloids and new mass media. The 1925 Scopes ”________" in Dayton, Tennessee was not a spontaneous occurrence. In response to legislation outlawing the teaching of evolution, the ACLU offered to finance the defense of any teacher willing to challenge the law. 25 year old biology teacher ____ ______agreed to participate after some urging by local townspeople. Hunter’s Civic Biology- the text Scopes’ students saw. Am. Civil Liberties Union

39. The Scopes Trial The trial was not about whether or not Scopes was guilty, nor was it about the $100 penalty he faced. Scopes’ agnostic lawyer Clarence Darrow wanted to appeal the case the to the Supreme Court and have the law declared unconstitutional. Populist and former presidential candidate ____________was motivated by a need to defend Christianity and the integrity of the fundamentalist cause. Although, as expected, Bryan won the legal case, Darrow triumphed in the court of public opinion. Clarence Darrow (left) William Jennings Bryan (right)

41. 1920’s Politics & Economy A REPUBLICAN DECADE Warren Harding Calvin Coolidge Herbert Hoover

42. A REPUBLICAN DECADE 1919 - STRIKES - (app. 3,600) POLICE STEEL COAL

43. A REPUBLICAN DECADE THE RED SCARE 1917 – Russian Revolution

45. A REPUBLICAN DECADE THE RED SCARE A. Mitchell Palmer Sacco & Vanzetti Palmer Raids

46. DOMESTIC POLICY ISOLATIONISM NATIVISM PatriotismJobs ReligionRed Scare Urban Conditions 1921 - Emergency Quota Act 3% of 1910 Pop. 1924 - Johnson-Reed Act / National Origins Act 2% of 1890 Pop.

50. 1920 Presidential Election “RETURN TO NORMALCY” James Cox Warren Harding

51. FOREIGN POLICY 1921 - Washington Naval Conference Britain 5 United States 5 Japan 3 France 1.67 Italy 1.67 Effort @ DISARMAMENT 1922 - Fordney-McCumber Tariff Protectionist & Isolationist Policy

52. SCANDALS “OHIO GANG” Albert B. Fall 1923 Calvin Coolidge becomes President

53. 1924 Presidential Election Calvin Coolidge John W. Davis Robert La Follette Progressive Party “Keep COOL with COOLIDGE” Anti- Big Business AFL & Socialists

54. FOREIGN POLICY Continued Tariff Policy 1924 - DAWES Plan 1928 - KELLOGG-BRIAND PACT Frank Kellogg Aristide Briand Charles Dawes Formal Renunciation of WAR Joined by app. 60 nations RUHR Crisis of 1923 Oct. 3, 2010

55. DOMESTIC POLICY “The Chief Business of the American People is Business” Supported Wave of Prosperity CONSUMERISM Top 200 Companies: 1919 - $43 Billion 1929 - $81 Billion Per Capita Income: 1922 - $672 1929 - $857

56. Factors Behind 1920’s ECONOMIC BOOM Government Policy PRO-Business Andrew Mellon Herbert Hoover WWI EUROPE in Ruins

57. 1928 Presidential Election Herbert Hoover Alfred Smith Continued to Ride Wave of Prosperity

58. Problems with Prosperity Uneven Prosperity 1929:0.1% pop. - $100,000 or More 34% of Savings 71% pop.- less than $2,500 80% -NO SAVINGS

59. Personal Debt Supply and Demand

60. Speculation in the Stock Market John Raskob “Everybody Ought to be RICH!” BULL Market Market Value of Stocks: 1925 - $27 Billion 1928 - $38 Billion 1929 - $87 Billion