2. An Era of Prosperity
• When everyone gets back home from the
war, we now have the means necessary to
produce newer, better goods CHEAPER!!!
• What this means, is stuff you wanted before
you could now get easier
• Installment Buying was introduced, where
consumers purchased goods on credit, or the
promise that they’ll pay it off
• WHERE DO WE SEE IT NOW???
4. What This Means For You
• It Means that middle-class people like
US could now afford stuff like Cars,
Washing Machines, Refrigerators, and
RADIOS, Indoor Bathrooms and
heating, Electricity.
• It also meant people were more willing
to risk their money for greater
rewards, Where???
• Where Else?? THE STOCK MARKET!
5. The Stock Market
• The Stock Market follows two major
trends
• The first is a Bull Market, this
occurs when stock prices in general
continuously rise.
• For the better part
of the 1920’s this
was the case
6. The Stock Market
• The other major
trend is the Bear
Market, it
features a
general fall in
stock prices
across the
market.
8. The Danger In The Market
• Many people were getting their stocks by
Buying On Margin, or taking out loans so
they could invest in the stock market.
• People saw the stock market as a kind of
lottery system, when people did get really
rich, they were usually very lucky.
• Most Americans still were just making ends
meet.
• What’s the Problem with Investing Then?
9. *ALERT* Trouble Rising *ALERT*
• One group who really struggled during the
1920’s were American Farmers.
• Farmers were growing more products than
Americans could eat.
• They couldn’t sell their goods to other
countries, because other countries were
too poor. Why is this?
• Farmers also had high levels of debt,
because they had taken loans out in good
times…now banks wanted their money,
and there was none.
10. Labor and the 1920’s
• People working jobs in labor
experienced mixed results.
• On one hand they were receiving
better direct benefits from their
employers, as unions had little power
in the 1920’s
• On the other hand, new assembly
lines, meant that less workers were
necessary, because complicated jobs
were simplified.
11. The Election of 1928
• After the prosperity of the 1920’s,
Americans looked to continue the
trend.
• Herbert Hoover a Republican from
Iowa would be elected as our 31st
President.
• Most saw this as a great move because
Hoover really understood business and
Americans hoped to keep growing.
