1. 1920s: Decade of Prosperity
After WWI: Transition from war to peacetime economy.
goods scarce >> prices up >> cost of living up
impact: workers lose jobs, paychecks don’t keep pace w/prices
1919: 3,600 strikes wages behind cost of living
strikers: accused of being anti-American, Bolsheviks

2. By 1921 Economy Booming WHY:
strongest economic power after World War I
Europe limited competition & tariffs in place
increased efficiency of production
Technology, electricity, assembly line
climb in real wages & decline in average employee's work hours
 boom in consumer goods; buy now – pay later
New industries, esp. car
1927: 4 out 5 cars in the world owned by Americans
oligopolies up (a few companies control an industry); unions decline
stock market & “easy money”

3. Glorification of Business
Bestseller by Bruce Barton, The Man Nobody Knows, ( )
Jesus as first modern business leader
3 most admired men in history:
Jesus, Napoleon, & Ford
President Coolidge: “The man who builds a factory builds a temple – the man who works there worships there.”

4. Laissez-faire Capitalism
Role of gov’t
Tax cuts, deregulation, conservative Supreme Court
Harding and Coolidge Administrations
Gov’t and business intertwined
3 examples in Ques. 2 of Odyssey Decade of Prosperity hwk

5. Industry’s Labor Policies (see Odyssey Decade of Prosperity hwk)
American Plan?
open-shop
Yellow-dog contract
Welfare capitalism?
Example from hwk?
Impact on unions?

6. FOR EVERYONE??? Decade of Prosperity
Richest 1% controlled 59% of the wealth in 1923
Tax cuts favored the wealthy
Over 65% had incomes below $2,000 (i.e., limited ability to buy cars and other consumer goods)