Week four 1920s
- 1. TEKS 8C: Calculate percent composition and empirical and molecular formulas. The Economy During the 1920s
- 2. TEKS 8C: Calculate percent composition and empirical and molecular formulas. • Explain the impact of Henry Ford and the automobile. • Analyze the consumer revolution and the bull market of the 1920s. • Compare the different effects of the economic boom on urban and rural America. Objectives
- 3. TEKS 8C: Calculate percent composition and empirical and molecular formulas. Terms and People • Henry Ford – applied mass production techniques to manufacture automobiles • mass production – the rapid, large-scale manufacture of identical products • Model T – automobile manufactured by Henry Ford to be affordable on the mass market • scientific management – analysis of a manufacturing process to improve speed and efficiency
- 4. TEKS 8C: Calculate percent composition and empirical and molecular formulas. Terms and People (continued) • assembly line – manufacturing technique in which products move past workers, each of whom adds one component • consumer revolution – flood of new, affordable goods in the decades after World War I • installment buying – buying on credit by making an initial down payment and then paying the balance over time
- 5. TEKS 8C: Calculate percent composition and empirical and molecular formulas. Terms and People (continued) • bull market – a period of rising prices in the stock market • buying on margin – buying stock on credit by paying a percentage up front and borrowing the rest of the cost of the stock
- 6. TEKS 8C: Calculate percent composition and empirical and molecular formulas. How did the booming economy of the 1920s lead to changes in American life? During the 1920s, the American economy experienced tremendous growth. Using mass production techniques, workers produced more goods in less time than ever before. The boom changed how Americans lived and helped create the modern consumer economy.
- 7. TEKS 8C: Calculate percent composition and empirical and molecular formulas. The 1920s were a time of rapid economic growth in the United States. Much of this boom can be traced to the automobile.
- 8. TEKS 8C: Calculate percent composition and empirical and molecular formulas. By applying innovative manufacturing techniques, Henry Ford changed that. His affordable Model T became a car for the people. Before 1920, only wealthy people could afford cars.
- 9. TEKS 8C: Calculate percent composition and empirical and molecular formulas. Ford made the Model T affordable by applying mass production techniques to making cars. • A moving assembly line brought cars to workers, who each added one part. • Ford consulted scientific management experts to make his manufacturing process more efficient. • The time to assemble a Model T dropped from 12 hours to just 90 minutes.
- 10. TEKS 8C: Calculate percent composition and empirical and molecular formulas. Ford also raised his workers’ pay and shortened their hours. With more money and more leisure time, his employees would be potential customers. By 1927, 56% of American families owned a car.
- 11. TEKS 8C: Calculate percent composition and empirical and molecular formulas. How the Automobile Changed America • Road construction boomed, and new businesses opened along the routes. • Other car-related industries included steel, glass, rubber, asphalt, gasoline, and insurance. • Workers could live farther away from their jobs. • Families used cars for leisure trips and vacations. • Fewer people traveled on trolleys or trains.
- 12. TEKS 8C: Calculate percent composition and empirical and molecular formulas. The 1920s also saw a consumer revolution. Advertising created demand. Using installment buying, people could buy more. New products flooded the market.
- 13. TEKS 8C: Calculate percent composition and empirical and molecular formulas. • Throughout the 1920s, a bull market meant stock prices kept going up. • Investors bought on margin, purchasing stocks on credit. Rising stock market prices also contributed to economic growth. By 1929, around four million Americans owned stocks.
- 14. TEKS 8C: Calculate percent composition and empirical and molecular formulas. During the economic boom of the 1920s, cities grew rapidly. Immigrants, farmers, African Americans, and Mexican Americans were among those who settled in urban areas.
- 15. TEKS 8C: Calculate percent composition and empirical and molecular formulas. • More and more people who worked in cities moved to the suburbs. • Suburbs grew faster than inner cities. Cities expanded outward, thanks to automobiles and mass transit systems.
- 16. TEKS 8C: Calculate percent composition and empirical and molecular formulas. While cities and suburbs benefited from the economic boom, rural America struggled. Farm incomes declined or remained flat through most of the 1920s.
- 17. TEKS 8C: Calculate percent composition and empirical and molecular formulas. Government and Foreign Affairs in the 1920s
- 18. TEKS 8C: Calculate percent composition and empirical and molecular formulas. • Analyze how the policies of Presidents Harding and Coolidge favored business growth. • Discuss the most significant scandals during Harding’s presidency. • Explain the role that the United States played in the world during the 1920s. Objectives
- 19. TEKS 8C: Calculate percent composition and empirical and molecular formulas. Terms and People • Andrew Mellon – Secretary of the Treasury under President Harding; favored low taxes, a balanced budget, and less business regulation • Herbert Hoover – Secretary of Commerce; favored voluntary cooperation between businesses and workers • Teapot Dome scandal – scandal during the Harding administration in which the Secretary of the Interior leased government oil reserves to private oilmen in return for bribes
- 20. TEKS 8C: Calculate percent composition and empirical and molecular formulas. Terms and People (continued) • Calvin Coolidge – quiet, frugal, and honest President who took office when Harding died • Washington Naval Disarmament Conference – meeting held in 1921 and 1922 in which nations agreed to limit construction of large warships • Kellogg-Briand Pact – 1928 agreement to outlaw war as an instrument of national policy • Dawes Plan – loan program to help Germany make reparations to England and France so that those countries could repay wartime loans to the United States
- 21. TEKS 8C: Calculate percent composition and empirical and molecular formulas. Rather than pursue Progressive reform, Presidents Warren G. Harding and Calvin Coolidge favored conservative policies that aided business growth. Foreign policy during this time was largely a response to the devastation of World War I. How did domestic and foreign policy change direction under Harding and Coolidge?
- 22. TEKS 8C: Calculate percent composition and empirical and molecular formulas. • Unlike Progressives, Harding favored business interests and reduced federal regulations. • His Secretary of the Treasury, Andrew Mellon, was for low taxes and efficiency in government. • Mellon cut the federal budget from a wartime high of $18 billion to $3 billion. In 1920, Warren G. Harding was elected President, promising a “return to normalcy.”
- 23. TEKS 8C: Calculate percent composition and empirical and molecular formulas. Secretary of Commerce Herbert Hoover sought voluntary cooperation between labor and business. Instead of relying on legislation to improve labor relations, Hoover got business and labor leaders to work together.
- 24. TEKS 8C: Calculate percent composition and empirical and molecular formulas. Harding was a popular, fun-loving president who trusted others to make decisions for him. • Some advisors, such as Mellon and Hoover, were honest, capable, and trustworthy. • Others, including a group known as the Ohio Gang, were not so civic-minded.
- 25. TEKS 8C: Calculate percent composition and empirical and molecular formulas. Some Scandals of Harding’s Administration • Charles Forbes, head of the Veterans’ Administration, wasted hundreds of millions of dollars. For example, he bought overpriced, unneeded supplies. • Attorney General Harry Daugherty accepted money from criminals. • Secretary of the Interior Albert Fall took bribes in return for federal oil reserve leases.
- 26. TEKS 8C: Calculate percent composition and empirical and molecular formulas. The Teapot Dome scandal was the biggest scandal of Harding’s administration. • In 1921, Fall took control of federal oil reserves intended for the navy. • He then leased those reserves to private oil companies. • Fall was sent to prison. • President Harding did not live to hear all of the scandal’s details. He died in 1923.
- 27. TEKS 8C: Calculate percent composition and empirical and molecular formulas. • Coolidge was a quiet, honest, frugal Vermonter. • As President, he admired productive business leaders. After Harding’s death in August 1923, Vice President Calvin Coolidge became President.
- 28. TEKS 8C: Calculate percent composition and empirical and molecular formulas. Coolidge believed that “the chief business of the American people is business.” • Coolidge continued Mellon’s policies to reduce the national debt, trim the budget, and lower taxes. • The country saw huge industrial profits and spectacular growth in the stock market. • There was general prosperity, especially for urban Americans.
- 29. TEKS 8C: Calculate percent composition and empirical and molecular formulas. • Farmers struggled as agricultural prices fell. • Labor unions fought for higher pay and better working conditions. • African Americans and Mexican Americans faced severe discrimination. Not everyone shared in the era’s prosperity. Coolidge ignored such issues, believing it was not the federal government’s job to legislate social change.
- 30. TEKS 8C: Calculate percent composition and empirical and molecular formulas. Under Harding and Coolidge, the United States played an increasingly important role as a world leader. • The Washington Naval Disarmament Conference limited construction of large warships. • The Kellogg-Briand Pact, signed by 62 countries, outlawed war. Much of U.S. foreign policy was a response to the devastation of World War I. But the United States refused to join the World Court.
- 31. TEKS 8C: Calculate percent composition and empirical and molecular formulas. During this period, the United States also became a world economic leader. • To protect American businesses, Harding raised tariffs on imported goods by 25 percent. • European nations retaliated, creating a tariff war. • The Dawes Plan loaned money to Germany so it could pay reparations to Britain and France; in turn, those countries could repay the U.S. for wartime loans. This program damaged the reputation of the United States.