1. The Booming Economy of the 1920s
Government and Business working together

2. 1920s Presidential Campaign Slogans
Warren Harding ( ) “Less government in business, more business in government.”
Calvin Coolidge ( ) “The business of America is business.”
Herbert Hoover ( ) “Change the attitude of government relations with business from that of interference to that of cooperation.”
So what did they do?

3. Problem – read page 421 of your text

4. How do you know if an economy is health?
What factors do you look at?

5. Some economic statistics of the 1920s
4% unemployment in 1929.
Average annual income increase 35%.
Real wages increase 30%.
GNP nearly doubled.
Worker productivity increase 50%.
Corporate profits increased 38%.
By 1929, 200 companies controlled 50% of the wealth in America.
A&P Grocery – 5,000 stores in 1922, 17,500 in 1929.
By 1929, 50% of American homes owned cars, 80% owned electric irons, 40% owned vacuum cleaners, and 25% owned washing machines.
What does this tell you?

6. The economic impact of one product
Automobile