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Economy and Policies of the 1920s

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Presentation on theme: "Economy and Policies of the 1920s"— Presentation transcript:

1 Economy and Policies of the 1920s

2 The Roaring Twenties                 ( )

3 Why were the 1920’s so Prosperous?…..
Post WWI, (return to isolation) Americans are ready to make money and enjoy themselves!!! Why were the 1920’s so Prosperous?….. Prosperous (definition) – Having success, flourishing, being well off

4 Automobile Industry Henry Ford introduced methods and ideas that revolutionized production, wages, working conditions and daily life.

5 Mass Production- The Assembly Line
Definition- The rapid manufacture of large numbers of identical products. Ford introduced the Model T- a reliable and affordable car for $850 (1908) Assembly Lines- each member contributed to the construction of the car. 12 hours to 90 minutes 1927- $290 dollars

6 Advertising Advertising focused more on desires and fears than necessities. How could this impact life?

7 Credit- Installment Buying
People who did not have cash ready could buy on credit. Installment Buying- pay a small down payment and pay the rest in small monthly payments. What does this allow Americans to do?

8 Bull Market Bull Market- Period of rising stock prices
More and more Americans put their money into stocks Desire to strike rich caused buyers to ignore financial risks Buying on margin- a form of credit Paid a small down payment and paid a broker the rest of the loan Was not a problem if stocks continued to rise

9 Unequal Prosperity Cities- Millions of people flock to the cities
Immigrants, Mexican Americans, African Americans Suburbs- Mass transportation allowed the cities to grow outward Drained people and resources out of the city Farmers and Industry Workers- Wages rose slowly and crop prices fell causing these Americans to see the “prosperous 1920s” differently.

10 Dawes Plan 1924 the U.S. makes loans to Germany to pay off their WWI reparations to Britain and France. This allowed Britain and France to repay their debt to the U.S. This all ended with the Stock Market Crash in 1929.

11 How do these policies impact Business?

12 How do these policies impact the Consumer?

13 Economic Changes during the 1920s
Republican presidents are Pro-business and follow a laissez-faire policy Many people experience economic prosperity An Economic Boom!!! Did everyone experience economic prosperity? Who DID NOT? •Farmers •Native Americans •African Americans Let's talk about each group a little more...

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