1. The Roaring 20’s The Economy of the 1920’s

2. A Consumer Economy Defined as: One that depends on a large amount of spending by consumers Buying on Credit Installment Plans Electric Power Appliance surge Advertising Emotion/Celebrities Rise in Productivity ‘21-’29 GNP up 6% per year

3. Ford and the Automobile # of cars up 15 million in 20s The Model “T” First car made by Ford The Assembly Line “Democratize the Car” Did not invent, perfected 1915 = $390 per car All cars were black Vertical consolidation # of cars up 15 million in 20s The Model “T” First car made by Ford The Assembly Line “Democratize the Car” Did not invent, perfected 1915 = $390 per car All cars were black Vertical consolidation

4. A Complex Businessman Good and bad parts to Fords business style Good: $5-a-day pay rate Affordable cars Bad: Violence to fight unions English and Civics classes to “Americanize” workers

5. Industrial Growth Automobile spurs growth Garages, motels, gas, restaurants, glass, leather Republican laissez-faire policies Limited government regulation of business Small business do well too Aviation industry grows Automobile spurs growth Garages, motels, gas, restaurants, glass, leather Republican laissez-faire policies Limited government regulation of business Small business do well too Aviation industry grows

6. Bypassed by the Boom Most Americans enjoy better standard of living, but some struggle Unskilled laborers African-Americans Farm economy down WWI demanded lots of food Borrowed money for equipment Surplus after war

7. Economy in the late 1920’s Economy appears healthy “Wonderful Prosperity” Stock market soared 1929= $87 billion Wages had risen “Everybody Ought to be Rich” Unusually high confidence Risky investments Welfare Capitalism Used to avoid strikes and keep production high Higher wages, paid vacation, etc. Economy appears healthy “Wonderful Prosperity” Stock market soared 1929= $87 billion Wages had risen “Everybody Ought to be Rich” Unusually high confidence Risky investments Welfare Capitalism Used to avoid strikes and keep production high Higher wages, paid vacation, etc.

8. Economic Danger Signs Uneven Prosperity The rich got richer: 200 companies control 49% Personal Debt Credit spending believing investments would pay for them Playing the Stock Market Speculation: high risk investing Buying on Margin: Buy stock w/ borrowed money Too Many Goods, too Little Demand Trouble for Farmers and Workers Farmers couldn’t pay debts: 6,000 banks close Uneven Prosperity The rich got richer: 200 companies control 49% Personal Debt Credit spending believing investments would pay for them Playing the Stock Market Speculation: high risk investing Buying on Margin: Buy stock w/ borrowed money Too Many Goods, too Little Demand Trouble for Farmers and Workers Farmers couldn’t pay debts: 6,000 banks close