Post on 26-Mar-2015
Chapter 12 Part IIMass consumption and
cultural values
A Booming Economy: The 1920’s
Income increases
People purchase more goods
Companies earn higher profits
Companies expand and hire more people
“Boom Cycle”
Threats to Traditional Values
• Emergence of urban culture• Focus on amusements
autos, radio, phonographs, movies, major league sports, new dances, jazz
Question:How would your life be different without
the automobile? In your notes, list at least 10 ways.
The Automobile
•Ford’s development of assembly line: item on conveyer belt moves past worker; worker does one part of process
•Model T developed
•Allows for development of cheap, plentiful cars
•Auto within reach of middle class instead of just luxury item for rich
Henry Ford
Ex.) Model-T 1909 - $850
1916 - $360
1924 - $290
· The efficiency of the assembly line helped to decrease car prices.
Automobile
• Boosts economy• Transforms society• During ’20s, automobile
production increases 3X• More mobile way of life:
suburban living, travel to new places, contact with other ways of life
• Stimulates other industries
• Increases social problems
• Reliance on family car• Suburban way of life:
road-buildingattracted
• Improvements in public transportation: growth of cities
New Industries
oilrubber
gasolinesteel
Hotels/motelsrestaurants
* Employment and the standard of living increased.
* As World War I ended, technology focused on consumer goods. Ex) radios, washing machines, telephones, and cars
* An increase in wages caused an increase in buying power.
1925 RCA Radiola Super VIII
RADIO COMES OF AGE
Although print media was popular, radio was the most powerful communications medium to emerge in the 1920s.
News was delivered faster and to a larger audience.
Americans could hear the voice of the president or listen to the World Series live.
Increased Consumption
• Advertising• Installment buying
· In the 1920’s, people began to purchase items they couldn’t afford through the use of installment buying, or buying on credit.
New Goods for Sale
· Installment buying increased the demand for goods, while consumer debt increased.
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· In the 1920’s businesses used advertising to convince consumers that they would be happier if they bought their product.
Advertising
Advertising
FADS
Ex.) dance marathons, flagpole sitting
1920’s: Fads and Fashions
• Fads caught on quickly during the 1920’s.
• Flapper – young woman in the 1920’s who declared her independence from traditional rules.
How did flappers rebel against traditional ways of thinking?
drank alcohol in speakeasies
How did flappers rebel against traditional ways of thinking?
danced at jazz clubs
FootballRed Grange: first college star to go into new professional football
Yale Bowl (v. Harvard), 1920s
Notre Dame v. Army 1920s
“Four Horsemen of the Apocalypse”, Notre Dame backfield
Baseball
1927 Yankees with Babe RuthSwept the World Series
LOU GERHIG
“Babe” Ruth
PROHIBITION
PROHIBITION One example of the
clash between city & farm was the passage of the 18th Amendment in 1920. Launched era known
as Prohibition
Made it illegal to make, distribute, sell, transport or consume liquor.
Prohibition lasted from 1920 to 1933 when it was repealed
by the 21st Amendment
SPEAKEASIES AND BOOTLEGGERS
Many Americans did not believe drinking was a sin
Most immigrant groups were not willing to give up drinking
To obtain liquor, drinkers went underground to hidden saloons known as speakeasies
People also bought liquor from bootleggers who smuggled it in from Canada, Cuba and the West Indies
• All of these activities became closely affiliated with …
Speakeasies
ORGANIZED CRIME
Prohibition contributed to the growth of organized crime in every major city
Al Capone – Chicago, Illinois famous bootlegger “Scarface” 60 million yr (bootleg alone)
Capone took control of the Chicago liquor business by killing off his competition Talent for avoiding jail 1931 sent to prision for tax-
evasion.Al Capone was finally convicted on tax evasion charges in 1931
St. Valentine’s Day Massacre
• Valentines Day – February 14, 1929
• Rival between Al Capone and Bugs Moran– Capone – South Side
Italian gang– Moran – North Side Irish
gang
• Bloody murder of 7 of Moran’s men.– Capone’s men dressed as
cops
GOVERNMENT FAILS TO CONTROL LIQUOR
Prohibition failed: Why? Government did not
budget enough money to enforce the law
The task of enforcing Prohibition fell to 1,500 poorly paid federal agents --- clearly an impossible task!
Federal agents pour wine down a sewer
SUPPORT FADES, PROHIBITION REPEALED
By the mid-1920s, only 19% of Americans supported Prohibition
Many felt Prohibition caused more problems than it solved What problems did it
cause?
The 21st Amendment finally repealed Prohibition in 1933
How does the stock market work?
You buy 100 shares of stock ofx $5.00 per shareHow much money
have you invested? $500.00
Scenario #1
stock increases to $20 per share
100 shares of stockx $20.00 per share
How much are your 100 shares of stock now worth?
$2,000.00
How much profit have you made?
$2,000.00 stock value
- $500.00 initial investment
$1,500.00 net profit
How does the stock market work?
You buy 100 shares of stock ofx $5.00 per shareHow much money
have you invested? $500.00
Scenario #2
stock decreases to $1 per share
100 shares of stockx $1 per share
How much are your 100 shares of stock now worth?
$100.00
How much money have you lost? $100.00 stock value
- $500.00 initial investment
$400.00 net loss
· Millions of Americans invested in the bull market, becoming rich as stock prices rose.
Stocks Surge
Dow Jones IndexJanuary 1921 to September, 1929
Panic on Wall StreetBlack Tuesday:
The market loses over ½ its value in a week
* Unquestioned faith in the bull market helped lead to the Great Depression!
· Some people began to buy stocks on margin, which is similar to installment buying.