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Guided Notes – The “Roaring” Twenties & the Great Depression The U.S. Economy in the 1920s • At the end of World War I, the U.S. was the world’s leading economic power. This position grew stronger during the boom times of the 1920s, but by the end of the decade the U.S. economy was crashing. During WWI, U.S. farms and factories had supplied much of the world with the food and supplies needed to fight the war. Most economic growth occurred in industry—with automobile manufacturing a large part of this. Factories also turned out a wide range of consumer goods. This success was reflected in the stock market—during the 1920s, the overall value of stocks rose 400 percent. Mass Produced Automobiles Before the 1920s, cars had been a luxury only for the very wealthy. Now Ford’s assembly line model allowed them to be produced quickly and cheaply, and more people could afford to have them. In 1927, Ford discontinued the Model T (above) after having sold 15 million of that model. Radio and “Mass Culture” During the course of the 1920s, radio became the first mass broadcasting medium. This period was known as the “Golden Age of Radio”—radio broadcasting then was as varied as TV broadcasting is today. Radio became a platform for mass marketing, contributing to the rise of “mass culture” that has dominated society since. Hollywood in the 1920s Hollywood boomed during the 1920s. Watching a movie was cheap and accessible, and crowds surged into neighborhood theatres and downtown movie “palaces.” Silent movies were being replaced by “talkies” by the end of the decade—the first of which was “The Jazz Singer” (1927). Charles “Lucky Lindy” Lindbergh In 1927, he became the first person to fly solo, non-stop across the Atlantic Ocean. Within the next decade, advances in aviation would lead to commercial aviation. Flappers Flappers were a “new breed” of young women who went against the norms of what was deemed acceptable behavior for “ladies.” They wore short skirts, bobbed their hair, listened to jazz, smoked, and drank. The Harlem Renaissance The Great Migration of African-Americans out of the rural South into the urban North after WWI led to the development of Harlem as a cultural center of African-American life. There,

which was a way of fighting the Great Depression. many consumers were reaching the limit of their credit and could no longer afford to buy the products that kept the economy expanding. consumer spending had slowed. Banks that had lent money to these investors were in deep financial trouble. U. . Banks failed—people who had savings in those banks could lose their money. The Stock Market Crash  By the fall of 1929. nervous investors began to sell off their stocks.  Easy availability of credit—an arrangement in which a purchaser borrows money from a bank or other lender and agrees to pay it back over time—allowed Americans to increase their spending on consumer goods. Hidden Problems  Buying on margin—borrowing money from stockbrokers to buy stocks. sales of products suffered badly. The worst day was October 29. the role of the federal government greatly increased. By decade’s end. known as Black Tuesday— investors sold off 16 million shares. Franklin D. and a huge sell-off began.  At the end of October. Many investors who had borrowed money to buy stocks had to sell them at a loss to repay their loans. he was elected as president.Name _________________________________________ Date ______________________ Duke Ellington and his orchestra entertained audiences at the Apollo Theatre and people danced the night away at the Cotton Club. and provided government money for welfare and other relief programs. President Herbert Hoover took few actions to fight the Depression. He pushed forward a program called the New Deal. The Great Depression  Following the stock market crash. Joblessness and poverty reduced Americans’ ability to buy food and goods. Stock prices collapsed completely because no one wanted to buy the shares people had sold. Many Americans thought he was doing too little. Others joined. Under his leadership.  New wealth was not distributed evenly—the richest 1 percent of the population earned 19 percent of the nation’s income. Roosevelt In 1932.S. the American economy took a severe downward dive. workers lost their jobs.  Causes: Slowdown in industry—as industry slowed down. The New Deal established public works programs that gave jobs to the unemployed.

Name _________________________________________ Date ______________________ The Rest of the World  In 1929.  As the Depression continued. American businesses were responsible for much of the world’s industrial output. Thus.  Placed heavy taxes on imported goods in an attempt to encourage Americans to buy goods and products made in the U. Great Britain—high interest rates led to decreased spending and high unemployment. The Smoot-Hawley Tariff Act  Signed by President Hoover in 1930. unrest grew worse. events affecting the American economy would have an impact on other countries. . Desperate citizens looked for leaders who could help them.  Many countries in Europe were already struggling to recover from WWI.S.  The act backfired—countries around the world increased their tariffs on American goods  world trade slows to a standstill. which basically meant German money was worthless. Germany—steep reparations after WWI led to hyperinflation. The Great Depression soon spread around the world. Japan—severe economic depression in 1927 caused many banks to close.

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