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Unit 4: Boom Times to Hard Times United States History, 1877- Present. Mr. Armstrong

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Unit 4: Boom Times to Hard Times . United States History, 1877-Present. Mr. Armstrong. Postwar Social Change. Chapter 13. Bellringer. EQT Study Questions. - PowerPoint PPT Presentation

TRANSCRIPT

Page 1: Unit 4: Boom Times to Hard Times

Unit 4: Boom Times to Hard Times

United States History, 1877-Present.

Mr. Armstrong

Page 2: Unit 4: Boom Times to Hard Times

Postwar Social ChangeChapter 13

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Bellringer• EQT Study Questions.

1. The American industrial growth of the late 1800’s was made possible by ________________ advances and financial investments. (Chapter 6, Section 1)

2. The _________________ and the ____________ were two technologies that revolutionized American communications in the late 1800’s. (Chapter 6, Section 1)

3. The Federal government contributed to the building of the _____________ railroad by awarding loans and land grants to private companies to build the railroad. (Chapter 6 Section 1)

4. During the late 1800’s, critics of powerful industrialists referred to them as “_______________________.” (Chapter 6, Section 2)

Page 4: Unit 4: Boom Times to Hard Times

Bellringer• EQT Study Questions.

1. The American industrial growth of the late 1800’s was made possible by Technological advances and financial investments. (Chapter 6, Section 1)

2. The telegraph and the telephone were two technologies that revolutionized American communications in the late 1800’s. (Chapter 6, Section 1)

3. The Federal government contributed to the building of the transcontinental railroad by awarding loans and land grants to private companies to build the railroad. (Chapter 6 Section 1)

4. During the late 1800’s, critics of powerful industrialists referred to them as “Robber Barons.” (Chapter 6, Section 2)

Page 5: Unit 4: Boom Times to Hard Times

Ch.13 Section 1: Society in the 1920’s

• Setting the Scene– Industrialization and Immigration turned

the United States into an urban nation.– The Great War accelerated those

changes – The Flapper came to symbolize those

changes.

Page 6: Unit 4: Boom Times to Hard Times

Women’s Changing Roles• The Flapper Image– Short Hair – “Cloche”– Heavy Makeup– Smoking – Drinking

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Women’s Changing Roles

• Some simply adopted the style and not the attitude of a flapper for convenience.

• Businesses remained prejudiced against women.

• Women could vote in all elections as of 1920.• Many politicians feared that they would vote

as a bloc.

Page 8: Unit 4: Boom Times to Hard Times

Women’s Changing Roles

• Early on, women did not exercise their right to vote for a number of reasons. (Read paragraph 2 on page 454 and find three reasons.)– Women who lived in rural areas or had children had

to make arrangements to go vote.– Women’s families discouraged them from voting.– Some were not comfortable voting.

Page 9: Unit 4: Boom Times to Hard Times

Women’s Changing Roles • Shepard-Towner Act of 1921- the first major federal welfare measure

concerned with women’s and children’s health.• Equal Rights Amendment was first proposed in 1923 and stated that

“Men and women shall have equal rights throughout the United States and every place subject to its jurisdiction.”

• Jeannette Rankin of Montana became the first women elected to the U.S. House of Representatives.

• Who were the first two female governors? (Read next to last paragraph on page 454.)– Miriam A. Ferguson (TX)– Nellie Tayloe Ross (WY)

Page 10: Unit 4: Boom Times to Hard Times

Americans on the Move• Demographics

– are the statistics that describe a population, such as data on race or income.

• In 1920 more people lived in urban areas than did in rural areas for the first time in American history.

• During the 1920’s 6 million people moved from rural areas into the cities.

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Americans on the Move• Effects of migration and urban prosperity

(Read paragraphs 2 and 3 on page 455).– Attendance in public high schools rose. – Rural and Urban America split.

• African Americans in the North. – Jim Crow Laws – New Job Opportunities

Page 12: Unit 4: Boom Times to Hard Times

Americans on the Move • After the Great War masses of refugees applied for entry into the

United States. Read the section titled “Other Migration” at the bottom of page 455, and answer these questions.

• What areas of the world did Congress act to limit immigration into the United States from?– Southern and Eastern Europe, China, and Japan.

• Employers turned to ___________ and __________ to fill low paying jobs. – Mexico and Canada

• Define the term barrio.– Spanish speaking neighborhood.

Page 13: Unit 4: Boom Times to Hard Times

Americans on the Move • Growth of Suburbs was aided by:– Trolleys– Buses– Automobile

• During the 1920’s the bus replaced the trolley in many areas.

Page 14: Unit 4: Boom Times to Hard Times

American Heroes • Charles Lindbergh- First man to fly non-stop

across the Atlantic Ocean.• Amelia Earhart- First women to fly non-stop

across the Atlantic Ocean.• Jim Thorpe- Olympic track star, Professional

Football Player, Native American. • George Herman “Babe” Ruth- The Sultan of Swat.

Page 15: Unit 4: Boom Times to Hard Times

Chapter 13 Section 2: Mass Media and the Jazz Age

Page 16: Unit 4: Boom Times to Hard Times

Bellringer• 1.Congress passed the ____________ Antitrust Act in 1890 to promote

fair industrial competition and growth.(Ch.6-2)• 2. Industrial Growth in the United States led to a concentration of

wealth in the hands of a few ________.(Ch.6-2) • 3. Unlike the Knights of Labor, the American Federation of Labor (AFL)

included in its membership only _________ workers. (Ch.6-4)• 4. Life for ______ , or people who farmed claims under the Homestead

Act, was difficult because they often had to struggle even for the necessities (Ch.7-3)

• 5. The combination of big business and new agricultural techniques in the West resulted in ______ farms. (Ch.7 -3)

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Bellringer• 1.Congress passed the Sherman Antitrust Act in 1890 to promote fair

industrial competition and growth.(Ch.6-2)• 2. Industrial Growth in the United States led to a concentration of

wealth in the hands of a few industrialists.(Ch.6-2) • 3. Unlike the Knights of Labor, the American Federation of Labor (AFL)

included in its membership only skilled workers. (Ch.6-4)• 4. Life for homesteaders, or people who farmed claims under the

Homestead Act, was difficult because they often had to struggle even for the necessities (Ch.7-3)

• 5. The combination of big business and new agricultural techniques in the West resulted in bonanza farms. (Ch.7 -3)

Page 18: Unit 4: Boom Times to Hard Times

The Mass Media• Mass Media- print, film, and broadcast

methods of communicating information to large numbers of people.

• Movies– Silent Films– Talkies

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The Mass Media • Newspapers and Magazines

– Read the paragraph with the heading “Newspapers and Magazines” and answer this question: What happened to the amount of newsprint in the U.S. between 1914 and 1927?• Newsprint roughly doubled!!

– Tabloid- is a compact newspaper that relies on large headlines, few words, and many pictures to tell a story.

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The Mass Media

• Radio– Italian physicist Guglielmo Marconi

invented a means of wireless communication using radio waves in 1896.

– The nations first commercial radio station was Pittsburgh’s KDKA.

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The Mass Media

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The Mass Media• Writing Question:

– How did the rise of Mass Media outlets such as movies, newspapers, magazines, and radio lead to a distinct American culture?

• Write a short paragraph that answers the above question. If need be, read the section titled “Mass Media” on page 455-7 to help you answer the question.

Page 23: Unit 4: Boom Times to Hard Times

The Jazz Age • Read the first paragraph of the

section titled “The Jazz Age” on page 461 and answer the following question: What two factors led to the popularity of jazz in the 1920’s?– The great African American migration.– The growing radio audience.

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The Jazz Age • Jazz grew out of African American

music of the South, especially ragtime and blues.

• Duke Ellington • Louis Armstrong• George Gershwin

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“Nighthawks”Edward Hopper

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The Jazz Age• Lost Generation– Ernest Hemmingway– F. Scott Fitzgerald

• The Harlem Renaissance– Langston Hughes

• Read “I, Too,” by Langston Hughes on page 465. • What is Hughes describing?

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Chapter 13 Section 3:Cultural Conflicts

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Prohibition• Three main goals of Prohibition (Read paragraph 1

under the heading “Prohibition” and write down the Three main goals.)– Eliminate drunkenness and the resulting abuse of family

members and others – Get rid of saloons, where prostitution, gambling, and

other forms of vice thrived. – Prevent absenteeism and on-the-job accidents stemming

from drunkenness.

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Prohibition• The Volstead Act was passed in 1919 to provide a

system for enforcing the 18th Amendment. • Since beer, liquor, and wine could no longer be

sold, produced, or transported in the United States, Americans turned to bootleggers to get their fix.

• Bootleggers transported their product to restaurants, nightclubs, and speakeasies.

Page 30: Unit 4: Boom Times to Hard Times

Prohibition

• Define Speakeasies– Bars that operated illegally.

• Prohibition also resulted in organized crime.

• Al “Scarface” Capone

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Issues of Religion• During the early part of the 20th century challenges to

traditional beliefs came from several directions.– Science and technology were taking a larger role in society.– War and the widespread problems of modern society were

causing people to question whether God took an active role in human affairs or if God even existed.

– Some scholars were saying that the Bible was a document written by humans and that it contained contradictions and historical inaccuracies.

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Issues of Religion• The issue of whether or not to teach evolution became a big

dividing line between rural and urban communities.• Fundamentalists believed that the Bible was literally true and

that every story in it actually took place as described. • Scopes Trail

– Tennessee passed a law that banned the teaching of evolution, and science teacher challenged the law by defying it and getting arrested.

– William Jennings Bryan– Clarence Darrow

Page 33: Unit 4: Boom Times to Hard Times

Racial Tensions• In the summer of 1919 mob violence broke

in 25 cities between whites and blacks. • This Summer became known as the “Red

Summer.”• Read the last paragraph on page 471 to

yourself and reflect on what you read.

Page 34: Unit 4: Boom Times to Hard Times

Racial Tensions• Colonel William J. Simmons, revived

the Ku Klux Klan in 1915.• The Klan not only turned their hatred

towards the African Americans, but also carried out crimes against Jews, Catholics, and immigrants.

Page 35: Unit 4: Boom Times to Hard Times

Racial Tensions• The NAACP worked to get 2 things

accomplished in the 1920’s. Read the section titled “Fighting Discrimination” on page 472.–Worked to pass anti-lynching laws.–Worked to protect the voting rights of

African Americans.

Page 36: Unit 4: Boom Times to Hard Times

Racial Tensions• Marcus Garvey and the Universal

Negro Improvement Association.– Garvey sought to build up African

American’s self respect and economic power.

– He also urged African Americans to return to Africa.

Page 37: Unit 4: Boom Times to Hard Times

Politics and ProsperityChapter 14

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Bellringer• 1.) The rapid expansion of urban areas in the late 1800’s

resulted from both ___________ and the increased productivity of factory jobs.(Ch8-3).

• 2. By 1910, nearly 60% of American children were in school because many states began requiring school __________ by law. (Ch9-1).

• 3. As _____ began to make their way into professional jobs, they worked mainly in education, health care, and social work. (Ch9-4)

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Chapter 14 Section 1: A Republican Decade

• The Red Scare • Labor Strikes• Republican Leadership• The Harding Presidency• The Coolidge Presidency• The Election 1928

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The Red Scare• The Russian Revolution

– Czar Nicholas II abdicated in March of 1917.– Alexander Kerensky takes power, but his decision to

stay in the war hurt him politically.– Revolutionary leader Vladimir Lenin leads the

Bolsheviks in the overthrow of Kerensky.– They were known as the “Reds” because of their

red flag.

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The Red Scare– The Bolsheviks took over all privately owned land

and put it under the control of the government.– Civil war broke out and eventually the Reds won.– 2 years later the country would become known as

the United Soviet Socialist Republic (USSR).– Lenin made communism the official ideology of

the Soviet Union.

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The Red Scare– Communism is openly hostile to the views and beliefs of

Americans.• Capitalism, private ownership of land and business, and 1st

Amendment rights.

– For Lenin communism meant: (Read paragraph #6 on page 481 and list what communism meant.)• The govt. owned all land and property• A single political party controlled the govt.• The needs of the country come before the rights of individuals.

Page 43: Unit 4: Boom Times to Hard Times

The Red Scare• American Fears– Russia’s intention to spread communism

to other countries alarmed many Americans.

– Already leery of Europeans because of WWI Americans worried that immigrants might bring radical ideas into the U.S.

Page 44: Unit 4: Boom Times to Hard Times

• List the reasons for the Red Scare in the 1st full paragraph on page 482.– Communists tried to overthrow the new German

govt. in 1919.– Communists came to power in Hungary.– Strike in Seattle, and the mayor proclaimed them

“revolutionists.”– Bombs in the mail.

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The Red Scare • Schenck v. U.S

– During WWI Schenck wrote draftees and urged them to not report for duty.

– He was convicted under the Espionage Act, and he eventually appealed.

– The Court decided that the government could silence free speech when it is a matter of “clear and present danger.” • They compared it to falsely shouting “Fire!” in a crowded

theater.

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The Red Scare• Gitlow v. New York

– Bernard Gitlow was convicted of “criminal anarchy” because he published calls to overthrow the govt. by force.

– Prior to this case the federal government argued that the bill of rights protected individuals only from the federal govt. not the states.

– When they upheld Gitlow’s conviction they also affirmed that the 14th amendment applied to the states as well.

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The Red Scare• The Palmer Raids – Targeted Socialists, Communists, and anarchists.– “Any movement, however cloaked or dissembled,

designed to undermine the govt., will be met with unflinching, persistent, aggressive warfare.”• Palmer, December 31, 1919.

– On Jan 2, 1920 federal agents in 33 cities carried out raids and thousands were arrested.

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The Red Scare

• Sacco and Vanzetti– Two Italian immigrants that were anarchist, and were

arrested in connection with a double murder.– Many people believed they were arrested simply

because they were immigrants with radical beliefs. – Eventually they were convicted, and sentenced to

death.

Page 49: Unit 4: Boom Times to Hard Times

Labor Strikes• Many Americans believed that Communists

were behind the labor strikes.• However, most workers went on strike

because the standard of living they had achieved during the War had declined.

• The Boston Police Strike• Steel and Coal Strikes

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Bellringer• 1.) A major economic argument for imperialism was that the United

States needed new __________ markets for its goods (Ch10-1).• 2.) As a result of the Spanish-American War, the United States annexed

the ___________, Guam, and Puerto Rico (Ch10-2).• 3.) The central message of the Roosevelt Corollary was that the U.S.

would use __________ to prevent intervention in the affairs of neighboring countries (Ch10-3).

• 4.) Journalists known as _________ worked at exposing political and business corruption (Ch11-1).

• 5.) Upton Sinclair’s novel entitled The Jungle exposed dangerous workplace conditions in the _____________ industry (Ch11-1).

Page 51: Unit 4: Boom Times to Hard Times

Republican Leadership• Political Consequences of the Red Scare.

– Americans felt that the Republican party would be better at restoring stability than the Democrats.

– Republicans dominated all three branches of the govt. starting in 1920.• 3 Republican Presidents: Harding, Coolidge, and Hoover.• Majority in Congress for most of the period.• Supreme Court decisions reflected Chief Justice Taft who was

appointed by Harding in 1921.

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Republican Leadership• Generally they favored business and

social stability.• Many of these leaders were

businessmen who believed social stability would lead to economic growth.

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The Harding Presidency• Warren G. Harding took office as the Red Scare and

Labor Strikes began to subside.• Cabinet Appointments. (List the cabinet

appointments made by Harding. They can be found on page 486 at the top of the page.)– Herbert Hoover, Secretary of Commerce.– Charles Evan Hughes, Secretary of State.– Andrew Mellon, Secretary of the Treasury.

Page 54: Unit 4: Boom Times to Hard Times

The Harding Presidency• Hughes worked towards world peace.• Mellon would serve under Harding, Coolidge,

and Hoover, thus shaping the American economy during the 1920’s.

• Harding also made some bad appointments that would come to overwhelm his presidency and life.

Page 55: Unit 4: Boom Times to Hard Times

The Harding Presidency• Foreign Policy

– Isolationism- policy of avoiding political and economic alliances with foreign countries.• Harding opposed American entrance in to the League of

Nations.

– Disarmament- a program in which the nations would give up their weapons voluntarily.• Washington Conference of 1921- meeting where several major

military powers agreed to reduce the size of their navies.

Page 56: Unit 4: Boom Times to Hard Times

The Harding Presidency• Economics– Harding worked to strengthen American

businesses by raising tariffs to an all time high.

– The Fordney-McCumber Tariff discouraged imports that would hurt growing American industries like china, toys, and chemicals.

Page 57: Unit 4: Boom Times to Hard Times

The Harding Presidency• Great Britain and France

– Both were mad about the new tariff because it hurt their ability to pay off war debts to the U.S.

• Germany– The Treaty of Versailles forced Germany to pay a huge

amount of reparations.– The Dawes Plan

• Signed in 1924, the plan set forth a payment plan, reorganized the German National Bank, and approved a loan to Germany.

Page 58: Unit 4: Boom Times to Hard Times

The Harding Presidency• Domestic Issues

– As America became more isolationist, nativism grew.– This flared up for several reasons.

• Patriotism- Americans felt that foreigners could never be fully loyal to the U.S.

• Religion- distrusted immigrants because they were Catholic, Orthodox Christian, and Jewish.

• Urban Conditions- blamed corruption, and slums on immigrants.• Jobs- feared immigrants would take jobs.• Red Scare- feared Communism

Page 59: Unit 4: Boom Times to Hard Times

The Harding Presidency• Nativist called for govt. action.

– Congress passed a law that restricted Immigration on a temporary basis.• Quota- numerical limit, imposed on immigrants representing certain ethnic

groups or nations.• Quota was set at the annual rate of 3% of that groups total U.S. population

as of the 1910 census.

– The National Origins Act set a permanent limit of 2% based on the census of 1890.

• These measure reflected the sentiment of the Republican Party supporters.

Page 60: Unit 4: Boom Times to Hard Times

The Harding Presidency

• African Americans– Speech in Birmingham, AL (page 485)– Eventually proposed anti-lynching laws,

but it died in the Senate.

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The Harding Presidency• Teapot Dome Scandal

– Scandals involving Harding’s administration that could never be directly attached to him.

– Disturbed him so much that it eventually led to his death on August 2, 1923.

– One official stole govt. funds, some took bribes, several others were accused of wrong doing, and 2 committed suicide.

– The worst of which was Secretary of the Interior, Albert B. Fall• Gave oil-drilling rights on govt. oil fields in Elk Hills, CA and Teapot Dome,

Wyoming.• In return he was given $300,000 in the form of loans from 2 companies.

Page 62: Unit 4: Boom Times to Hard Times

The Coolidge Presidency

• Calvin Coolidge was Harding’s VP and was sworn in by his father.

• He was popular, and had kept out of the scandal and won the election in his own right in 1924.

Page 63: Unit 4: Boom Times to Hard Times

The Coolidge Presidency• Laissez Faire– What was the one sentence that summed up a major

theme of the Republican Decade. (first paragraph of the section titled “Laissez Faire” on page 488)• “The chief business of the American People is business.”

– Coolidge felt that the best thing the govt. could do to help business was for the govt. to stay out of the way.

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The Coolidge Presidency• Laissez Faire– The govt. lowered inheritance and income

taxes.– Approved higher tariffs–When the Mississippi River flooded he told the

citizens that the govt. had no duty to protect its citizens “against the hazards of the elements.”

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The Coolidge Presidency• Kellogg-Briand Pact– Pledge by more than 60 nations to not use

threat of force in their dealings with each other.– Basically outlawed war, but had no enforcement

strategy. – By 1941 we would see that this pact was

worthless.

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The Election of 1928• Coolidge chose not to run again.• Republicans nominated Herbert Hoover.• Democrats nominated Alfred E. Smith, the first Catholic to ever

be nominated for president.• Prohibition was a major issue and Smith supported repealing it,

whereas Hoover saw it as a “noble experiment.”• Vote reflected the urban-rural split, and Hoover won by a large

margin.• Many Americans expected the “Coolidge Prosperity” to continue.

Page 67: Unit 4: Boom Times to Hard Times

Bellringer1. The efforts of Florence Kelley during the Progressive Era

convinced many states to abolish ____________ (Ch11-1).2. President William Howard Taft continued Roosevelt’s

progressive reforms by pursuing ________ cases in court (Ch11-3).

3. Progressivism was brought to an end by _____ (Ch11-3).4. The June 28, 1914 assassination of Archduke ___________ in

Sarajevo, Bosnia, sparked World War I (Ch12-1)5. Germany’s use of __________ submarine warfare was a major

factor in the decision of the U.S. to enter WWI (Ch12-2).

Page 68: Unit 4: Boom Times to Hard Times

Bellringer1. The efforts of Florence Kelley during the Progressive Era

convinced many states to abolish child labor(Ch11-1).2. President William Howard Taft continued Roosevelt’s

progressive reforms by pursuing antitrust cases in court (Ch11-3).

3. Progressivism was brought to an end by WWI (Ch11-3).4. The June 28, 1914 assassination of Archduke Franz Ferdinand in

Sarajevo, Bosnia, sparked World War I (Ch12-1)5. Germany’s use of unrestricted submarine warfare was a major

factor in the decision of the U.S. to enter WWI (Ch12-2).

Page 69: Unit 4: Boom Times to Hard Times

Chapter 14 Section 2: A Business Boom

• A Consumer Economy• Ford and the Automobile• Industrial Growth• Bypassed by the Boom

Page 70: Unit 4: Boom Times to Hard Times

Setting the Scene• Can you imagine a world where there are no such

things as highways, cars, billboards, fast food restaurants, or any type of advertisement whatsoever?

• Until the 1920’s there was no such thing as a shopping mall.

• The first one opened in Kansas City.• The first fast food joint was A&W Root Beer.• Ad campaigns got their start as well.

Page 71: Unit 4: Boom Times to Hard Times

A Consumer Economy• From 1914 to 1926, the number of millionaires in the

U.S. more than doubled.• The 1920’s saw the development of a consumer

economy, one that depends on a large amount of spending by consumers-individuals who use, or consume products.– Increased spending means more profits, which in turn lead

to more jobs and higher wages, which also encourages even more spending.

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A Consumer Economy• Traditionally Americans valued thrift.

– Meaning they usually only bought what they needed to survive.

• During the 1920’s there were several things that sparked higher spending:– Higher Wages – Clever Advertising – New Products– Lower Costs – The widespread availability of credit.

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A Consumer Economy• Buying on Credit

– Until the 1920’s Americans paid cash for everything.– Borrowing money for anything other than a house was

considered unthrifty or immoral.– However new consumer goods such as the automobile and

refrigerators became widely available.• Everyone wanted one, but they were quite expensive.

– In order to accommodate their consumers, manufacturers started allowing their customers to buy on installment plans.

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A Consumer Economy• An installment plan is a method of financing in

which a customer agrees to make partial payments (installments) at set intervals over a period of time until the debt is paid in full.

• These installment plans fueled the growth of consumer spending.

• Advertising made buying on installment plans acceptable.

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A Consumer Economy• Electric Power

– Refrigerators, washing machines, and other power-hungry appliances created a surge in demand for electricity.

– Between 1913 and 1927 the number of electric power customers more than quadrupled.

– Farming communities did not gain electric power as rapidly as cities.

– General Electric became one of the worlds largest companies through it’s sales of industrial electronics and consumer electronics.

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A Consumer Economy• Advertising

– To rise above competition, companies resorted to mass-media advertising.

– Advertising had traditionally been about the basic information of a product.

– During the 1920’s advertisers began to speak less about the product, and more about how the product could enhance the consumers image.

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A Consumer Economy• Rise in Productivity

– Productivity- a workers level of output, whether in goods or services, over a given period.

– Gross National Product (GNP)- a measure of productivity which, is the total value of goods and services a country produces annually.

– From 1921 to 1929 the GNP of the U.S. grew at an average rate of 6% per year, as related to 1% in the previous decade.

– Reasons for Rise.• Resources- Oil Fields in TX, OK, CA• New Management methods- Fredrick Winslow Taylors time-and-motion studies• New Technologies

Page 78: Unit 4: Boom Times to Hard Times

Ford and the Automobile• The first automobile appeared in Germany in the

1880’s.• Charles and Frank Duryea developed a marketable

car in 1892.• Over the next 28 years, about 8 million cars rolled

out of factories and onto American Roads.• During the 1920’s the number of registered vehicles

rose by 15 million.

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Ford and the Automobile• Ford and the “Model T”– Ford worked as an engineer for a lighting

company.– In 1896 he perfected the first version of

what he called a “quadricycle” – By 1903 he started his own company, and

in 1908 he sold 30,000 Model T’s.

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Ford and the Automobile• Ford wanted to “democratize” the automobile.• He perfected the assembly line which is a manufacturing process

in which each worker does on specialized task in the construction of the final product.

• Ford did not invent the assembly line, but he made it more efficient.

• Model T’s were turned out every 24 seconds• Ford produced over half of the automobiles made in the world

between 1908 and 1927 (15 million cars).• Ford practiced vertical consolidation.

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Ford and the Automobile• A Complex Businessman– He ran his company harshly and used violence

to fight unions.– During World War I he devised Americanization

programs for his foreign-born workers. • In return for higher pay workers had to take civics,

and English classes, as well as let investigators search their homes.

Page 82: Unit 4: Boom Times to Hard Times

Industrial Growth• Automobile making became the nation’s biggest single

manufacturing industry. • Many businesses emerged as a result of the automobile.

– Garages– Car dealerships– Motels– Campgrounds– Gas stations– Restaurants

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Industrial Growth• Suburbs grew and the housing market

boomed.• Other businesses thrived as well– Movie Making– Radio– Publishing– Aviation

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Industrial Growth

• Business soared as a result of the Republican ideal of laissez-faire.

• Even with the lack of regulation monopolies declined in power.

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Bypassed by the Boom• The farming industry suffered, because of

declining demand and falling prices.• Many unskilled laborers, including African

Americans did not see the increase in quality of life that most everyone else saw.

• Cotton textiles, soft coal, and railroad industries also suffered.

Page 86: Unit 4: Boom Times to Hard Times

Chapter 14 Section 3: The Economy in the Late 1920’s

• Economy Appears Healthy• Economic Danger Signs

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Economy Appears Healthy

• People expected the good times to continue.• “Wonderful Prosperity”

– In 1925 the market value of all stocks were at $27 billion, and by October of 1929 they were valued at $87 billion.

– Since 1914 the value of workers wages had increased by 40%.

– Unemployment was below 4%

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Economy Appears Healthy• “Everybody Ought to be Rich”

– The Man Nobody Knows (1925), Bruce Barton.– “I am firm in my belief that anyone not only can be rich, but ought to be

rich.”• John J. Raskob

• Welfare Capitalism– Employers provided such benefits as:

• Raised wages • Paid vacations• Health plans• Recreation programs • English Classes for immigrants

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Economic Danger Signs• Uneven Prosperity– The rich got richer.– .01% of the population had income over $100,000

per year.– 71% of families earned less than $2500 a year.– Congress reduced taxes.– Mellon believed that taxation hurt business growth.

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Economic Danger Signs• Personal Debt– Purchasing on credit led to high personal

debt.

• Playing the Stock Market– Speculation- the practice of making high-risk

investments in hopes of getting a huge return. – Buying on Margin

Page 91: Unit 4: Boom Times to Hard Times

Economic Danger Signs• Too Many Goods, Too Little Demand

– Rising productivity caused warehouses to be overstocked with no one to buy the goods.

– Automobile industry began to slump after 1925 and caused a ripple effect through its suppliers.

– Housing market also declined.

• Trouble for Farmers and Workers– Twice Congress passed a bill to help the farmers by increasing the

price of crops, but both times it was vetoed by Hoover.– Factory workers in distressed industries also began to experience

tough times.