1. Unit 9: From Boom to Bust

2. Vocabulary
Supply and Demand: the ratio of the availability of goods to the demand for consumers to buy them
Consumerism: a culture of purchasing goods at a rate like never before (commercialism/materialism)
Overproduction: producing too many goods when demand is down
Stock: owning a piece of a company (companies sell stocks to use people’s money to run their business; business is good, stock value goes up; business is bad, stock value goes down)
Credit: buy now, pay later
Installment buying: pay in smaller sums over a period of time
On-margin: buying stocks using credit

3. Setting the Stage: World War I
US joined WWI in 1917
War time production called for women to join the workforce as men went off to fight

4. ECONOMY of the 1920s

5. Part 1: BOOM! World War I: war production = huge economic growth
US was only major country able to export goods during the war
Jobs were created in weapons factories
Middle class is created with this boom in jobs and money
After the war: US had no physical damage done so not a big war debt!

6. Part 2: Consumerism
We are going to look at 7 advertisements from actual newspapers, magazines, and movies
Think about these questions:
1. What items are being sold?
2. Who is the target audience?
3. What were some of the phrases used to sell the item? What advertising language was used?

7. Refrigerator
Flash Hands

8. Key Elements
Targeting: WOMEN- most are home appliances Advertising Method: Does washing make you tired? Housework made easier. Money down and it’s yours! Encourages installment buying

9. Factory Production What’s new?
Ford’s Model T is mass produced and affordable for the average Joe
Home appliances have been invented now that electricity is available in the homes
Stoves, refrigerators, radios, washing machines
Women returned to the homes when soldiers came back from war

10. Consumer Culture People were moving to the suburbs
With affordable cars, you could live outside of the city and drive into work
People now had money
There were products to buy
The US went consumer-happy and starting spending that money!
Chain stores, Nation-wide advertising, catalog shopping
Living with “comforts” was becoming the norm

11. Part 3: The Stock Market With new inventions came new business
New businesses needed money so they went public- people could buy a share/stock in a company
With some companies experiencing great success and people getting rich, people speculated and bought BIG in the market (this is going to bite ‘em in the butt later)
Another BIG mistake- buying on margin- meaning they borrowed money from the bank to buy stocks
What does this all mean- I’m confused…
So basically there is no ACTUAL money here! People are borrowing from the banks, who are borrowing from their bankers…

12. Part 4: Farming
Housewives weren’t the only consumer group with shiny new products to buy
New farming equipment was available to help grow and harvest crops
They bought them with CREDIT
The agriculture sector began to overproduce their crops

13. Stock Market Simulation
You have $100
You HAVE to invest at least $50 in the market
You can put some into savings
Use the information sheet to decide what bank you want to put it in and WHY
Use the STOCK CHOICES DAY 1 to select the stocks you want to invest in and how many you want

15. Wrap up of economy War time production made the US’s economy go BOOM
Middle class created- they become consumers
New inventions- home appliances
Buying with CREDIT or in INSTALLMENTS (buy now, pay later or over time)
Stocks- buying ON MARGIN (borrowing money from banks)
Where do we go from here….

16. What was the culture of the 1920s like?
The Jazz Age
What was the culture of the 1920s like?

17. Celebrity Meet and Greet
Step 1: Read your mini-biography about this famous icon of the 1920s
Step 2: Answer the question- Why is this person important to the 1920s?
Step 3: Create a 6 Word Bio about your person and write it on the index card- use colors and pictures!
Step 4: Meet and greet- you will go around the room and meet other famous people of the 1920s. As you meet each person-
1. Write down their name
2. Write their 6 word bio beside it

18. Analyzing the Celebrities
As a group, look at the bios of the people you met
Based on the BIOS of the people, categorize the celebrities as you see fit
Create a chart with your categories and the people who fall into each one
What do you notice about these people? What can their fame tell us about the 1920s?

19. Stock Market Oh no! The Stock Market Crashed last night!
Let’s check how your stocks did today!
1. How much did you invest in each stock?
2. Did the stock go up or down? What is the new value?
3. How much did you gain or lose?
4. Banks closed…if you had money in a bank that closed that money is GONE.

20. Why did banks close?
Remember, people were buying their stocks ON MARGIN- borrowing from the bank.
The money in the bank was the PEOPLE’S
People made a RUN on the banks to get their money out before it was gone…some people were too late and lost their life savings 

21. EQ: What were other aspects of the 1920s culture?
A look at NATIVISM and BIGOTRY in the United States after World War I.
The Harlem Renaissance

22. The Twenties Times
Read each article about “fears” of the Americans during the 1920s
What types of stereotypes existed about immigrants?
What laws did Americans pass?
How did Americans show NATIVISM and BIGOTRY during the 1920s?

23. 1920s vs. 2000s
Immigration has been a hot topic in the US for the last 100 years
What issues exist about immigration in today’s America?
What are politicians and the government doing about immigration?
Do you think there should be limitations? Why?

24. Harlem Renaissance

25. 1920s Packet
As a review of the 1920s, complete the packet about the different on-goings in the United States
For each paragraph, complete the box to the right
You can underline and/or highlight in the paragraph to help you answer the questions.