Chapter 12, a World Leader
Lesson 3, Good Times and Hard Times
Objectives:
□ Describe the importance of consumer goods and new art forms in the 1920’s
□ Explain the stock market crash of 1929 and describe the Great Depression.
□ Identify the New Deal programs and describe their effects.
Q: How did the stock market crash change American life?
Dates:
1929 – The stock market crash
1932 – Franklin D. Roosevelt is elected President
1933 – The Social Security Act is passed
Vocabulary:
Consumer good
Assembly line
Stock market
Depression
Bureaucracy
People:
Henry Ford
Louis Armstrong
Duke Ellington
Herbert Hoover
FDR
Places:
Harlem
Dust Bowl
1. The Good Times – The Roaring 20’s
a. When WWI ended there was demand to produce war supplies.
b. Factories started producing vacuum cleaners, washing machines, toasters, refrigerators, and radios.
a. Changes in Industry
i. These new products were called consumer goods, products made for personal use.
ii. They were possible because people had electricity in their homes.
iii. The AUTOMOBILE was the most wanted of consumer goods.
i. Henry Ford invented the assembly line.
1. Instead of being built one at a time, Ford cars were put together by a line of workers doing different jobs.
b. New Art Forms
i. Jazz and film
ii. The Great Migration - when hundreds of thousands of blacks migrated to northern cities.
iii. Louis Armstrong and Duke Ellington were one of the two best musicians
iv. The Harlem Renaissance was a time period in the 1920’s that became popular due to so many African American musicians, writers, and artists.
v. Radio Stations – by 1929 more than 800 stations were reaching 10 million families.
vi. Movie going was a popular thing. Silent films then “talkies” – with sound.
2. The End of Good Times
i. The Stock Market – is a place where people can buy or sell shares in companies (or stocks)
a. What is the Stock Market?
The stock market is an everyday term we use to talk about a place where stocks and bonds are "traded" – meaning bought and sold. For many people, that is the first thing that comes to mind for investing. The goal is to buy the stock, hold it for a time, and then sell the stock for more than you paid for it.
How long do you hang on to stock? Investors who hold stock for 15 years or more usually succeed in the market. Stocks are long-term investments. But there are no guarantees.
b. How the Stock Market Works…
When you buy stock, you become a shareholder, which means you now own a "part" of the company. If the company's profits go up, you "share" in those profits. If the company's profits fall, so does the price of your stock. If you sold your stock on a day when the price of that stock falls below the price you paid for it, you would lose money.
c. The Big Crash - 1929
- some investors decided to take their money out of the stock market.
- This caused stock prices to fall.
- people panicked and stock prices fell.
- the stock market crash was due to a panicked population.
d. Aftermath
1. The crash caused some businesses to close.
a. Workers lost their jobs.
b. There was less money to spend, more businesses closed.
c. Banks gave more money out, as loans, than they had in reserve.
d. The economy froze.
e. Herbert Hoover was elected president – “prosperity is just around the corner”
i. He was wrong.
ii. By 1932 – 25% of the population was unemployed.
iii. People stood in lines for meals.
3. Hard Times – THE GREAT DEPRESSION
i. The 1930’s – a decade referred to as the Great Depression
1. Depression – is a time when the economy does not grow, so people lose their jobs and have little money.
ii. Many people went to bed hungry.
iii. There was a large gap between the poor and rich.
iv. People suffered because there were no government programs to help the struggling people.
v. The Dust Bowl
1. An area in the southern Great Plains where huge dust storms occurred. Thousands of families left this region.
4. The New Deal
i. In 1932 – FDR was elected president.
ii. Putting People to Work
1. Social Security Act – a program that pays money to people after they retire.
2. TVA, Tennessee Valley Authority – built a series of dams in the SE United States
3. CCC, Civilian Conservation Corps – gave jobs to young people. They worked on conservation projects in national parks and in wilderness areas. Planted trees, built shelters, made hiking trails.
4. WPA, Works Progress Administration – built roads, hospitals, and parks. Provided jobs for artists and writers, musicians.
iii. Effects of the New Deal
1. Not all programs worked, the above ones did. There were man y more.
2. The New Deal made the government bigger
a. Bureaucracy – the workers and groups that run the government.
3. FDR – first president to use radio – had ‘fireside chats’
a. He was so well liked – re-elected three times. He was the only president to have been elected to four terms.