PanicProsperity of 20’s and Depression of 30’s

Postwar Prosperity● Following WWI, the economies of many nations prospered for about a

decade. (1918-1928)● An economy is “The Wealth and Resources of a nation’s exports and

imports”.● Prosperity is “A time of great improvement in wealth and livelihood”.● People from all over the world benefited from prosperity brought on by war

and eventual peace.● In America, people were playing the Stock Market to make it rich.

○ A stock is “Part of a corporation purchased by investors”.○ An investor is “Someone who buys and sells stocks to earn money”.

Conditions for Economic Prosperity1. WWI provided markets for US produced goods. (Food, War Supplies, and

Medicines)2. Innovation created jobs in factories. (Automobiles, Appliances, Energy,

Etc.)3. Employment is available for the vast majority of people (Rates as high as

95%)4. Stock Market is steady or rising. (Investors continue to make money)5. Economy is diversified. (Many different businesses creating different

products)6. Independence within economy. (Economy is self-sustaining and not

dependent on other nations.)

Why the ROARING 20’s?● The most important invention after WWI

was the Automobile.● Henry Ford’s assembly line mass

produced these automobiles. (Model T)● The Automobile industry greatly increase

the US economic prosperity.● The need for the raw materials of Steel

and Oil became extremely important.● Unemployment rates dropped to all-time

lows.● Life was faster and louder than ever

before.

Over 15 Million model T’s were created in Henry Ford’s factories using an assembly line.

Farmers ● In the Great Plains, a severe drought

and dust storms destroyed crops.● Parts of the plains became the Dust

Bowl. An area of land depleted of top-soil.

● Farmers struggled to grow crops, lost income, and some lost their farms.

● In parts hardest hit by the Dust Bowl, farmers left their farms and moved to California for jobs.

● These people became the Okie’s because Oklahoma was hit the hardest.

Image: Dust storms that became infamous in the Great Plains. Led to the Dust Bowl.

Okie Children Okie mother with children

The Jazz Age

● During the 1920’s a new music called Jazz became popular.

● Jazz was a music that came from African American musicians.

● Jazz music mixes beats, rhythm, and sound that is unique for its time.

● Stars like Louis Armstrong, Billie Holiday became household names.

Prohibition the 18th Amendment● In 1920, the US government put a

ban alcohol on which made the production, transport and sale of alcohol illegal.

● Prohibition created several unforeseen consequences.

○ Gangsters gained power through illegal alcohol production, transport, and Sale.

○ Speakeasies opened in nearly every town.

○ Moonshine was produced in people’s home without regulation.

○ NASCAR was invented due to the transport of illegal alcohol.

Gangster Al Capone

● The 18th Amendment is the only amendment to be repealed.

● The 21st Amendment stopped the ban of alcohol.

● The FBI was created to hunt down leaders of the organized crime.

The 19th Amendment: Women’s Right to Vote

● In the early 20th Century, Women suffragettes argued and won their right to vote in the United States.

● Women like, Susan B. Anthony, Elizabeth Cady Stanton, and Lucretia Mott became famous for this struggle.

● Liberated women began dressing and behaving more independently.

● Some became Flappers. Women who liked to live a fast paced lifestyle.

The Age of Sports

1. During the 20’s sporting events became big business.

2. Sports heroes like Babe Ruth, Jack Dempsey, and Seabiscuit captivated audiences.

3. Baseball, Boxing, Horse Racing, and NASCAR all boomed during this period.

4. Stadiums and parks were filled for the first time.

Babe Ruth: Was one of the most famous people of the era.

Boxing Champ Jack Dempsey thrilled fans.

● Beginning on Black Thursday and ending on Black Tuesday, the Stock Market Crash was a major hit to the economy.

● Nearly everyone who invested money lost it all.

● People became entangled in loans.● This event began a ten year

struggle known as the Great Depression.

The Great Depression Begins

Black Thursday made all investors Panic and by Tuesday Billions of dollars were lost.

What economic conditions lead to decline?● Debt - When the Great Depression began, most businesses and American

people had debt. (Debt - When you borrow money and haven’t paid it back)● As prices for goods skyrocketed, paper money was produced more, the

circulation of money increased and inflation became a real problem.● Unemployment: Businesses had to lay off and remove workers to pay their

bills and make a profit. Unemployment soared to above 25% in some areas.● Stock Market: After the crash, people lost faith in investing and the stock

market was unstable at best.● Due to lack of jobs, people lost their homes. Slums began to take over

neighborhoods. These slums were called Hoovervilles. President Hoover became the “Most Hated Man in America”.

1932 Election Hoover vs. Roosevelt● Herbert Hoover was the

incumbent president running for a 2nd term.

● He believed the economic situations were improving.

● Believed that Government shouldn’t create programs.

● Hoover believed economic conditions rose and fell and would recover without assistance.

Vs.

● Franklin Roosevelt was the challenger in the election.

● He believed economic conditions were worsening.

● Believed Government should provide aid to help through Depression.

● Roosevelt created the New Deal program that proposed changes to support recovery.

New Deal Programs● After his victory in the election of

1932, Franklin Roosevelt put his New Deal plan into action.

● Several Acts were passed like○ AAA (Agricultural Adjustment Act)○ CCC (Civilian Conservation Corp)○ WPA (Works Progress Admin.)○ FERA (Fed. Emer. Relief Act)○ SEC (Securities Exchange Comm)○ Social Security

● All these acts were meant to provide work and relief for citizens struggling during the depression.

Results of the New Deal and End of Depression

● The New Deal programs were responsible for many of the infrastructure projects in use today. (Highways, Parks, Schools, Hospitals, Dams, Etc.)

● The Programs provided economic aid and relief to Americans.

● The US economy still struggled throughout the 1930’s however.

● The outset of WWII is what got the USA out from the Depression.