the “roaring twenties” 11:30 massconsumptionsociety.2

The Roaring Twenties 11:30

MassConsumptionSociety.2

While mass production and mass consumption were born in the 1800s, Henry Ford took them to a whole new level in the early 1900s with the assembly line process where a cars frame moved along a conveyor belt and workers stationed along it would attach various parts to it until by the end of the line it was a complete car. Although for workers, such repetition could be mind-deadening, it was also very efficient, cranking out a new car every five minutes. Such a technique also forced the production of a more standardized product. As Ford put it, you could have a car in any color you liked, as long as it was black.

This had two major effects. It lowered the price of building a car and thus the price Ford could charge for a new car, vastly expanding the potential market for his cars. Secondly, it raised profits which allowed Ford to pay his workers more, thus creating an even bigger market that could afford his cars. Not only did other car manufacturers, most notably General Motors, adopt the assembly line production, so did other types of products, which just accelerated the process toward a more widely based mass consumption society.

An Age of Mass Media One of the great innovations of the century was the revolution in reproducing sound. For the first time, people could listen to music without having to make it or listen to it live. The gramophone, as it was then called, was the progenitor of all our modern stereos, including the personal stereo. It also began a trend with music, much like the printing press had 450 years earlier, of making its enjoyment a much less social, as well as more passive, experience. Later innovations, such as the iPod, would accelerate this tendency to fragment society in favor of more private experiences

Talkies. In 1927, the first movie with sound, The Jazz Singer, debuted. Although the parts with Al Jolsons singing were the only scenes with sound, The Jazz Singer set a new standard for movies, and silent films were soon a thing of the past. The two faces in the middle are both Al Jolson, one of them in blackface, a popular stereotype of African Americans from the 1830s until the Civil Rights movement in the 1960s. A montage of such stereotypes in the twentieth century from Spike Lees movie, Bamboozled,can be seen at http:// www.youtube.com/watch?v=C45g3Y P7JOk http:// www.youtube.com/watch?v=C45g3Y P7JOk

So were a lot of silent film stars. For one thing, some of them didnt have voices suited for talkies. Also, the new type of film required a new more natural and subdued style of acting, because the exaggerated gestures of silent films were no longer needed. Movies from the late 1920s and early 1930s, such as the Oscar winning All Quiet on the Western Front, reflect this transition, being more natural than older silent films, but still retaining a bit of their more exaggerated gestures and blocking.

Early films and sound recordings also tended to play back a bit fast, creating a higher pitch and tinny quality to the voices. Only in recent years have the recordings of early blues musicians, such as Robert Johnson, been re-mastered for proper pitch.

Radio came into its own, especially with regular commercial broadcasting in the late 1920s and became a fixture in millions of homes. In one sense, it helped create a more global community as people listened to the same entertainment and news (starting in the 1930s) 1926

In another sense, radio created less of a sense of local community as families stayed at home gathered around the radio. Like the phonograph, it also made listening to music a more passive and private experience instead of an active and social one. Radio also provided a medium for politicians to spread their messages to millions of people at once, however benign or malicious those messages might be.

Architects such as Frank Lloyd Wright tried to counter this trend away from the social and toward the private realm by designing houses with small bedrooms to force people together into a central space. However, other inventions in the twentieth century, such as television, portable record players, personal stereos, and air conditioning, would further separate families from their communities and family members from each other. Left: Wrights Falling Waters House Below: Vandamm House

Left & below Below: Wrights Massaro lakehouse just finished in 2007

Massaro House counter- clockwise from left: Kitchen, drawing room, and skylight

Massaro House: The living room, a large open space to encourage people coming together.

Massaro House: Bedrooms, including the master bedroom below

Power to the people. The new technology of the 1920s (light bulbs, telephones, radios, movies, vacuum cleaners, and even lie detectors) all had one thing in common. They ran on electricity. At first, power was produced by small generators for a limited market at high prices. The belief then was that each street or family needed its own generator. One problem with electricity was that it couldnt be stored, thus making it expensive and limiting its market to a few wealthy people. For example, Chicago in the 1890s had twenty generators serving only 5,000 customers. 1926

Enter British-born Samuel Insull (1859-1938, who, after working for Thomas Edison, moved to Chicago in 1892. Using more efficient steam turbine generators (that could be stepped up at little cost during times of peak need) Insull saw that if he could generate electricity for large numbers of customers, he could count on more consistent demand, operate more efficiently with less waste, and charge lower prices per kilowatt. The lower prices would attract more customers, allowing him to expand his operations, and so on. 1926

Insull also expanded his customer base by wiring houses cheaply & giving away electric appliances. By the late 1920s, he had wired Chicago, the state of Illinois, & 4,000,000 customers in thirty-two states. Thanks largely to his vision, cheap electrical power became available to the masses as the price of electricity per kilowatt (adjusted to 1992 dollars) went from $4 in 1892 to $1.56 in 1912 to 55 in 1927 to 9 in 1967. Insull built the Civic Opera House in Chicago in 1929. It was built in the shape of a throne facing west, away from New York City, which had supposedly spurned his efforts.

From capitalist hero to villain. To finance his enterprises, Insull had sold low-price bonds and stocks to over a million middle-class Americans. Unfortunately the stock market crash of 1929 made their investments worthless, and almost overnight Insull went from hero to villain, owing $16 million dollars more than he was worth, making him "too broke to be bankrupt, as one banker put it. In 1934, he was charged with fraud, acquitted of the charges, and moved to Paris where he died in 1938. May, 1934 1923

Girls just want to have fun: The New Woman of the 1920s

Flappers. The new modern women of the 1920s not only had the vote, but an unprecedented amount of social freedom. While most women still followed more traditional roles and lifestyles, there were a number of young women, typically referred to as flappers, who exhibited a freer lifestyle than ever before.

A flapper was typically urban, single, socially free, and affluent enough to pursue such a life, either from having her own job or an indulgent father (known commonly as a dapper).

The flappers hair was short, typically in a pageboy cut known as a bob. Her dresses were loose (thanks to the demise of the corset) and also short, showing an unprecedented amount of leg up to and even above the knee. Adding to the more liberated and waif-like image was a preference for a more flat chested look to de- emphasize more traditional female roles. This is a trend that has alternated with the more full- bodied look ever since.

She tended to wear a good deal of eye makeup, something only women of ill repute were previously allowed to do. Thus for women in the 1920s, wearing makeup was seen as liberating. A flapper might even be a smoke-eater (i.e., woman who smokes cigarettes).

Flapper speak. Along with the flappers new lifestyle came a profusion of new words and expressions. Below are a few select terms that suggest womens rapidly changing status and attitudes in the twentieth century: Petting party- Social event devoted to hugging Snugglepup- Man who likes petting parties Alarm clock- A chaperone Father time- Any man over 30 years old Fire alarm- A divorced woman They- refers to objecting parents Cat's Pajamas or Frog's eyebrows- Anything that's good Goof-Flapper's sweetheart Biscuit- A pettable flapper Barney-muggin- Love-making Drop the pilot- Get a divorce Police-dog- Young woman's fianc Handcuff- Engagement ring An alibi- A box of flowers Forty-niner- Man prospecting for a rich wife Strike breaker- A woman who dates a friend's "steady" during a coolness Mad money- Carfare home if she has a fight with her escort

Coco Chanel, a French orphan who revolutionized womens fashions in the 1920s by introducing clothing that felt as good as it looked. Among her innovations were sports clothes, red lipstick, bobbed hair, and even trousers for women.

Leisure fashions from the 1920s, including ski chic.

From the early 1920s to the early 1930s the standard head gear for women was the cloche hat. One side effect of this was the much shorter hair styles for women in the 1920s.

The flappers of the 1920s shocked their mothers by showing their natural shapes. Left & right: Louise Brooks & Colleen Moore, two very modern looking & extremely popular silent film stars of the 1920s, who popularized bobbed hair, but are barely remembered now.

Colleen Moore is best remembered today for her fairy castle dollhouse which resides in Chicagos Museum of Science and Industry.

Cocktails and Prohibition The 18 th Amendment (1920), which prohibited alcohol production and consumption in America, can be said to have been another (fleeting) victory for women, since it was largely pushed by women suffering neglect and abuse because of their husbands alcoholism. However, Prohibition hardly slowed down alcohol production or consumption. It merely made it the realm of gangsters, such as Al Capone in Chicago, and illegal bars, known as speakeasies, where one could buy bathtub gin. Below: a cocktail flapper and other examples of the wild nightclub life of speakeasies in the 1920s.

Due to the typically poor quality of these drinks, they were often mixed with each other and different beverages. Thus was born the cocktail. With the cocktail, a new character appeared on the social scene: the bartender who knew the secrets of mixing the hundred or so new drinks made popular at the time. In addition, really good bartenders had their own secret formulas for cocktails that made them especially popular. There was even a novel, Poets Pub by Eric Linklater about people trying to track down a bartender with the formula to the Blue Cocktail.

By 1933 Prohibition had proved to be such a dismal failure that it was repealed by the 21 st Amendment. Below: Al Capone and the scene of the infamous St Valentines Day Massacre in 1929 which brought him the unwanted attention of the federal government.

But not all women were as liberated as the flappers. Left: My grandmother (center) and grandfather (c.1920). He was a popular vaudeville star who ran off with another woman, leaving my grandmother as a single mom in the 1920s to raise my mother (the two of them pictured lower right, c.1920).

FC.131 POST WAR BOOM AND BUST (1920-29) US loans & sales to Eur. Unbalanced $ flow to US for loans, goods & resources Stock mkt craze in US where investors pay only 10% down & borrow rest from banks at 10-15% interest Stocks must rise 10-15%/yr to break even Investors prone to panic selling at 1st sign of trouble Tariffs to protect home mkts Higher prices & heavier competition fewer mkts Agr. Boom in US from selling grain to Eur. Agr. prices fall in 1920s when Eur. can feed itself again Agr crisis in US when farmers cant pay mortgages on land bought during the war Unstable world econ. in 1920s despite illusion of prosperity Loss of faith in econ. Cut production Loss of jobs & consumers Less buying & investment Panic selling Stocks drop After-effects of World War I on world economy (FC.128) US takes over many Eur. Mkts (FC.128) Eurs rebuild inds, but dont reclaim mkts (FC.128) Worldwide depression (FC.132) 5000 US banks, which over-invested in stock mkt, crash Eur. Banks crash when US banks call in loans

FC.93A TULIPMANIA: THE FIRST MODERN SPECULATIVE BOOM (1636-37) Rich look for new ways to spend money Botany & gardening fashionable among the rich Scientific Rev. of 1600s More interest in science (FC.97) Printing press circulation of new scientific findings (FC.74) Trade w/Turks Tulips reach Antwerp by 1562 (FC.93) Growing speculative market in tulips Demand increases while supply remains constant Prices paid for tulips dramatically & rapidly rise Panic since so many borrowed to buy Sudden collapse of tulipmania Buy bulbs on basis of future profits Danger of debt Buy bulbs w/goods, land, & even a trade ship for 1 bulb Genes for most beautiful designs are recessive Unlikely a bulb will produce the desired design Eventually, people see tulips are extremely over- priced Everyone wants to sell No demand Prices rapidly drop Age of Explor. New mkts & sources of $ (FC.81) Allure of eastern goods, scarcity of tulips, & little need for capital investment Lucrative to grow & trade them Tulips slowly reproduce Ltd. supply Difficult for artisans to make profit

What typically happens to economies right after a war & why?

A Post-war depression FC.131 POST WAR BOOM AND BUST (1920-29) After-effects of World War I on world economy (FC.128)

A Post-war depression -France: 500% inflation FC.131 POST WAR BOOM AND BUST (1920-29) After-effects of World War I on world economy (FC.128)

A Post-war depression -France: 500% inflation -Low birth rate FC.131 POST WAR BOOM AND BUST (1920-29) After-effects of World War I on world economy (FC.128)

A Post-war depression -France: 500% inflation -Low birth rate Slower pop. recovery FC.131 POST WAR BOOM AND BUST (1920-29) After-effects of World War I on world economy (FC.128)

A Post-war depression -France: 500% inflation -Low birth rate Slower pop. recovery -More agr. Econ Ind econ less affected by Depr. FC.131 POST WAR BOOM AND BUST (1920-29) After-effects of World War I on world economy (FC.128)

A Post-war depression -France: 500% inflation -Low birth rate Slower pop. recovery -More agr. Econ Ind econ less affected by Depr. -Br exports to Fr down 65% & to US 42.6% by 1921 FC.131 POST WAR BOOM AND BUST (1920-29) After-effects of World War I on world economy (FC.128)

A Post-war depression -France: 500% inflation -Low birth rate Slower pop. recovery -More agr. Econ Ind econ less affected by Depr. -Br exports to Fr down 65% & to US 42.6% by 1921 -Irish rev Indep (1937) FC.131 POST WAR BOOM AND BUST (1920-29) After-effects of World War I on world economy (FC.128)

A Post-war depression -France: 500% inflation -Low birth rate Slower pop. recovery -More agr. Econ Ind econ less affected by Depr. -Br exports to Fr down 65% & to US 42.6% by 1921 -Irish rev Indep (1937) New products & techs FC.131 POST WAR BOOM AND BUST (1920-29) After-effects of World War I on world economy (FC.128)

FC.131 POST WAR BOOM AND BUST (1920-29) After-effects of World War I on world economy (FC.128) A Post-war depression -France: 500% inflation -Low birth rate Slower pop. recovery -More agr. Econ Ind econ less affected by Depr. -Br exports to Fr down 65% & to US 42.6% by 1921 -Irish rev Indep (1937) New products & techs -Refrigeration, comm. air travel, talking films, radio, vacuum cleaners, cars

A Post-war depression -France: 500% inflation -Low birth rate Slower pop. recovery -More agr. Econ Ind econ less affected by Depr. -Br exports to Fr down 65% & to US 42.6% by 1921 -Irish rev Indep (1937) New products & techs -Refrigeration, comm. air travel, talking films, radio, vacuum cleaners, cars -80% new inds in US FC.131 POST WAR BOOM AND BUST (1920-29) After-effects of World War I on world economy (FC.128)

A Post-war depression -France: 500% inflation -Low birth rate Slower pop. recovery -More agr. Econ Ind econ less affected by Depr. -Br exports to Fr down 65% & to US 42.6% by 1921 -Irish rev Indep (1937) New products & techs -Refrigeration, comm. air travel, talking films, radio, vacuum cleaners, cars -80% new inds in US FC.131 POST WAR BOOM AND BUST (1920-29) US loans & sales to Eur. Unbalanced $ flow to US for loans, goods & resources After-effects of World War I on world economy (FC.128) US takes over many Eur. Mkts (FC.128)

A Post-war depression -France: 500% inflation -Low birth rate Slower pop. recovery -More agr. Econ Ind econ less affected by Depr. -Br exports to Fr down 65% & to US 42.6% by 1921 -Irish rev Indep (1937) New products & techs -Refrigeration, comm. air travel, talking films, radio, vacuum cleaners, cars -80% new inds in US Fr & Br relied on $ fr. Ger FC.131 POST WAR BOOM AND BUST (1920-29) US loans & sales to Eur. Unbalanced $ flow to US for loans, goods & resources After-effects of World War I on world economy (FC.128) US takes over many Eur. Mkts (FC.128)

A Post-war depression -France: 500% inflation -Low birth rate Slower pop. recovery -More agr. Econ Ind econ less affected by Depr. -Br exports to Fr down 65% & to US 42.6% by 1921 -Irish rev Indep (1937) New products & techs -Refrigeration, comm. air travel, talking films, radio, vacuum cleaners, cars -80% new inds in US Fr & Br relied on $ fr. Ger Ger relied on $ from US FC.131 POST WAR BOOM AND BUST (1920-29) US loans & sales to Eur. Unbalanced $ flow to US for loans, goods & resources After-effects of World War I on world economy (FC.128) US takes over many Eur. Mkts (FC.128)

A Post-war depression -France: 500% inflation -Low birth rate Slower pop. recovery -More agr. Econ Ind econ less affected by Depr. -Br exports to Fr down 65% & to US 42.6% by 1921 -Irish rev Indep (1937) New products & techs -Refrigeration, comm. air travel, talking films, radio, vacuum cleaners, cars -80% new inds in US Fr & Br relied on $ fr. Ger Ger relied on $ from US $3.5B invested in Eur, $1B alone in Ger. FC.131 POST WAR BOOM AND BUST (1920-29) US loans & sales to Eur. Unbalanced $ flow to US for loans, goods & resources After-effects of World War I on world economy (FC.128) US takes over many Eur. Mkts (FC.128)

British dominance of world trade in 1800s

Britain Raw materials Manufactured goods

U.S. dominance of world trade in early 1900s U.S. Raw materials $$$$$$$ Manufactured goods $$$$$$$ LOAN$$$ $$$$$$$$$$

A Post-war depression -France: 500% inflation -Low birth rate Slower pop. recovery -More agr. Econ Ind econ less affected by Depr. -Br exports to Fr down 65% & to US 42.6% by 1921 -Irish rev Indep (1937) New products & techs -Refrigeration, comm. air travel, talking films, radio, vacuum cleaners, cars -80% new inds in US Fr & Br relied on $ fr. Ger Ger relied on $ from US $3.5B invested in Eur, $1B alone in Ger. FC.131 POST WAR BOOM AND BUST (1920-29) US loans & sales to Eur. Unbalanced $ flow to US for loans, goods & resources After-effects of World War I on world economy (FC.128) US takes over many Eur. Mkts (FC.128)

A Post-war depression -France: 500% inflation -Low birth rate Slower pop. recovery -More agr. Econ Ind econ less affected by Depr. -Br exports to Fr down 65% & to US 42.6% by 1921 -Irish rev Indep (1937) New products & techs -Refrigeration, comm. air travel, talking films, radio, vacuum cleaners, cars -80% new inds in US Fr & Br relied on $ fr. Ger Ger relied on $ from US $3.5B invested in Eur, $1B alone in Ger. FC.131 POST WAR BOOM AND BUST (1920-29) US loans & sales to Eur. Unbalanced $ flow to US for loans, goods & resources After-effects of World War I on world economy (FC.128) US takes over many Eur. Mkts (FC.128) Eurs rebuild inds, but dont reclaim mkts (FC.128)

A Post-war depression -France: 500% inflation -Low birth rate Slower pop. recovery -More agr. Econ Ind econ less affected by Depr. -Br exports to Fr down 65% & to US 42.6% by 1921 -Irish rev Indep (1937) New products & techs -Refrigeration, comm. air travel, talking films, radio, vacuum cleaners, cars -80% new inds in US Fr & Br relied on $ fr. Ger Ger relied on $ from US $3.5B invested in Eur, $1B alone in Ger. FC.131 POST WAR BOOM AND BUST (1920-29) US loans & sales to Eur. Unbalanced $ flow to US for loans, goods & resources Tariffs to protect home mkts Higher prices & heavier competition fewer mkts After-effects of World War I on world economy (FC.128) US takes over many Eur. Mkts (FC.128) Eurs rebuild inds, but dont reclaim mkts (FC.128)

FC.131 POST WAR BOOM AND BUST (1920-29) US loans & sales to Eur. Unbalanced $ flow to US for loans, goods & resources Tariffs to protect home mkts Higher prices & heavier competition fewer mkts After-effects of World War I on world economy (FC.128) US takes over many Eur. Mkts (FC.128) Eurs rebuild inds, but dont reclaim mkts (FC.128) A Post-war depression -France: 500% inflation -Low birth rate Slower pop. recovery -More agr. Econ Ind econ less affected by Depr. -Br exports to Fr down 65% & to US 42.6% by 1921 -Irish rev Indep (1937) New products & techs -Refrigeration, comm. air travel, talking films, radio, vacuum cleaners, cars -80% new inds in US Fr & Br relied on $ fr. Ger Ger relied on $ from US $3.5B invested in Eur, $1B alone in Ger. Typical way to protect Mkts?

FC.131 POST WAR BOOM AND BUST (1920-29) US loans & sales to Eur. Unbalanced $ flow to US for loans, goods & resources Tariffs to protect home mkts Higher prices & heavier competition fewer mkts After-effects of World War I on world economy (FC.128) US takes over many Eur. Mkts (FC.128) Eurs rebuild inds, but dont reclaim mkts (FC.128) A Post-war depression -France: 500% inflation -Low birth rate Slower pop. recovery -More agr. Econ Ind econ less affected by Depr. -Br exports to Fr down 65% & to US 42.6% by 1921 -Irish rev Indep (1937) New products & techs -Refrigeration, comm. air travel, talking films, radio, vacuum cleaners, cars -80% new inds in US Fr & Br relied on $ fr. Ger Ger relied on $ from US $3.5B invested in Eur, $1B alone in Ger. Prices & their effect?

A Post-war depression -France: 500% inflation -Low birth rate Slower pop. recovery -More agr. Econ Ind econ less affected by Depr. -Br exports to Fr down 65% & to US 42.6% by 1921 -Irish rev Indep (1937) New products & techs -Refrigeration, comm. air travel, talking films, radio, vacuum cleaners, cars -80% new inds in US Fr & Br relied on $ fr. Ger Ger relied on $ from US $3.5B invested in Eur, $1B alone in Ger. FC.131 POST WAR BOOM AND BUST (1920-29) US loans & sales to Eur. Unbalanced $ flow to US for loans, goods & resources Tariffs to protect home mkts Higher prices & heavier competition fewer mkts After-effects of World War I on world economy (FC.128) US takes over many Eur. Mkts (FC.128) Eurs rebuild inds, but dont reclaim mkts (FC.128)

FC.131 POST WAR BOOM AND BUST (1920-29) US loans & sales to Eur. Unbalanced $ flow to US for loans, goods & resources Tariffs to protect home mkts Higher prices & heavier competition fewer mkts Agr. Boom in US from selling grain to Eur. After-effects of World War I on world economy (FC.128) US takes over many Eur. Mkts (FC.128) Eurs rebuild inds, but dont reclaim mkts (FC.128) A Post-war depression -France: 500% inflation -Low birth rate Slower pop. recovery -More agr. Econ Ind econ less affected by Depr. -Br exports to Fr down 65% & to US 42.6% by 1921 -Irish rev Indep (1937) New products & techs -Refrigeration, comm. air travel, talking films, radio, vacuum cleaners, cars -80% new inds in US Fr & Br relied on $ fr. Ger Ger relied on $ from US $3.5B invested in Eur, $1B alone in Ger. Grain prices after WWI?

A Post-war depression -France: 500% inflation -Low birth rate Slower pop. recovery -More agr. Econ Ind econ less affected by Depr. -Br exports to Fr down 65% & to US 42.6% by 1921 -Irish rev Indep (1937) New products & techs -Refrigeration, comm. air travel, talking films, radio, vacuum cleaners, cars -80% new inds in US Fr & Br relied on $ fr. Ger Ger relied on $ from US $3.5B invested in Eur, $1B alone in Ger. 1916-26- $1.90->$1.12/ bushel FC.131 POST WAR BOOM AND BUST (1920-29) US loans & sales to Eur. Unbalanced $ flow to US for loans, goods & resources Tariffs to protect home mkts Higher prices & heavier competition fewer mkts Agr. Boom in US from selling grain to Eur. Agr. prices fall in 1920s when Eur. can feed itself again After-effects of World War I on world economy (FC.128) US takes over many Eur. Mkts (FC.128) Eurs rebuild inds, but dont reclaim mkts (FC.128)

FC.131 POST WAR BOOM AND BUST (1920-29) US loans & sales to Eur. Unbalanced $ flow to US for loans, goods & resources Tariffs to protect home mkts Higher prices & heavier competition fewer mkts Agr. Boom in US from selling grain to Eur. Agr. prices fall in 1920s when Eur. can feed itself again Agr crisis in US when farmers cant pay mortgages on land bought during the war After-effects of World War I on world economy (FC.128) US takes over many Eur. Mkts (FC.128) Eurs rebuild inds, but dont reclaim mkts (FC.128) A Post-war depression -France: 500% inflation -Low birth rate Slower pop. recovery -More agr. Econ Ind econ less affected by Depr. -Br exports to Fr down 65% & to US 42.6% by 1921 -Irish rev Indep (1937) New products & techs -Refrigeration, comm. air travel, talking films, radio, vacuum cleaners, cars -80% new inds in US Fr & Br relied on $ fr. Ger Ger relied on $ from US $3.5B invested in Eur, $1B alone in Ger. 1916-26- $1.90->$1.12/ bushel

A farmer faces foreclosure and forcible eviction from his land. Although this was a scene commonly associated with the Great Depression in the 1930s, it was part of a pattern starting in the 1920s when grain prices plummeted after the end of World War I.

A Post-war depression -France: 500% inflation -Low birth rate Slower pop. recovery -More agr. Econ Ind econ less affected by Depr. -Br exports to Fr down 65% & to US 42.6% by 1921 -Irish rev Indep (1937) New products & techs -Refrigeration, comm. air travel, talking films, radio, vacuum cleaners, cars -80% new inds in US Fr & Br relied on $ fr. Ger Ger relied on $ from US $3.5B invested in Eur, $1B alone in Ger. 1916-26- $1.90->$1.12/ bushel FC.131 POST WAR BOOM AND BUST (1920-29) US loans & sales to Eur. Unbalanced $ flow to US for loans, goods & resources Tariffs to protect home mkts Higher prices & heavier competition fewer mkts Agr. Boom in US from selling grain to Eur. Agr. prices fall in 1920s when Eur. can feed itself again Agr crisis in US when farmers cant pay mortgages on land bought during the war Unstable world econ. in 1920s despite illusion of prosperity After-effects of World War I on world economy (FC.128) US takes over many Eur. Mkts (FC.128) Eurs rebuild inds, but dont reclaim mkts (FC.128)

FC.131 POST WAR BOOM AND BUST (1920-29) US loans & sales to Eur. Unbalanced $ flow to US for loans, goods & resources Stock mkt craze in US where investors pay only 10% down & borrow rest from banks at 10-15% interest Stocks must rise 10-15%/yr to break even Investors prone to panic selling at 1st sign of trouble Tariffs to protect home mkts Higher prices & heavier competition fewer mkts Agr. Boom in US from selling grain to Eur. Agr. prices fall in 1920s when Eur. can feed itself again Agr crisis in US when farmers cant pay mortgages on land bought during the war Unstable world econ. in 1920s despite illusion of prosperity After-effects of World War I on world economy (FC.128) US takes over many Eur. Mkts (FC.128) Eurs rebuild inds, but dont reclaim mkts (FC.128) A Stock mkt craze in US where investors pay only 10% down & borrow rest from banks at 10-15% interest How much must stocks rise/yr to break even? Post-war depression -France: 500% inflation -Low birth rate Slower pop. recovery -More agr. Econ Ind econ less affected by Depr. -Br exports to Fr down 65% & to US 42.6% by 1921 -Irish rev Indep (1937) New products & techs -Refrigeration, comm. air travel, talking films, radio, vacuum cleaners, cars -80% new inds in US Fr & Br relied on $ fr. Ger Ger relied on $ from US $3.5B invested in Eur, $1B alone in Ger. 1916-26- $1.90->$1.12/ bushel

FC.131 POST WAR BOOM AND BUST (1920-29) US loans & sales to Eur. Unbalanced $ flow to US for loans, goods & resources Stock mkt craze in US where investors pay only 10% down & borrow rest from banks at 10-15% interest Stocks must rise 10-15%/yr to break even Investors prone to panic selling at 1st sign of trouble Tariffs to protect home mkts Higher prices & heavier competition fewer mkts Agr. Boom in US from selling grain to Eur. Agr. prices fall in 1920s when Eur. can feed itself again Agr crisis in US when farmers cant pay mortgages on land bought during the war Unstable world econ. in 1920s despite illusion of prosperity After-effects of World War I on world economy (FC.128) US takes over many Eur. Mkts (FC.128) Eurs rebuild inds, but dont reclaim mkts (FC.128) A Stock mkt craze in US where investors pay only 10% down & borrow rest from banks at 10-15% interest Stocks must rise 10-15%/yr to break even Psychology of investors? Post-war depression -France: 500% inflation -Low birth rate Slower pop. recovery -More agr. Econ Ind econ less affected by Depr. -Br exports to Fr down 65% & to US 42.6% by 1921 -Irish rev Indep (1937) New products & techs -Refrigeration, comm. air travel, talking films, radio, vacuum cleaners, cars -80% new inds in US Fr & Br relied on $ fr. Ger Ger relied on $ from US $3.5B invested in Eur, $1B alone in Ger. 1916-26- $1.90->$1.12/ bushel

A Post-war depression -France: 500% inflation -Low birth rate Slower pop. recovery -More agr. Econ Ind econ less affected by Depr. -Br exports to Fr down 65% & to US 42.6% by 1921 -Irish rev Indep (1937) New products & techs -Refrigeration, comm. air travel, talking films, radio, vacuum cleaners, cars -80% new inds in US Fr & Br relied on $ fr. Ger Ger relied on $ from US $3.5B invested in Eur, $1B alone in Ger. 1916-26- $1.90->$1.12/ bushel FC.131 POST WAR BOOM AND BUST (1920-29) US loans & sales to Eur. Unbalanced $ flow to US for loans, goods & resources Stock mkt craze in US where investors pay only 10% down & borrow rest from banks at 10-15% interest Stocks must rise 10-15%/yr to break even Investors prone to panic selling at 1st sign of trouble Tariffs to protect home mkts Higher prices & heavier competition fewer mkts Agr. Boom in US from selling grain to Eur. Agr. prices fall in 1920s when Eur. can feed itself again Agr crisis in US when farmers cant pay mortgages on land bought during the war Unstable world econ. in 1920s despite illusion of prosperity After-effects of World War I on world economy (FC.128) US takes over many Eur. Mkts (FC.128) Eurs rebuild inds, but dont reclaim mkts (FC.128)

A Post-war depression -France: 500% inflation -Low birth rate Slower pop. recovery -More agr. Econ Ind econ less affected by Depr. -Br exports to Fr down 65% & to US 42.6% by 1921 -Irish rev Indep (1937) New products & techs -Refrigeration, comm. air travel, talking films, radio, vacuum cleaners, cars -80% new inds in US Fr & Br relied on $ fr. Ger Ger relied on $ from US $3.5B invested in Eur, $1B alone in Ger. 1916-26- $1.90->$1.12/ bushel Cash & Credit (1920-29) FC.131 POST WAR BOOM AND BUST (1920-29) US loans & sales to Eur. Unbalanced $ flow to US for loans, goods & resources Stock mkt craze in US where investors pay only 10% down & borrow rest from banks at 10-15% interest Stocks must rise 10-15%/yr to break even Investors prone to panic selling at 1st sign of trouble Tariffs to protect home mkts Higher prices & heavier competition fewer mkts Agr. Boom in US from selling grain to Eur. Agr. prices fall in 1920s when Eur. can feed itself again Agr crisis in US when farmers cant pay mortgages on land bought during the war Unstable world econ. in 1920s despite illusion of prosperity After-effects of World War I on world economy (FC.128) US takes over many Eur. Mkts (FC.128) Eurs rebuild inds, but dont reclaim mkts (FC.128)

A Post-war depression -France: 500% inflation -Low birth rate Slower pop. recovery -More agr. Econ Ind econ less affected by Depr. -Br exports to Fr down 65% & to US 42.6% by 1921 -Irish rev Indep (1937) New products & techs -Refrigeration, comm. air travel, talking films, radio, vacuum cleaners, cars -80% new inds in US Fr & Br relied on $ fr. Ger Ger relied on $ from US $3.5B invested in Eur, $1B alone in Ger. 1916-26- $1.90->$1.12/ bushel Cash & Credit (1920-29) -Cash: $3.68B $3.64B FC.131 POST WAR BOOM AND BUST (1920-29) US loans & sales to Eur. Unbalanced $ flow to US for loans, goods & resources Stock mkt craze in US where investors pay only 10% down & borrow rest from banks at 10-15% interest Stocks must rise 10-15%/yr to break even Investors prone to panic selling at 1st sign of trouble Tariffs to protect home mkts Higher prices & heavier competition fewer mkts Agr. Boom in US from selling grain to Eur. Agr. prices fall in 1920s when Eur. can feed itself again Agr crisis in US when farmers cant pay mortgages on land bought during the war Unstable world econ. in 1920s despite illusion of prosperity After-effects of World War I on world economy (FC.128) US takes over many Eur. Mkts (FC.128) Eurs rebuild inds, but dont reclaim mkts (FC.128)

A Post-war depression -France: 500% inflation -Low birth rate Slower pop. recovery -More agr. Econ Ind econ less affected by Depr. -Br exports to Fr down 65% & to US 42.6% by 1921 -Irish rev Indep (1937) New products & techs -Refrigeration, comm. air travel, talking films, radio, vacuum cleaners, cars -80% new inds in US Fr & Br relied on $ fr. Ger Ger relied on $ from US $3.5B invested in Eur, $1B alone in Ger. 1916-26- $1.90->$1.12/ bushel Cash & Credit (1920-29) -Cash: $3.68B $3.64B ~1% drop FC.131 POST WAR BOOM AND BUST (1920-29) US loans & sales to Eur. Unbalanced $ flow to US for loans, goods & resources Stock mkt craze in US where investors pay only 10% down & borrow rest from banks at 10-15% interest Stocks must rise 10-15%/yr to break even Investors prone to panic selling at 1st sign of trouble Tariffs to protect home mkts Higher prices & heavier competition fewer mkts Agr. Boom in US from selling grain to Eur. Agr. prices fall in 1920s when Eur. can feed itself again Agr crisis in US when farmers cant pay mortgages on land bought during the war Unstable world econ. in 1920s despite illusion of prosperity After-effects of World War I on world economy (FC.128) US takes over many Eur. Mkts (FC.128) Eurs rebuild inds, but dont reclaim mkts (FC.128)

A Post-war depression -France: 500% inflation -Low birth rate Slower pop. recovery -More agr. Econ Ind econ less affected by Depr. -Br exports to Fr down 65% & to US 42.6% by 1921 -Irish rev Indep (1937) New products & techs -Refrigeration, comm. air travel, talking films, radio, vacuum cleaners, cars -80% new inds in US Fr & Br relied on $ fr. Ger Ger relied on $ from US $3.5B invested in Eur, $1B alone in Ger. 1916-26- $1.90->$1.12/ bushel Cash & Credit (1920-29) -Cash: $3.68B $3.64B ~1% drop -Credit: $45.3B FC.131 POST WAR BOOM AND BUST (1920-29) US loans & sales to Eur. Unbalanced $ flow to US for loans, goods & resources Stock mkt craze in US where investors pay only 10% down & borrow rest from banks at 10-15% interest Stocks must rise 10-15%/yr to break even Investors prone to panic selling at 1st sign of trouble Tariffs to protect home mkts Higher prices & heavier competition fewer mkts Agr. Boom in US from selling grain to Eur. Agr. prices fall in 1920s when Eur. can feed itself again Agr crisis in US when farmers cant pay mortgages on land bought during the war Unstable world econ. in 1920s despite illusion of prosperity After-effects of World War I on world economy (FC.128) US takes over many Eur. Mkts (FC.128) Eurs rebuild inds, but dont reclaim mkts (FC.128)

A Post-war depression -France: 500% inflation -Low birth rate Slower pop. recovery -More agr. Econ Ind econ less affected by Depr. -Br exports to Fr down 65% & to US 42.6% by 1921 -Irish rev Indep (1937) New products & techs -Refrigeration, comm. air travel, talking films, radio, vacuum cleaners, cars -80% new inds in US Fr & Br relied on $ fr. Ger Ger relied on $ from US $3.5B invested in Eur, $1B alone in Ger. 1916-26- $1.90->$1.12/ bushel Cash & Credit (1920-29) -Cash: $3.68B $3.64B ~1% drop -Credit: $45.3B $73B 61.8% rise FC.131 POST WAR BOOM AND BUST (1920-29) US loans & sales to Eur. Unbalanced $ flow to US for loans, goods & resources Stock mkt craze in US where investors pay only 10% down & borrow rest from banks at 10-15% interest Stocks must rise 10-15%/yr to break even Investors prone to panic selling at 1st sign of trouble Tariffs to protect home mkts Higher prices & heavier competition fewer mkts Agr. Boom in US from selling grain to Eur. Agr. prices fall in 1920s when Eur. can feed itself again Agr crisis in US when farmers cant pay mortgages on land bought during the war Unstable world econ. in 1920s despite illusion of prosperity After-effects of World War I on world economy (FC.128) US takes over many Eur. Mkts (FC.128) Eurs rebuild inds, but dont reclaim mkts (FC.128)

A Post-war depression -France: 500% inflation -Low birth rate Slower pop. recovery -More agr. Econ Ind econ less affected by Depr. -Br exports to Fr down 65% & to US 42.6% by 1921 -Irish rev Indep (1937) New products & techs -Refrigeration, comm. air travel, talking films, radio, vacuum cleaners, cars -80% new inds in US Fr & Br relied on $ fr. Ger Ger relied on $ from US $3.5B invested in Eur, $1B alone in Ger. 1916-26- $1.90->$1.12/ bushel Cash & Credit (1920-29) -Cash: $3.68B $3.64B ~1% drop -Credit: $45.3B $73B 61.8% rise 1928- Mkt up unprec. 86pts FC.131 POST WAR BOOM AND BUST (1920-29) US loans & sales to Eur. Unbalanced $ flow to US for loans, goods & resources Stock mkt craze in US where investors pay only 10% down & borrow rest from banks at 10-15% interest Stocks must rise 10-15%/yr to break even Investors prone to panic selling at 1st sign of trouble Tariffs to protect home mkts Higher prices & heavier competition fewer mkts Agr. Boom in US from selling grain to Eur. Agr. prices fall in 1920s when Eur. can feed itself again Agr crisis in US when farmers cant pay mortgages on land bought during the war Unstable world econ. in 1920s despite illusion of prosperity After-effects of World War I on world economy (FC.128) US takes over many Eur. Mkts (FC.128) Eurs rebuild inds, but dont reclaim mkts (FC.128)

A Post-war depression -France: 500% inflation -Low birth rate Slower pop. recovery -More agr. Econ Ind econ less affected by Depr. -Br exports to Fr down 65% & to US 42.6% by 1921 -Irish rev Indep (1937) New products & techs -Refrigeration, comm. air travel, talking films, radio, vacuum cleaners, cars -80% new inds in US Fr & Br relied on $ fr. Ger Ger relied on $ from US $3.5B invested in Eur, $1B alone in Ger. 1916-26- $1.90->$1.12/ bushel Cash & Credit (1920-29) -Cash: $3.68B $3.64B ~1% drop -Credit: $45.3B $73B 61.8% rise 1928-Mkt up unprec. 86pts 1929-110 pts in 3 months FC.131 POST WAR BOOM AND BUST (1920-29) US loans & sales to Eur. Unbalanced $ flow to US for loans, goods & resources Stock mkt craze in US where investors pay only 10% down & borrow rest from banks at 10-15% interest Stocks must rise 10-15%/yr to break even Investors prone to panic selling at 1st sign of trouble Tariffs to protect home mkts Higher prices & heavier competition fewer mkts Agr. Boom in US from selling grain to Eur. Agr. prices fall in 1920s when Eur. can feed itself again Agr crisis in US when farmers cant pay mortgages on land bought during the war Unstable world econ. in 1920s despite illusion of prosperity After-effects of World War I on world economy (FC.128) US takes over many Eur. Mkts (FC.128) Eurs rebuild inds, but dont reclaim mkts (FC.128)

3 investors each borrow $1000 at 15% interest to buy stocks

To break even (incl. 15% int.), each investor needs stock to be at ?

3 investors each borrow $1000 at 15% interest to buy stocks To break even (incl. 15% int.), each investor needs stock to be at $1150

3 investors each borrow $1000 at 15% interest to buy stocks To break even (incl. 15% int.), each investor needs stock to be at $1150 Investor As stock is at $1600 Investor Bs stock is at $1400 Investor Cs stock is at $1200

3 investors each borrow $1000 at 15% interest to buy stocks To break even (incl. 15% int.), each investor needs stock to be at $1150 Investor As stock is at $1600 Investor Bs stock is at $1400 Investor Cs stock is at $1200 When stocks start to fall, who sells first and why?

3 investors each borrow $1000 at 15% interest to buy stocks To break even (incl. 15% int.), each investor needs stock to be at $1150 Investor As stock is at $1600 Investor Bs stock is at $1400 Investor Cs stock is at $1200 When stocks start to fall, C sells out first since its closest to losing $ -> Stock market?

3 investors each borrow $1000 at 15% interest to buy stocks To break even (incl. 15% int.), each investor needs stock to be at $1150 Investor As stock is at $1600 Investor Bs stock is at $1400 Investor Cs stock is at $1200 When stocks start to fall, C sells out first -> Stocks continue to fall -> Who sells out next?

3 investors each borrow $1000 at 15% interest to buy stocks To break even (incl. 15% int.), each investor needs stock to be at $1150 Investor As stock is at $1600 Investor Bs stock is at $1400 Investor Cs stock is at $1200 When stocks start to fall, C sells out first -> Stocks continue to fall -> B sells out -> Stock Market?

3 investors each borrow $1000 at 15% interest to buy stocks To break even (incl. 15% int.), each investor needs stock to be at $1150 Investor As stock is at $1600 Investor Bs stock is at $1400 Investor Cs stock is at $1200 When stocks start to fall, C sells out first -> Stocks continue to fall -> B sells out -> Stocks continue to fall -> What does A do?

3 investors each borrow $1000 at 15% interest to buy stocks To break even (incl. 15% int.), each investor needs stock to be at $1150 Investor As stock is at $1600 Investor Bs stock is at $1400 Investor Cs stock is at $1200 When stocks start to fall, C sells out first -> Stocks continue to fall -> B sells out -> Stocks continue to fall -> A sells out

A Post-war depression -France: 500% inflation -Low birth rate Slower pop. recovery -More agr. Econ Ind econ less affected by Depr. -Br exports to Fr down 65% & to US 42.6% by 1921 -Irish rev Indep (1937) New products & techs -Refrigeration, comm. air travel, talking films, radio, vacuum cleaners, cars -80% new inds in US Fr & Br relied on $ fr. Ger Ger relied on $ from US $3.5B invested in Eur, $1B alone in Ger. 1916-26- $1.90->$1.12/ bushel Cash & Credit (1920-29) -Cash: $3.68B $3.64B ~1% drop -Credit: $45.3B $73B 61.8% rise 1928-Mkt up unprec. 86pts 1929-110 pts in 3 months FC.131 POST WAR BOOM AND BUST (1920-29) US loans & sales to Eur. Unbalanced $ flow to US for loans, goods & resources Stock mkt craze in US where investors pay only 10% down & borrow rest from banks at 10-15% interest Stocks must rise 10-15%/yr to break even Investors prone to panic selling at 1st sign of trouble Tariffs to protect home mkts Higher prices & heavier competition fewer mkts Agr. Boom in US from selling grain to Eur. Agr. prices fall in 1920s when Eur. can feed itself again Agr crisis in US when farmers cant pay mortgages on land bought during the war Unstable world econ. in 1920s despite illusion of prosperity After-effects of World War I on world economy (FC.128) US takes over many Eur. Mkts (FC.128) Eurs rebuild inds, but dont reclaim mkts (FC.128)

A New products & techs -Refrigeration, comm. air travel, talking films, radio, vacuum cleaners, cars -80% new inds in US Fr & Br relied on $ fr. Ger Ger relied on $ from US $3.5B invested in Eur, $1B alone in Ger. 1916-26- $1.90->$1.12/ bushel Cash & Credit (1920-29) -Cash: $3.68B $3.64B ~1% drop -Credit: $45.3B $73B 61.8% rise 1928- Mkt up unprec. 86pts 1929-110 pts in 3 months The Crash (10/24 & 10/29) FC.131 POST WAR BOOM AND BUST (1920-29) US loans & sales to Eur. Unbalanced $ flow to US for loans, goods & resources Stock mkt craze in US where investors pay only 10% down & borrow rest from banks at 10-15% interest Stocks must rise 10-15%/yr to break even Investors prone to panic selling at 1st sign of trouble Tariffs to protect home mkts Higher prices & heavier competition fewer mkts Agr. Boom in US from selling grain to Eur. Agr. prices fall in 1920s when Eur. can feed itself again Agr crisis in US when farmers cant pay mortgages on land bought during the war Unstable world econ. in 1920s despite illusion of prosperity Loss of faith in econ. Cut production Loss of jobs & consumers Less buying & investment Panic selling Stocks drop After-effects of World War I on world economy (FC.128) US takes over many Eur. Mkts (FC.128) Eurs rebuild inds, but dont reclaim mkts (FC.128)

The scene on Wall Street and the floor of the New York Stock Exchange onOctober 24, 1929 (AKA Black Tuesday) was chaotic and, in some cases, suicidal. Cynical hotel clerks asked customers if they wanted a room so they could sleep or jump.

A New products & techs -Refrigeration, comm. air travel, talking films, radio, vacuum cleaners, cars -80% new inds in US Fr & Br relied on $ fr. Ger Ger relied on $ from US $3.5B invested in Eur, $1B alone in Ger. 1916-26- $1.90->$1.12/ bushel Cash & Credit (1920-29) -Cash: $3.68B $3.64B ~1% drop -Credit: $45.3B $73B 61.8% rise 1928- Mkt up unprec. 86pts 1929-110 pts in 3 months The Crash (10/24 & 10/29) -13m. Shares sold in hours Some fell $75/share 11/ 1- Mkt had lost $40B FC.131 POST WAR BOOM AND BUST (1920-29) US loans & sales to Eur. Unbalanced $ flow to US for loans, goods & resources Stock mkt craze in US where investors pay only 10% down & borrow rest from banks at 10-15% interest Stocks must rise 10-15%/yr to break even Investors prone to panic selling at 1st sign of trouble Tariffs to protect home mkts Higher prices & heavier competition fewer mkts Agr. Boom in US from selling grain to Eur. Agr. prices fall in 1920s when Eur. can feed itself again Agr crisis in US when farmers cant pay mortgages on land bought during the war Unstable world econ. in 1920s despite illusion of prosperity Loss of faith in econ. Cut production Loss of jobs & consumers Less buying & investment Panic selling Stocks drop After-effects of World War I on world economy (FC.128) US takes over many Eur. Mkts (FC.128) Eurs rebuild inds, but dont reclaim mkts (FC.128)

A New products & techs -Refrigeration, comm. air travel, talking films, radio, vacuum cleaners, cars -80% new inds in US Fr & Br relied on $ fr. Ger Ger relied on $ from US $3.5B invested in Eur, $1B alone in Ger. 1916-26- $1.90->$1.12/ bushel Cash & Credit (1920-29) -Cash: $3.68B $3.64B ~1% drop -Credit: $45.3B $73B 61.8% rise 1928- Mkt up unprec. 86pts 1929-110 pts in 3 months The Crash (10/24 & 10/29) -13m. Shares sold in hours Some fell $75/share 11/ 1- Mkt had lost $40B 11/13- Mkt fell 469-220 FC.131 POST WAR BOOM AND BUST (1920-29) US loans & sales to Eur. Unbalanced $ flow to US for loans, goods & resources Stock mkt craze in US where investors pay only 10% down & borrow rest from banks at 10-15% interest Stocks must rise 10-15%/yr to break even Investors prone to panic selling at 1st sign of trouble Tariffs to protect home mkts Higher prices & heavier competition fewer mkts Agr. Boom in US from selling grain to Eur. Agr. prices fall in 1920s when Eur. can feed itself again Agr crisis in US when farmers cant pay mortgages on land bought during the war Unstable world econ. in 1920s despite illusion of prosperity Loss of faith in econ. Cut production Loss of jobs & consumers Less buying & investment Panic selling Stocks drop After-effects of World War I on world economy (FC.128) US takes over many Eur. Mkts (FC.128) Eurs rebuild inds, but dont reclaim mkts (FC.128)

A New products & techs -Refrigeration, comm. air travel, talking films, radio, vacuum cleaners, cars -80% new inds in US Fr & Br relied on $ fr. Ger Ger relied on $ from US $3.5B invested in Eur, $1B alone in Ger. 1916-26- $1.90->$1.12/ bushel Cash & Credit (1920-29) -Cash: $3.68B $3.64B ~1% drop -Credit: $45.3B $73B 61.8% rise 1928- Mkt up unprec. 86pts 1929-110 pts in 3 months The Crash (10/24 & 10/29) -13m. Shares sold in hours Some fell $75/share 11/ 1- Mkt had lost $40B 11/13- Mkt fell 469-220 1932- Stocks down 75% FC.131 POST WAR BOOM AND BUST (1920-29) US loans & sales to Eur. Unbalanced $ flow to US for loans, goods & resources Stock mkt craze in US where investors pay only 10% down & borrow rest from banks at 10-15% interest Stocks must rise 10-15%/yr to break even Investors prone to panic selling at 1st sign of trouble Tariffs to protect home mkts Higher prices & heavier competition fewer mkts Agr. Boom in US from selling grain to Eur. Agr. prices fall in 1920s when Eur. can feed itself again Agr crisis in US when farmers cant pay mortgages on land bought during the war Unstable world econ. in 1920s despite illusion of prosperity Loss of faith in econ. Cut production Loss of jobs & consumers Less buying & investment Panic selling Stocks drop After-effects of World War I on world economy (FC.128) US takes over many Eur. Mkts (FC.128) Eurs rebuild inds, but dont reclaim mkts (FC.128)

A New products & techs -Refrigeration, comm. air travel, talking films, radio, vacuum cleaners, cars -80% new inds in US Fr & Br relied on $ fr. Ger Ger relied on $ from US $3.5B invested in Eur, $1B alone in Ger. 1916-26- $1.90->$1.12/ bushel Cash & Credit (1920-29) -Cash: $3.68B $3.64B ~1% drop -Credit: $45.3B $73B 61.8% rise 1928- Mkt up unprec. 86pts 1929-110 pts in 3 months The Crash (10/24 & 10/29) -13m. Shares sold in hours Some fell $75/share 11/ 1- Mkt had lost $40B 11/13- Mkt fell 469-220 1932- Stocks down 75% -US Steel: $232 $22 FC.131 POST WAR BOOM AND BUST (1920-29) US loans & sales to Eur. Unbalanced $ flow to US for loans, goods & resources Stock mkt craze in US where investors pay only 10% down & borrow rest from banks at 10-15% interest Stocks must rise 10-15%/yr to break even Investors prone to panic selling at 1st sign of trouble Tariffs to protect home mkts Higher prices & heavier competition fewer mkts Agr. Boom in US from selling grain to Eur. Agr. prices fall in 1920s when Eur. can feed itself again Agr crisis in US when farmers cant pay mortgages on land bought during the war Unstable world econ. in 1920s despite illusion of prosperity Loss of faith in econ. Cut production Loss of jobs & consumers Less buying & investment Panic selling Stocks drop After-effects of World War I on world economy (FC.128) US takes over many Eur. Mkts (FC.128) Eurs rebuild inds, but dont reclaim mkts (FC.128)

A New products & techs -Refrigeration, comm. air travel, talking films, radio, vacuum cleaners, cars -80% new inds in US Fr & Br relied on $ fr. Ger Ger relied on $ from US $3.5B invested in Eur, $1B alone in Ger. 1916-26- $1.90->$1.12/ bushel Cash & Credit (1920-29) -Cash: $3.68B $3.64B ~1% drop -Credit: $45.3B $73B 61.8% rise 1928- Mkt up unprec. 86pts 1929-110 pts in 3 months The Crash (10/24 & 10/29) -13m. Shares sold in hours Some fell $75/share 11/ 1- Mkt had lost $40B 11/13- Mkt fell 469-220 1932- Stocks down 75% -US Steel: $232 $22 -Some stocks $100 $0.50 FC.131 POST WAR BOOM AND BUST (1920-29) US loans & sales to Eur. Unbalanced $ flow to US for loans, goods & resources Stock mkt craze in US where investors pay only 10% down & borrow rest from banks at 10-15% interest Stocks must rise 10-15%/yr to break even Investors prone to panic selling at 1st sign of trouble Tariffs to protect home mkts Higher prices & heavier competition fewer mkts Agr. Boom in US from selling grain to Eur. Agr. prices fall in 1920s when Eur. can feed itself again Agr crisis in US when farmers cant pay mortgages on land bought during the war Unstable world econ. in 1920s despite illusion of prosperity Loss of faith in econ. Cut production Loss of jobs & consumers Less buying & investment Panic selling Stocks drop After-effects of World War I on world economy (FC.128) US takes over many Eur. Mkts (FC.128) Eurs rebuild inds, but dont reclaim mkts (FC.128)

FC.131 POST WAR BOOM AND BUST (1920-29) US loans & sales to Eur. Unbalanced $ flow to US for loans, goods & resources Stock mkt craze in US where investors pay only 10% down & borrow rest from banks at 10-15% interest Stocks must rise 10-15%/yr to break even Investors prone to panic selling at 1st sign of trouble Tariffs to protect home mkts Higher prices & heavier competition fewer mkts Agr. Boom in US from selling grain to Eur. Agr. prices fall in 1920s when Eur. can feed itself again Agr crisis in US when farmers cant pay mortgages on land bought during the war Unstable world econ. in 1920s despite illusion of prosperity Loss of faith in econ. Cut production Loss of jobs & consumers Less buying & investment Panic selling Stocks drop After-effects of World War I on world economy (FC.128) US takes over many Eur. Mkts (FC.128) Eurs rebuild inds, but dont reclaim mkts (FC.128) A New products & techs -Refrigeration, comm. air travel, talking films, radio, vacuum cleaners, cars -80% new inds in US Fr & Br relied on $ fr. Ger Ger relied on $ from US $3.5B invested in Eur, $1B alone in Ger. 1916-26- $1.90->$1.12/ bushel Cash & Credit (1920-29) -Cash: $3.68B $3.64B ~1% drop -Credit: $45.3B $73B 61.8% rise 1928- Mkt up unprec. 86pts 1929-110 pts in 3 months The Crash (10/24 & 10/29) -13m. Shares sold in hours Some fell $75/share 11/ 1- Mkt had lost $40B 11/13- Mkt fell 469-220 1932- Stocks down 75% -US Steel: $232 $22 -Some stocks $100- $0.50 Buying & investment?

FC.131 POST WAR BOOM AND BUST (1920-29) US loans & sales to Eur. Unbalanced $ flow to US for loans, goods & resources Stock mkt craze in US where investors pay only 10% down & borrow rest from banks at 10-15% interest Stocks must rise 10-15%/yr to break even Investors prone to panic selling at 1st sign of trouble Tariffs to protect home mkts Higher prices & heavier competition fewer mkts Agr. Boom in US from selling grain to Eur. Agr. prices fall in 1920s when Eur. can feed itself again Agr crisis in US when farmers cant pay mortgages on land bought during the war Unstable world econ. in 1920s despite illusion of prosperity Loss of faith in econ. Cut production Loss of jobs & consumers Less buying & investment Panic selling Stocks drop After-effects of World War I on world economy (FC.128) US takes over many Eur. Mkts (FC.128) Eurs rebuild inds, but dont reclaim mkts (FC.128) A New products & techs -Refrigeration, comm. air travel, talking films, radio, vacuum cleaners, cars -80% new inds in US Fr & Br relied on $ fr. Ger Ger relied on $ from US $3.5B invested in Eur, $1B alone in Ger. 1916-26- $1.90->$1.12/ bushel Cash & Credit (1920-29) -Cash: $3.68B $3.64B ~1% drop -Credit: $45.3B $73B 61.8% rise 1928- Mkt up unprec. 86pts 1929-110 pts in 3 months The Crash (10/24 & 10/29) -13m. Shares sold in hours Some fell $75/share 11/ 1- Mkt had lost $40B 11/13- Mkt fell 469-220 1932- Stocks down 75% -US Steel: $232 $22 -Some stocks $100 $0.50 Production?

FC.131 POST WAR BOOM AND BUST (1920-29) US loans & sales to Eur. Unbalanced $ flow to US for loans, goods & resources Stock mkt craze in US where investors pay only 10% down & borrow rest from banks at 10-15% interest Stocks must rise 10-15%/yr to break even Investors prone to panic selling at 1st sign of trouble Tariffs to protect home mkts Higher prices & heavier competition fewer mkts Agr. Boom in US from selling grain to Eur. Agr. prices fall in 1920s when Eur. can feed itself again Agr crisis in US when farmers cant pay mortgages on land bought during the war Unstable world econ. in 1920s despite illusion of prosperity Loss of faith in econ. Cut production Loss of jobs & consumers Less buying & investment Panic selling Stocks drop After-effects of World War I on world economy (FC.128) US takes over many Eur. Mkts (FC.128) Eurs rebuild inds, but dont reclaim mkts (FC.128) A New products & techs -Refrigeration, comm. air travel, talking films, radio, vacuum cleaners, cars -80% new inds in US Fr & Br relied on $ fr. Ger Ger relied on $ from US $3.5B invested in Eur, $1B alone in Ger. 1916-26- $1.90->$1.12/ bushel Cash & Credit (1920-29) -Cash: $3.68B $3.64B ~1% drop -Credit: $45.3B $73B 61.8% rise 1928- Mkt up unprec. 86pts 1929-110 pts in 3 months The Crash (10/24 & 10/29) -13m. Shares sold in hours Some fell $75/share 11/ 1- Mkt had lost $40B 11/13- Mkt fell 469-220 1932- Stocks down 75% -US Steel: $232 $22 -Some stocks $100 $0.50 Jobs & consumers?

A New products & techs -Refrigeration, comm. air travel, talking films, radio, vacuum cleaners, cars -80% new inds in US Fr & Br relied on $ fr. Ger Ger relied on $ from US $3.5B invested in Eur, $1B alone in Ger. 1916-26- $1.90->$1.12/ bushel Cash & Credit (1920-29) -Cash: $3.68B $3.64B ~1% drop -Credit: $45.3B $73B 61.8% rise 1928- Mkt up unprec. 86pts 1929-110 pts in 3 months The Crash (10/24 & 10/29) -13m. Shares sold in hours Some fell $75/share 11/ 1- Mkt had lost $40B 11/13- Mkt fell 469-220 1932- Stocks down 75% -US Steel: $232 $22 -Some stocks $100 $0.50 1929-33-US ind. prod. fell 50% & Natl income 75% FC.131 POST WAR BOOM AND BUST (1920-29) US loans & sales to Eur. Unbalanced $ flow to US for loans, goods & resources Stock mkt craze in US where investors pay only 10% down & borrow rest from banks at 10-15% interest Stocks must rise 10-15%/yr to break even Investors prone to panic selling at 1st sign of trouble Tariffs to protect home mkts Higher prices & heavier competition fewer mkts Agr. Boom in US from selling grain to Eur. Agr. prices fall in 1920s when Eur. can feed itself again Agr crisis in US when farmers cant pay mortgages on land bought during the war Unstable world econ. in 1920s despite illusion of prosperity Loss of faith in econ. Cut production Loss of jobs & consumers Less buying & investment Panic selling Stocks drop After-effects of World War I on world economy (FC.128) US takes over many Eur. Mkts (FC.128) Eurs rebuild inds, but dont reclaim mkts (FC.128)

A New products & techs -Refrigeration, comm. air travel, talking films, radio, vacuum cleaners, cars -80% new inds in US Fr & Br relied on $ fr. Ger Ger relied on $ from US $3.5B invested in Eur, $1B alone in Ger. 1916-26- $1.90->$1.12/ bushel Cash & Credit (1920-29) -Cash: $3.68B $3.64B ~1% drop -Credit: $45.3B $73B 61.8% rise 1928- Mkt up unprec. 86pts 1929-110 pts in 3 months The Crash (10/24 & 10/29) -13m. Shares sold in hours Some fell $75/share 11/ 1- Mkt had lost $40B 11/13- Mkt fell 469-220 1932- Stocks down 75% -US Steel: $232 $22 -Some stocks $100 $0.50 1929-33-US ind. prod. fell 50% & Natl income 75% -Avg. work week 6 3 days FC.131 POST WAR BOOM AND BUST (1920-29) US loans & sales to Eur. Unbalanced $ flow to US for loans, goods & resources Stock mkt craze in US where investors pay only 10% down & borrow rest from banks at 10-15% interest Stocks must rise 10-15%/yr to break even Investors prone to panic selling at 1st sign of trouble Tariffs to protect home mkts Higher prices & heavier competition fewer mkts Agr. Boom in US from selling grain to Eur. Agr. prices fall in 1920s when Eur. can feed itself again Agr crisis in US when farmers cant pay mortgages on land bought during the war Unstable world econ. in 1920s despite illusion of prosperity Loss of faith in econ. Cut production Loss of jobs & consumers Less buying & investment Panic selling Stocks drop After-effects of World War I on world economy (FC.128) US takes over many Eur. Mkts (FC.128) Eurs rebuild inds, but dont reclaim mkts (FC.128)

A New products & techs -Refrigeration, comm. air travel, talking films, radio, vacuum cleaners, cars -80% new inds in US Fr & Br relied on $ fr. Ger Ger relied on $ from US $3.5B invested in Eur, $1B alone in Ger. 1916-26- $1.90->$1.12/ bushel Cash & Credit (1920-29) -Cash: $3.68B $3.64B ~1% drop -Credit: $45.3B $73B 61.8% rise 1928- Mkt up unprec. 86pts 1929-110 pts in 3 months The Crash (10/24 & 10/29) -13m. Shares sold in hours Some fell $75/share 11/ 1- Mkt had lost $40B 11/13- Mkt fell 469-220 1932- Stocks down 75% -US Steel: $232 $22 -Some stocks $100 $0.50 1929-33-US ind. prod. fell 50% & Natl income 75% -Avg. work week 6 3 days -13m. unempl 25% WC FC.131 POST WAR BOOM AND BUST (1920-29) US loans & sales to Eur. Unbalanced $ flow to US for loans, goods & resources Stock mkt craze in US where investors pay only 10% down & borrow rest from banks at 10-15% interest Stocks must rise 10-15%/yr to break even Investors prone to panic selling at 1st sign of trouble Tariffs to protect home mkts Higher prices & heavier competition fewer mkts Agr. Boom in US from selling grain to Eur. Agr. prices fall in 1920s when Eur. can feed itself again Agr crisis in US when farmers cant pay mortgages on land bought during the war Unstable world econ. in 1920s despite illusion of prosperity Loss of faith in econ. Cut production Loss of jobs & consumers Less buying & investment Panic selling Stocks drop After-effects of World War I on world economy (FC.128) US takes over many Eur. Mkts (FC.128) Eurs rebuild inds, but dont reclaim mkts (FC.128)

FC.131 POST WAR BOOM AND BUST (1920-29) US loans & sales to Eur. Unbalanced $ flow to US for loans, goods & resources Stock mkt craze in US where investors pay only 10% down & borrow rest from banks at 10-15% interest Stocks must rise 10-15%/yr to break even Investors prone to panic selling at 1st sign of trouble Tariffs to protect home mkts Higher prices & heavier competition fewer mkts Agr. Boom in US from selling grain to Eur. Agr. prices fall in 1920s when Eur. can feed itself again Agr crisis in US when farmers cant pay mortgages on land bought during the war Unstable world econ. in 1920s despite illusion of prosperity Loss of faith in econ. Cut production Loss of jobs & consumers Less buying & investment Panic selling Stocks drop After-effects of World War I on world economy (FC.128) US takes over many Eur. Mkts (FC.128) Eurs rebuild inds, but dont reclaim mkts (FC.128) 5000 US banks, which over-invested in stock mkt, crash Eur. Banks crash when US banks call in loans A New products & techs -Refrigeration, comm. air travel, talking films, radio, vacuum cleaners, cars -80% new inds in US Fr & Br relied on $ fr. Ger Ger relied on $ from US $3.5B invested in Eur, $1B alone in Ger. 1916-26- $1.90->$1.12/ bushel Cash & Credit (1920-29) -Cash: $3.68B $3.64B ~1% drop -Credit: $45.3B $73B 61.8% rise 1928- Mkt up unprec. 86pts 1929-110 pts in 3 months The Crash (10/24 & 10/29) -13m. Shares sold in hours Some fell $75/share 11/ 1- Mkt had lost $40B 11/13- Mkt fell 469-220 1932- Stocks down 75% -US Steel: $232 $22 -Some stocks $100 $0.50 1929-33-US ind. prod. fell 50% & Natl income 75% -Avg. work week 6 3 days -13m. unempl 25% WC Impact on Banks?

A New products & techs -Refrigeration, comm. air travel, talking films, radio, vacuum cleaners, cars -80% new inds in US Fr & Br relied on $ fr. Ger Ger relied on $ from US $3.5B invested in Eur, $1B alone in Ger. 1916-26- $1.90->$1.12/ bushel Cash & Credit (1920-29) -Cash: $3.68B $3.64B ~1% drop -Credit: $45.3B $73B 61.8% rise 1928- Mkt up unprec. 86pts 1929-110 pts in 3 months The Crash (10/24 & 10/29) -13m. Shares sold in hours Some fell $75/share 11/ 1- Mkt had lost $40B 11/13- Mkt fell 469-220 1932- Stocks down 75% -US Steel: $232 $22 -Some stocks $100 $0.50 1929-33-US ind. prod. fell 50% & Natl income 75% -Avg. work week 6 3 days -13m. unempl 25% WC FC.131 POST WAR BOOM AND BUST (1920-29) US loans & sales to Eur. Unbalanced $ flow to US for loans, goods & resources Stock mkt craze in US where investors pay only 10% down & borrow rest from banks at 10-15% interest Stocks must rise 10-15%/yr to break even Investors prone to panic selling at 1st sign of trouble Tariffs to protect home mkts Higher prices & heavier competition fewer mkts Agr. Boom in US from selling grain to Eur. Agr. prices fall in 1920s when Eur. can feed itself again Agr crisis in US when farmers cant pay mortgages on land bought during the war Unstable world econ. in 1920s despite illusion of prosperity Loss of faith in econ. Cut production Loss of jobs & consumers Less buying & investment Panic selling Stocks drop After-effects of World War I on world economy (FC.128) US takes over many Eur. Mkts (FC.128) Eurs rebuild inds, but dont reclaim mkts (FC.128) 5000 US banks, which over-invested in stock mkt, crash Eur. Banks crash when US banks call in loans

Crowds mob a bank to get their savings out before the worsening depression consumes them. Unfortunately, thousands of banks across the U.S. had already lost their money and some 5,000 of them had to close down, taking their investors savings with them.

A New York City policeman guards a closed bank against any angry investors.

FC.131 POST WAR BOOM AND BUST (1920-29) US loans & sales to Eur. Unbalanced $ flow to US for loans, goods & resources Stock mkt craze in US where investors pay only 10% down & borrow rest from banks at 10-15% interest Stocks must rise 10-15%/yr to break even Investors prone to panic selling at 1st sign of trouble Tariffs to protect home mkts Higher prices & heavier competition fewer mkts Agr. Boom in US from selling grain to Eur. Agr. prices fall in 1920s when Eur. can feed itself again Agr crisis in US when farmers cant pay mortgages on land bought during the war Unstable world econ. in 1920s despite illusion of prosperity Loss of faith in econ. Cut production Loss of jobs & consumers Less buying & investment Panic selling Stocks drop After-effects of World War I on world economy (FC.128) US takes over many Eur. Mkts (FC.128) Eurs rebuild inds, but dont reclaim mkts (FC.128) 5000 US banks, which over-invested in stock mkt, crash Eur. Banks crash when US banks call in loans A New products & techs -Refrigeration, comm. air travel, talking films, radio, vacuum cleaners, cars -80% new inds in US Fr & Br relied on $ fr. Ger Ger relied on $ from US $3.5B invested in Eur, $1B alone in Ger. 1916-26- $1.90->$1.12/ bushel Cash & Credit (1920-29) -Cash: $3.68B $3.64B ~1% drop -Credit: $45.3B $73B 61.8% rise 1928- Mkt up unprec. 86pts 1929-110 pts in 3 months The Crash (10/24 & 10/29) -13m. Shares sold in hours Some fell $75/share 11/ 1- Mkt had lost $40B 11/13- Mkt fell 469-220 1932- Stocks down 75% -US Steel: $232 $22 -Some stocks $100 $0.50 1929-33-US ind. prod. fell 50% & Natl income 75% -Avg. work week 6 3 days -13m. unempl 25% WC 5000 US banks, which over-invested in stock mkt, crash Who else was affected?

A Post-war depression -France: 500% inflation -Low birth rate longer to recover pop. -More agr. Ec less affected by Depr -Br: Exports down 65% to Fr & 42.6% to US by 1921 -Irish rev Indep (1937) New products & techs -Refrigeration, comm. air travel, talking films, radio, vacuum cleaners, cars -80% new inds in US Fr & Br relied on $ fr. Ger Ger relied on $ from US $3.5B invested in Eur, $1B alone in Ger. 1916-26- $1.90 $1.12/ bushel Cash & Credit (1920-29) -Cash: $3.68B $3.64B ~1% drop -Credit: $45.3B $73B 61.8% rise 1928- Mkt up unprec. 86pts 1929-110 pts in 3 months The Crash (10/24 & 10/29) -13m. Shares sold in hours Some fell $75/share 11/ 1- Mkt had lost $40B 11/13- Mkt fell 469-220 1932- Stocks down 75% -US Steel: $232 $22 -Some stocks $100 $0.50 1929-33-US ind. prod. fell 50% & Natl income 75% -Avg. work week 6 3 days -13m. unempl 25% WC FC.131 POST WAR BOOM AND BUST (1920-29) US loans & sales to Eur. Unbalanced $ flow to US for loans, goods & resources Stock mkt craze in US where investors pay only 10% down & borrow rest from banks at 10-15% interest Stocks must rise 10-15%/yr to break even Investors prone to panic selling at 1st sign of trouble Tariffs to protect home mkts Higher prices & heavier competition fewer mkts Agr. Boom in US from selling grain to Eur. Agr. prices fall in 1920s when Eur. can feed itself again Agr crisis in US when farmers cant pay mortgages on land bought during the war Unstable world econ. in 1920s despite illusion of prosperity Loss of faith in econ. Cut production Loss of jobs & consumers Less buying & investment Panic selling Stocks drop After-effects of World War I on world economy (FC.128) US takes over many Eur. Mkts (FC.128) Eurs rebuild inds, but dont reclaim mkts (FC.128) Worldwide depression (FC.132) 5000 US banks, which over-invested in stock mkt, crash Eur. Banks crash when US banks call in loans

"Brother, Can You Spare a Dime," lyrics by Yip Harburg, music by Jay Gorney (1931) They used to tell me I was building a dream, and so I followed the mob, When there was earth to plow, or guns to bear, I was always there right on the job. They used to tell me I was building a dream, with peace and glory ahead, Why should I be standing in line, just waiting for bread? Once I built a railroad, I made it run, made it race against time. Once I built a railroad; now it's done. Brother, can you spare a dime? Once I built a tower, up to the sun, brick, and rivet, and lime; Once I built a tower, now it's done. Brother, can you spare a dime? Once in khaki suits, gee we looked swell, Full of that Yankee Doodly Dum, Half a million boots went slogging through Hell, And I was the kid with the drum! Say, don't you remember, they called me Al; it was Al all the time. Why don't you remember, I'm your pal? Buddy, can you spare a dime?

A *** FC.131 POST WAR BOOM AND BUST (1920-29) US loans & sales to Eur. Unbalanced $ flow to US for loans, goods & resources Stock mkt craze in US where investors pay only 10% down & borrow rest from banks at 10-15% interest Stocks must rise 10-15%/yr to break even Investors prone to panic selling at 1st sign of trouble Tariffs to protect home mkts Higher prices & heavier competition fewer mkts Agr. Boom in US from selling grain to Eur. Agr. prices fall in 1920s when Eur. can feed itself again Agr crisis in US when farmers cant pay mortgages on land bought during the war Unstable world econ. in 1920s despite illusion of prosperity Loss of faith in econ. Cut production Loss of jobs & consumers Less buying & investment Panic selling Stocks drop After-effects of World War I on world economy (FC.128) US takes over many Eur. Mkts (FC.128) Eurs rebuild inds, but dont reclaim mkts (FC.128) Worldwide depression (FC.132) 5000 US banks, which over-invested in stock mkt, crash Eur. Banks crash when US banks call in loans

the “roaring twenties” 11:30 massconsumptionsociety.2

Documents

new car

p7jok slide

early films

new standard

mass production

new level

car manufacturers

complete car