Sandra Tague Oct-2012 History Lesson-Economic Factors of the 1920s The 1920s in America: Boom or bust for the

average Joe? Engage: What happened to the economy in the 1920s? How did life change in the 1920s to alter the way we live? Explore: In 1920, the USA was in a post WWI depression- demand for food, and artillery, etc., to support WWI evaporated. GNP in 1921 was $69 billion; unemployment was close to 12%. GNP in 1924 climbed to $93 billion and unemployment fell to 5%. In 1928 (pre-crash), GNP hit $100 billion and unemployment fell to 3.7%. Average weekly wages for average people did not change significantly. Explain: Interpret statistical charts for GNP, CPI, and average workers wages during the 1920s. Understand the fundamental shifts in society in the 1920s: 19th Amendment women can vote. Nativism notion that native born Americans were superior. A backlash against immigrants. White Anglo-Americans, descendants of Northern Europeans became a minority by 1920. Prohibition 1920 1933 Gin Joints and speakeasies organized crime How manufacturing changed EVERYTHING. Elaborate: Economy 1918-1920- post WWI depression marked by steep unemployment and depressed Gross National Product (the value of all goods produced in a year.) Economic despair! 1921- 1928- Manufacturing radically changed our economy and the way we live. Electric refridgeration healthier eating habits increased life expectancy from 53 men/54 women to 58 men / 62 women. Manufacturing of inventions: cars, radios, refidgerators, washing machines, electric irons, other appliances, gave way to FREE TIME, especially for women. Advertising industry boomed to market all the new products, (including simple items such as Band Aids and Kleenex Tissues.) Building of skyscrapers (Empire State Building, Chrylser Building), bridges, houses, hotels.

Sandra Tague Oct-2012 History Lesson-Economic Factors of the 1920s Unemployment: 1921 was close to 12%, by 1924 was 5%, by 1928 was 3.7% GNP: 1921 $69 billion; 1924 $93 billion; 1928 $100 billion. In 1933, GNP hit a historic low of $6 billion. Political Factors: 1921-1923 President Warren Harding- Ran on a platform of normalcy. While he had several talented cabinet members, he also had a great deal of corruption within his administration. Backroom politics. Harding died in 1923. 1923-1928 President Calvin Coolidge- Keep cool with Coolidge. Period of material prosperity. Coolidge promoted isolation of foreign policy and tax cuts. He chose not to run in 1928. 1929 Herbert Hoover became our 31st president. He was faced with the stock market crash of 1929, followed by a deep depression marked by severe unemployment, low GNP Societal Shifts: 1920: ratification of the 19th Amendment gave women the right to vote. Women also gained freedom with the inventions of the washing machine, refridgerator, and other appliances that made housekeeping easier. Styles changed dramatically. Women tossed their corset and layers of clothing for loose fitting, shorter dresses, less restrictive undergarments, and bobbed hair styles. Art and Literature: Modernism- art in form and function reflected the industrialization going on throughout most of the developed world. A movement of writers focused on hard-drinking, high-living socialites. (Writers such as Hemingway, Faulkner, Fitzgerald. Lost Generation of American writers living in Paris.) Harlem Renaissance African-Americans moved from the south, outburst of creativity in music, literature, & art. Evaluate: Discuss: Do you see any parallels from the 1920s to the past 10 years? Is our economy different from that of the 1920s? In what ways?
What do you still want to know about life in the 1920s? Research your question through books and the internet. Write a summary. Give a 3-5 minute oral presentation to class.

Sandra Tague Oct-2012 History Lesson-Economic Factors of the 1920s An economists view In 1926, George Taylor of Wharton Business School, refuted the claim that the economy can be predicted by womens hemlines. Taylor claimed hemlines reflected the economy: in good economic times, women wanted to show off their silk stockings, so hemlines went up. In poor economic times, women did not have silk stockings, so hemlines dropped. Some like to correlate the two, saying when hemlines go up, so does the economy. Likewise, when skirt hems drop, so does the economy, with a 3-4 year lag time. What do you think?

See Graphs on following pages:

Sandra Tague Oct-2012 History Lesson-Economic Factors of the 1920s

Sandra Tague Oct-2012 History Lesson-Economic Factors of the 1920s