Economic Prosperity

Market Economy
1.

2.

3.

Who makes most of the major decisions?

Individuals
Businesses
Government
Involvement is limited
Who owns businesses?

Individuals
Limited Government: Government power is limited in its ability to influence citizens lives.

Presidential Quotes on Economic Policy

1. Harding I have said to the people we mean to have less government in
business as well as more business in government.

2. Coolidge This is a business county...and it wants a business

government. I do not mean a government by business, but I do mean a
government that will understand business.

3. Hoover This Republican party...restored the government to its

position as an umpire instead of a player in the economic game. For these
reasons the American people have gone forward in progress while the rest of
the world has halted, and some countries have even gone backwards.

Model T Ford
Mass Production: Goods produced on a large enough scale to reduce selling costs.
Mass Consumption: Lots of people can buy goods in the market.

How was this Possible?

New Innovations in Advertising
1. BILLBOARDS
2. RADIO
3. MAGAZINES AND ADS

All the while, farmers continued to suffer from a decrease in demand, lower
prices, and many left their farms for city factory jobs.
The Intolerant Activists
1. Fought to change things they did not agree with = Religious activists.
2. Others were afraid this would spread to the United States due to
massive European immigration = Communist revolution.
3. These activists fought to render the sale and consumption of alcohol
illegal

4.
5.

= Religious activists
This was called ____Prohibition____________
Nativism:The belief that Native-born Americans from England and
Germany are superior to other Europeans, and that immigration should

stop.
Supported by the ______U.S. public & govt officials.____
6. The Red Scare
Italians Sacco and Vancetti were accused of crimes, convicted, and
executed
Attorney General A. Mitchell many raids on suspected communists.
7. Scopes Trial
Fundamentalism: A religion that believes in literal interpretation of
scripture. Attacked John Scopes for teaching Charles Darwins theories on
evolution of humanity.
Outcome: Scopes was fined, and debate over teaching religion in
schools begun.
The Great Migration
Part I
Part II
Part III
Part IV
The Harlem Renaissance
1. How did African Americans in Harlem deal with their frustrations and
anger concerning the race riots, job discrimination, and injustice?
Expressed through poems, music, books, and dance.

Marcus Garvey: Encouraged followers to return to Africa.

Langston Hughes: Wrote about freedom and equality.
Problems with the Economy
1. During the 1920s the average Americans income did not match the
______cost_ of _________living___.
2. High cost of living was a result of illegal and unstable practices.
Profiteering
Under-production
Over-spending
Factory Production and profits go up, but $wages$ stay low and
employment does not increase, so many goods/products are not bought =
Workers are laid off.
Unregulated businesses engage in corrupt practices, which lead to a
number of business failures = loss of money.
Wealth in unevenly distributed = 5 percent of wealthy Americans
control of wealth.
Worsening economic conditions cause the rich to lose confidence in
the economy; they stop investing and buying which leads to the crash of the
market.
The government raises tariffs(taxes) on foreign goods, and foreign
countries do the same in retaliation. World trade income = comes to a halt.
Uninsured banks make bad loans, resulting in = bank failures
that bring panic as Americans rush to withdraw savings, causing more
collapses.
Booming stock market inspires people to borrow money so they can =
gamble on the stock market.
Farmers, deep in debt, produce too much. But Americans dont
purchase much, even though prices are = low.