From Boom to Bust: The 1920’s

A look at a decade full of Elephants.

Section Objectives – The Boom

1. Describe key features of the Republican administrations of the 1920’s.

2. Describe how the growth of a consumer economy changed American life.

A Decade of Extremes – Early 20’s

By 1920, Americans were glad to wave goodbye to WWI.

War weary Americans began the 1920’s hoping for a sense of “normalcy”.

I’m not

A Decade of Extremes – Early 20’s

Americans began to feel good because businesses were booming with new innovations for everyday life.

The Roaring 20’s was a fitting description of early 20’s life.

*March of the Elephants*

The 1920’s also has a nickname called the Republican Decade.

President Harding

Warren Harding is going to be the first in a string of Republican presidents.

Harding’s goal was to make the U.S. strong by isolating it from the rest of the world.

Follow me boys!!

*President Harding*

Harding’s foreign policy became known as isolationism.

In order to make the U.S. and world safer, he asks nations to agree to disarmament, or a program of voluntarily giving up weapons.

Keeping Cool with Coolidge

Calvin Coolidge becomes president after Harding’s untimely death. (remember the curse?)

Coolidge brings back a sense of laissez-faire like never before. “The Business of the American people is Business”.

The Republican presidents push for rapid economic growth by loosening restrictions on business.

Keeping Cool with Coolidge…or Gifford

The Coolidge administration is best known for keeping out of government.

In the election of 1928, Republicans nominate Herbert Hoover who will be the last of the string of Republican presidents.

Hats off to Gifford, he’s mega cool!But my slogan is

better.

Big Business = Big Money

Republican Presidents help Business

Big Business creates new/more goods

Fill in this spot with the answer+

The 1920’s economy was thriving.

Big Business = Big Money

Republican Presidents help Business

Big Business creates new/more goods

Consumer Economy: economy based upon large volume of consumer buying

+

The 1920’s economy was thriving.

*The Evil Credit Monster Rears its Ugly Head*

For the first time in history, Americans begin to buy many of the new consumer goods on credit and start to use Installment plans

Credit Monster and Sidekick Interest

I

Leaders of this new era of Business

Two of the most famous businesses to grow during the prosperity of the 1920’s were General Electric and Ford Motor Company.

These two companies offered household goods and automobiles at prices the everyday worker could afford or afford on credit.

The top 200 industries doubled in value in the 1920’s, but their prosperity was built upon a faulty foundation that will tumble by 1929.

How Does GE Make Moola?

Welcome to the Wonderful World of the Stock Market

Investing, Gambling or both?

What is Stock?

Let’s say Giff Co. sells stock.

They have 100 shares of stock to sell.

You buy 10 shares….you now control 10% of the voting rights in that company.

What is stock?

It’s ownership in a company!!!!!! The more stock you buy, the more of a

company you control.

How much GE stock is there?

How Much is a Stock Worth?

If there is a high demand….price goes UP.

If there is low demand……price goes DOWN.

Look up a stock quote!