1. The Roaring ‘20’s -Economic Boom

2. A Consumer Economy Wages rose More millionaires Consumer Economy
an economy that depends on a large amount of buying by individuals

3. Buying on Credit Installment plan Encourages people to:
a system that lets customers make partial payments at set intervals over a period of time
Encourages people to:
buy products NOW, pay LATER
Interest charges provide companies with a way to make money

4. American Capitalism Gross National Product
During the 1920’s the economy was booming.
The Gross National Product, or GNP, rose a result of the rise in annual production of goods
The more the nation produces, the more money they make!

5. American Capitalism (Cont’d)
One form of capitalism applied the idea that employers should raise workers wages and provide benefits
Welfare Capitalism
Stems from the Social Welfare Reform of the Progressive Era
Raise the minimum standard of living

6. Economic Systems Communism
A political system in which the government has total control over the private lives of its citizens
In a communist system, the individual is not important, the government is!
The RED SCARE in America is the fear of the spread of communism and total government control

7. Foreign Policy
United States wanted to practice Isolationism after WWI.
Prevent involvement in wars
Disarmament would require all nations involved to voluntarily give up their weapons.
Is this possible?

8. Foreign Policy (Cont’d)
Kellogg-Briand Pact
Fifteen nations pledged to avoid using the threat of war in dealing with each other.
Are Iran and Israel / US practicing this policy today?
Diplomatic relations, sending an official from the government to talk with other nations, was seen as a more logical way to solve problems.
Did it work?

9. The Stock Market Speculation Buying on Margin
A risky way to invest in companies in hopes of making a large amount of money
Buying on Margin
Allowing investors to purchase stocks for a reduced price
You would then borrow the rest of the money, but owe more people or companies
When the stock market crashes, those loans cannot be paid back

10. Quiz Time!!! 1
A political system in which the government has total control over the private lives of its citizens
Welfare Capitalism
Communism
Isolationism

11. 2
Making high risk investments in hopes of making a large amount of money is known as:
Installment Plan
Buying on Margin
Speculation

12. 3
An economy that depends on citizens spending money at local and larger businesses is called:
Consumer Economy
Free Market Economics
Capitalism

13. 4
The practice of allowing investors to purchase stocks for a lesser price, which requires the buyer to purchase other stocks or borrow money to pay the rest is called:
Buying on Credit
Buying on Margin
Speculation

14. 5
The practice of not entering political alliances with foreign nations is known as:
Disarmament
Kellogg-Briand Pact
Isolationism

15. BONUS The Stock Market crashed on October 29, 1929.
What was the nickname for that day?