1. A Growing Economy
Chapter 10, Lesson 1

2. Essential Question
What were some factors that helped improve the economy in the 1920s?
Hypothesis:

3. Vocabulary
Boom
Assembly line
Division of labor
Stock
Stock market

4. Changes in Power U.S. elected new president Warren G. Harding in 1920
Warren G. Harding promised “Return to Normalcy”

5. Changes in Economy Economic boom: a period of fast economic growth
International trade increased during and after the war
When the U.S. won the war, many European countries had to repay their financial debts to U.S.
At this time, the U.S. was the richest country in the world

6. Changes in production Henry Ford built the first assembly line
The division of labor has a worker or group of workers focus on one task within a big project

7. The effects of production changes…
Ford spent less money making cars and charged lower prices
Ford paid his workers more
Lower prices for cars + higher wages = more people buying cars
Now, other companies mass produced their items too.
In order to make MORE stuff, companies hired MORE workers
More jobs + good pay= MORE items being bought for the first time…EVER

8. aving ……. People put their $ into savings accounts in banks
Banks loan $ to businesses so businesses can improve

9. …and Investing
People invest in banks and banks invest in businesses to make more $.
Americans invested in stocks or a share of ownership in the company.
Stocks are a certain price. When the company makes $, the value of stocks goes up. Stockholders are people that own stocks.
Stocks are bought and sold at the stock market

10. Government in the 1920s
The U.S. elected 3 presidents in the 1920s: Warren G. Harding, Calvin Coolidge and Herbert Hoover
The Presidents believed in:
Cutting taxes.
Not as much involvement from the government to change the economy.
Government to act like a business.
Workers were the source of America’s prosperity and economic growth.