Economic ProsperityMarket Economy

1. Who makes most of the major decisions?● Individuals ● Businesses2. Government ● Involvement is limited3. Who owns businesses?● Individuals

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

Presidential Quotes on Economic Policy1. 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 FordMass 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. BILLBOARDS2. RADIO3. 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 Activists1. 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 = Religious activists● This was called ____Prohibition____________4. Nativism:The belief that Native-born Americans from England and 5. Germany are superior to other Europeans, and that immigration should

stop.● Supported by the ______U.S. public & gov’t 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 Darwin’s theories on evolution of humanity.

● Outcome: Scopes was fined, and debate over teaching religion in schools begun.

The Great MigrationPart IPart IIPart IIIPart IV

The Harlem Renaissance1. 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 American’s 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 ⅓ 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 failuresthat 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 don’t

purchase much, even though prices are = low.