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1920’s Business Boom!. How does the boom lead to the bust?. “Here was a new generation,…dedicated more than the last to the fear of poverty and the worship of success; grown up to find… all wars fought, all faiths in men shaken.” -F. Scott Fitzgerald, This Side of Paradise.
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1920’s Business Boom! How does the boom lead to the bust?
“Here was a new generation,…dedicated more than the last to the fear of poverty and the worship of success; grown up to find…all wars fought, all faiths in men shaken.” -F. Scott Fitzgerald, This Side of Paradise
Basics of Economic Boom! • Increased standard of living • Rise of new industries • Changes in consumer behavior • Increased advertising
Increased Spending • Higher wages • Ford doubled workers wages from $2.50 a week to $5.00 a week. • Clever Advertising - How do advertisers today make us buy their products? • Advertisers connected products to the modern era of the 1920’s. • Ex: “Say it with flowers” • New products, especially electric appliances -60,000 families in 1922 had radios -9,000,000 motor vehicles were registered in 1920
Increased Spending • Availability of consumer credit -Attitudes about debt shifted. It was no longer considered shameful. -Advertisers told consumers to “buy now and pay later.” - 75% of the radios purchased in the 1920’s were on credit as were 60% of the cars. -Consumer debt rose from $3 billion dollars in 1921 to $7 billion dollars in 1929. • Consumerism – Higher wages and shorter work days resulted buying binge for the 1920’s.
Rise in Productivity • New resources • More access to natural resources such as oil • New management techniques • As companies grew, the number of managers also increased. They were in charge of the different departments in a company. • Impact of assembly line process • Over production? • New technologies • Automobile, Airplane, Electronic appliances • How will these type of things change the way Americans live?
Warning Signs: • What are three different warning signs that the era of Boom is about to become the era of Bust? • 1. • 2. • 3.
Meanwhile, back at the farm… • Even though business was booming in America, many farmers were suffering. • During the war, farmers had been encouraged to grow many crops to support the troops. The crops were needed, which kept prices up. After the war, a major price dropped occurred, which severely hurt farmers. • Also, in the Midwest, farmers were receiving little rain…this would lead to what will later be called the Dust Bowl.
