1. The Economy of the 1920s
Boom or Bust?

2. Golden 20s Gross National Product up by 40%
Corporations grew bigger and concluded mergers
Generally prosperous time period
Solid relationship between government and businesses

3. Automobile Boom Pervasive effect on all aspects of American Life
Prices low enough for many to buy
Assembly line and high wages for workers
Ripple effect:
Steel, Rubber, Glass, Gas, Highways, motels
Growth of suburbs

5. Farming/Agriculture Weak spot of the era
WWI: Gov’t told farmers to produce
Borrowed money to increase production
During war: Profits were high
After war: Prices dropped but huge debts remained
No gov’t help – large farm surplus
Mortgages become foreclosed
McNary-Haugen Bill: attempt to increase prices of farm products (Vetoed by Coolidge)
Depression hits farmers first

6. Consumer Debt, 1920–31
Stock Market Prices, 1921–32