1. Exit Ticket
Louis Armstrong, Langston Hughes and Zora Neale Hurston are all associated with which of the following movements?
The Niagara Movement
The Lost Generation
The NAACP
The Harlem Renaissance

2. Exit Ticket
2) Which statement best describes how women’s roles changed in the 1920s?
Traditional child-rearing roles became less important
Many women left the workforce
Public behaviors of women became freer
Many women gained managerial jobs

3. Exit Ticket
3) What was the difference between traditionalists and modernists? State the difference and then explain an event that shows this difference.

4. Objective 9.01 and 9.02
I. Economic Boom

5. A. President Harding Policy
Economic policy set by new President Warren Harding
Very popular, campaign on “return to normalcy” in 1920
Supply-side economics – economy policy to reduce taxes
Idea is that lower taxes means people spend and invest more money, resulting in economic growth.
Harding reduced income tax dramatically.
Business-friendly: tried to develop new industries to stimulate the economy

6. A. President Harding Policy
Teapot Dome Scandal –
Harding administration accepted bribes before leasing out oil-rich land to private company
Severely damaged Harding’s good reputation

7. B. Coolidge Policy
Calvin Coolidge becomes president after Harding’s death
Believed in laissez-faire economics
No government involvement, the “market” will solve any of its problems
Result: major economic growth

8. States and Capitals Quiz Friday
New States:
Kentucky, Ohio, Maryland, Delaware, Pennsylvania, New York, New Jersey

9. Do Now
What do we mean when we say that the economy is in a depression or recession? How do you think we get to that point?
What does that mean for regular Americans?

10. C. Stock Market Growth
People buy or sell “stocks” or “shares” in different companies.
Owners of shares are part owners of that company- they make or lose money based on company performance.
Stocks are “bets” that the company is going to do well in the future.
Everyone saw the stock market in the early 1920’s as being very good and wanted to invest.

11. C. Stock Market Growth
People started buying stocks “on margin” – taking out a loan to buy a stock.
Investor pays 10% of price today and promises to pay the other 90% later on.
Speculation: buying high-risk stocks (less likely to make money) to get big returns on investment.
Why did people make these risky investments?

12. D. Consumer Economy Assembly line becomes widespread in industries.
Products are cheaper to produce, so they are cheaper to buy.
Result: People bought lots of new things like cars and appliances.
Used installment plans: monthly payments on big items like radios and cars.
Anyone could get these plans regardless of how much money you had – “easy credit”
Why might installment plans be problematic?

13. Guided Practice
Explain one of stock market or consumer strategies discussed in class through a skit.
Three you can choose from:

14. Objective 9.01 and 9.02
II. Signs of Trouble

15. A. Overproduction
Mechanization of farming and factories produced too many goods
Agricultural product prices plummet
No one can afford to buy all of the factory goods
Coolidge didn’t believe in direct relief: no government assistance for people losing money
Result: Farmers into deep poverty, warehouses filled with unsold goods

16. B. Income Inequality
Rich get richer, and everyone else grows just a little bit
Majority of people don’t have money to pay for new goods, have only been able to buy them through easy credit/installment plans.

17. C. Stock Market Begins to Dip
Stock prices started falling – problems start to hit with people who bought stocks “on margin”.
When is the best time to sell in this market?
Why would someone who bought stock “on margin” be quicker to sell than others?
Month
Stock Market Value
April 1929
319
May 1929
297
June 1929
334
July 1929
348
August 1929
380
September 1929
343
October 1929 ?

18. Objective 9.01, 9.02
III. Economic Bust

19. A. “Black Tuesday” October 29, 1929
Stock prices are dropping, so companies issue a “margin call”
Everyone who bought stocks “on margin” have to pay back the 90% they borrowed
Investors panic and everyone sells their stock
Effect: Prices plummet
Beginning of the Great Depression

20. B. Bank Runs Banks never hold all of the money you put in it
Use that money to make loans, invest.
“Black Tuesday” effect:
People couldn’t repay their loans for stocks.
Banks lost the money they invested in the stock market.
Result: Banks lost a lot of money, some lose so much they start closing
If bank closes, everyone who put money in loses all of their money

21. B. Bank Runs
People hear about banks closing, rush to banks to withdraw their money.
Effect: Many more banks close, others barely survive.
Effect: Didn’t lend money to many people anymore, so those needing money couldn’t get it – economy gets worse.

22. C. Hoover’s Response
President Herbert Hoover: elected right before the market crashed.
Response to the economic crisis: laissez- faire approach.
What does that mean he did?

23. D. Smoot-Hawley Tariff Act (1930)
New tariff on imported goods
Goal: Make American people buy more American-made goods and boost the economy
Impact: made the economy worse – foreign countries responded by putting tariffs on American products, so the U.S. exported less.

24. Independent Practice
Imagine you are a person (investor, farmer, factory owner) living in the Roaring Twenties and have tried to “get rick quick.” Tell me what strategies you have been using to do so.
As we’re getting into 1929, what is starting to happen to you? What do you think might happen in the future?
Your response should be 6-8 sentences.

25. Exit Ticket
Which of the following best describes the principle of taking out a loan to buy a stock?
Buying stock on margin
Overproducing interest
Creating a “run” on a bank
Buying on the installment plan

26. Exit Ticket
2) Which of the following was an effect of “Black Tuesday”?
Many people lost everything as stock prices fell and banks closed.
People rushed to put their money in banks rather than the stock market.
President Hoover’s popularity grew.
People paid off their debts and started investing in more bonds.

27. Exit Ticket
3) Why did the booming economy of the 1920’s bust? Your answer should include at least two reasons.