1. EQ: What were the new methods of production during the 1920’s?
Chapter 10 Lesson 1
EQ: What were the new methods of production during the 1920’s?
EQ: What were the attitudes of the government leaders during the 1920’s?

2. Changes in Production
After WWI ended, people turned their attention away from world problems. They elected a popular new president, Warren G. Harding, in 1920.
The economy went through a boom after WWI.
A boom is a period of fast economic growth.
Their was an increase in economic trade. During an after the war.
Most European countries had borrowed money from the US during the war. When the war ended, their repayments made the US one of the richest counties.

3. The Automobile Industry
Henry Ford
Mass production
Using machines to make many products at once.
Assembly lines
An assembly line is a long line of workers and equipment. Workers complete one job. This way of organizing work is called division of labor. Cars could now be mass produced and were inexpensive.
Low prices and higher wages meant more people could buy Ford’s cars.

4. The Automobile Industry
Other industries copied Fords methods of production.
Mass production
Sewing machines
Refrigerators
Industries grew an hired more workers.
These workers used the money they earned to buy *consumer goods.
Consumer goods are goods made to be sold to the public.
For the first time, people owned cars, vacuums, cleaners, washing machines, and toasters.

5. Saving and Investing
People were looking for places to put their money.
Saving accounts
Banks in the 1920’s, as today, loaned out the money in saving accounts. Businesses borrowed this money to improve their companies.

6. Saving and Investing Investments (pg. 324)
To invest means to use savings in the hope of earning more money in the future.
Stocks
A stock is a share of ownership in a company.
Investors buy stocks at a certain price. When a company earns money, the value of its stock usually increases.
The people who own stocks, also known as stockholders, can sell it at a higher price to earn money.
When the value of a stock falls, however, the stockholder can lose money.
The place where stocks are bought and sold is called a stock market.

7. Government in the 1920’s 1920’s Presidents Warren G. Harding
Calvin Coolidge
Herbert Hoover
These three leaders were similar
 Presidents
 Republican
 Each encouraged strong economic growth in the US.

8. Government in the 1920’s Calvin Coolidge
 Coolidge wanted the government to act like a business.
 Ex. He kept government spending low
He did this so the government would take in more money than it was spending.
 Cut taxes
He believed that if taxes were lower, people would have more money to save and invest.

9. Government in the 1920’s Herbert Hoover (1928)
 He believed that the government should not do too many things to change the economy.
 He believed that real economic growth came from the hard work of ordinary people.
People thought that this prosperity would last forever.

10. Lesson Summary The American Economy boomed during the 1920’s.
Mass production helped the economy grow.
Some Americans invested in the stock market during the 1920’s.

11. Show What You Know Time! 1. After WWI ended,
There was a boom in the US economy.
The US economy grew weaker.
Most people could not afford to buy homes
People did not want to spend money

12. Show What You Know Time!
2. Henry Ford’s factories used assembly lines and division of labor
To build homes.
To produce appliances like washing machines
To build cars.
To produce more stocks for investors.

13. Show What You Know Time!
3. Why did many Americans invest their money in the stock market?
They wanted to able to loan businesses money.
They thought they could sell their stock at a low prices and make a profit.
They thought they could sell their stock at a high prices and make a profit.
They wanted to finance a new war.

14. Show What You Know Time!
4. What did Warren Harding, Calvin Coolidge, and Herbert Hoover have in common?
They were all republicans
They were all presidents
They all wanted the US economy to grow stronger.
All of the above

15. Show What You Know Time!
5. Who thought the government should not do too much to make the economy strong? A. Henry Ford B. Calvin Coolidge C. Warren Harding D. Herbert Hoover