Economic slumps were a steady occurrence in America. In the years 1819, 1837, 1857, 1873 and 1893 the economy weathered hard times.
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2 Economic slumps were a steady occurrence in America. In the years 1819, 1837, 1857, 1873 and 1893 the economy weathered hard times. In 1914, another economic collapse was on schedule but the economy bounced back with the start of War.
3 RESOLUTION OF GREAT WAR Veterans returning from World War I encountered a revived industrial nation famously known as the Roaring 20 s, but the sudden influx of men coming to the workforce shocked the economy. o America assumed most to all of Germany s debt after the war. o The expansion in industrialization was spurred by the manufacturing of wartime goods. o They no longer needed to make these goods en masse o Women returned to the role of housewives moving backwards in the evolution in women s suffrage (19 th Amendment 1919)
4 WEALTHIEST OF THE WEALTHY, POOREST OF THE POOR ۵ As more people moved from the rural areas into urban areas as the nation moved from a agrarian to a industrial society, more and more people were dependent on the health of the economic market. ۵ In hard times, farmers could at least feed their families, a man relying on wages alone to pay rent, utilities, and food did not have the economic security they once did. ۵ The war resurrected the economy from a predicted recession, but that made the manufacture to demand ration that much more drastic. ۵ In comparison, company owners were making an outrageous amount of money that they, in turn, invested in expansion. ۵ These millionaires hoarded their money, creating a huge rift between the poor and the rich of the nation. ۵ The richest 1% in America owned a third of the country s assets.
5 SAY S LAW an economic law that handles supply and demand o Jean Baptiste Say popularizer of classical economics a product created offers, from that instant, a market for other commodities to the full total of its value o It implies that that no matter what we produce, no matter what quantity, there will be a demand for it. o The value of what was being produced (demand) was going into too few pockets and not back out into the economy.
6 THE USE OF CREDIT Intended Outcome: Consumers would buy more products if they only had to spend a fraction of their income. o Few regulations were placed on banks and they lent money to those who speculated recklessly in stocks. o Credit was used to pay off big items in monthly or weekly bills: o Cars, appliances, radios, furniture, etc. o This went against the traditional American values, they had to be convinced to consume rather than save. o The use of credit cards started in the 1920s o Cards could only be used at the stores that issued them o Third-party payment By 1929, 3 out of 5 cars and 80% of all radios were bought with installment credit.
7 PRIMARY SOURCE Origin Advertisement during the time Purpose advertisement to show people just how easy it is to own a car despite financial limitations Value Demonstrates the role of the media in the endorsement of installment credit Limitation This is only one example from one company. It does not show the outcome of this method of payment in later years.
8 THE ECONOMIC SLUMP WORLDWIDE
9 CANADA o Few countries were as directly impacted by America s economic crisis. o They relied heavily on raw materials and farm exports. o Between 1929 and 1933 o Gross National Expenditure: down 42% o 30% of the labor force was not working o Birthrate dropped o Urbanization momentum reversed o Government officials refused to provide work for the jobless Birth of Social Welfare Activist Role for Government Populist Political Movements Single, homeless men were refused aid, and often ended up in government run unemployment relief camps. The conditions of these camps were protested in 1935 during the Regina Riot. o W. L. Mackenzie King chose not to acknowledge that an economic crisis had hit. 1 policeman died Dozens of men injured 130 men arrested
10 LATIN AMERICA Latin America still had a tradedependent economy, which left them very vulnerable to any fluctuation in worldwide economics. o They also abandoned the gold standard in 1931 o Depreciation of the exchange rate o Only 5 out of 20 countries did not default o Argentina, Honduras, Haiti and the Dominican Republic o Venezuela paid off its debt and did not need to default o Depression in Europe and the US was a catastrophic crisis of the financial system because of bank collapses o Latin America came through the Depression with modest financial system damages.
11 POPULAR CULTURE 1920 S During the Great Depression, Europeans bought fewer American products that worsened the manufacturing industry. o Movies with sound and color o Prohibition o Gangsters o Al Capone o Growth of the Ku Klux Klan o Commercial Radio o Music o Duke Ellington and Al Jolson o The Charleston o Baseball o Babe Ruth o Soccer
12 AUTOMOBILES Henry Ford was able to mass produce the car beginning in the early 1900 s. This made it possible for middle-class families to own cars, where they used to just be a toy of the wealthy. CHILDREN S TOYS
13 ECLECTIC HOME GOODS Many Americans still didn t have electricity, but that did not effect the electronic industry until the items became a luxury. o The Radio o Entertainment, news, and new ideas o The Refrigerator o The Washing Machine
14 FURNITURE An example of inventions in furniture during this time can be easily related to the portable bathtub with a water heater.
15 AIRPLANES o The use of airplanes apart from war o Air Mail: investment to improved stability and provide practical use o Stunt planes: entertainment at State Fairs, events, etc. o Charles A. Lindbergh crossed the Atlantic alone
16 OTHER INVENTIONS o Vending Machines o Aerosol Sprays o Antibiotic Penicillin - o Talking Pictures o Frozen Food o Handheld Hair Dryer o Videophone o Electric Razor 1927 o Vacuum Tube o Polaroid Hearing Aid Photography o Iron Lung o Liquid Fuel Rocket o Quartz Clock o Adhesive Bandages o Television
17 WORKS CITED "Buy Now, Pay Later: A History of the Credit Card." Random History and Word Origins for the Curious Mind. N.p., n.d. Web. 2 Feb < "The Canadian Encyclopedia." The Canadian Encyclopedia. N.p., n.d. Web. 2 Feb < "The Great Depression [ushistory.org]." US History. N.p., n.d. Web. 2 Feb < 48.asp>. "History of Washing Machines." About.com Inventors. N.p., n.d. Web. 3 Feb < wstartinventions/a/washingmachines.htm>. "Ibsen Martinez, Latin America and the Great Depression." Library of Economics and Liberty. N.p., n.d. Web. 2 Feb < Kyvig, David E. Daily Life in the United States, : Decades of Promise and Pain. Westport, Conn: Greenwood Press, Print. Lindop, Edmund, and Margaret J. Goldstein. America in the 1930s. Minneapolis: Twenty-First Century Books, Print. McElvaine, Robert S. The Great Depression: America, New York: Times Books, Print. "Say's Law Of Markets Definition." Investopedia. N.p., n.d. Web. 2 Feb < s/says-law.asp>. "Understanding Say's Law of Markets : The Freeman : Foundation for Economic Education." Foundation for Economic Education. N.p., n.d. Web. 2 Feb < "vintage everyday: January 2011." vintage everyday. N.p., n.d. Web. 2 Feb < 2011_01_01_archive.html>.
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