Who Wants to Be A Millionaire?

• Ford Motor Company stock - $14.19 per share

• John Deere stock - $88.18 per share• General Electric stock - $26.33 per

share• Coca-Cola stock - $42.33 per share• ExxonMobil stock - $96.64 per share• Apple stock - $108.81 per share

Bell Ringer

Should businesses be allowed to do whatever they want, if it improves the economy? Why or why not?

The RoaringTwenties

The Roaring Twenties

• The 1920s gains the nickname of the Roaring 20s because of the economic boom that occurred during the time.–The average American wage soared

22%–Work hours and days decreased, leaving

more time for entertainment–Many Americans were getting a

vacation for the very first time.

NORMALCY AND GOOD TIMES

Politics of the Roaring Twenties

Harding’s Presidency

• Harding was chosen because he was “folksy” – a man of the people, as a contrast to Wilson’s elitist professorial persona.

• He was tall and handsome, and looked the part of President

• Was gullible and of average intelligence

A Return to “Normalcy”

• Harding promoted a return to “normalcy” after the war.

• The Ohio Gang: Friends and political allies Harding appointed to high government positions from his home state of Ohio.

• Many members were corrupt– Sold government positions, gave

criminal pardons, laundered money, etc.

Teapot Dome Scandal

• Sec. of Interior Albert B. Fall was to manage natural resources, and when oil was found near Teapot Dome, WY, he had the land secretly placed under his control, accepting bribes for oil drilling rights.

• Word leaked out and the case dragged on for six years, adding jury and evidence tampering to the scandal

The Republican “Old Guard” Returns

• Under Harding’s administration, business boomed, largely to the return to laissez faire economics and a setting aside of Anti-Trust laws

• The labor movement struggled badly, causing strikes, riots, and distrust

• Fordney-McCumber Tariff raised rates to 38%, helping domestic business, but hurting European countries that needed to export to the US to pay back their WWI debts.

• Diapers - $5.61• Clothing – $25.86• Crib - $819.15• Teddy Bear -

$13.41

CONGRATULATIONS!!

Who Wants to Be A Millionaire? – Survival Items

• Rayart dress - $94.94• Striped brown

trousers with Broadcloth dress shirt - $78.07

• “The Lexington” six-bedroom home – – Rent: $141.98/mo.– Buy: $55,130.17

• Birdseye Frozen Foods: $1.23/week

Who Wants to Be A Millionaire?

• Ford Motor Company stock - $ per share

• John Deere stock - $ per share• General Electric stock - $ per

share• Coca-Cola stock - $ per share• ExxonMobil stock - $ per share• Apple stock - $ per share

“Silent Cal”• Harding died of pneumonia• Coolidge was calm, shy, moral,

boring, and quiet• Was even more pro-business than

HardingMeep.

Stay “Cool”

• Coolidge was reelected as a conservative, dedicated to isolationism, business, and war debt repayment

• First presidential election where women were allowed to vote in all states

“The chief business of the American people is business.”

Changes to Business

• Modern organizational business structures developed during this time– Divisions were created, e.g. sales,

marketing, accounting, etc.– Increase in the use of managers – Helped the middle class grow

• Welfare capitalism: Companies allow workers to buy stock, participate in profit sharing, and receive pensions and medical benefits.

• Unionization lost popularity – times were good, so why join a union?

Tough Times on the Farm

• WWI = High farm prices (feeding an army!)

• Post-WWI = drop in demand + high cost of farm equipment low farm prices many farmers in extreme debt

• Congress tried to keep agriculture prices high by buying surpluses and then selling them to other nations. The idea was vetoed twice by Coolidge.

The Dawes Plan• Charles Dawes, an American banker and

current VP, gave a $200 million loan from US banks would help stabilize the German economy

• It set a more realistic repayment plan than the German reparations plan under the Treaty of Versailles• They could pay back

Britain and France, who could then repay the US

Election of 1928• Herbert Hoover became the

nominee for the Republicans, promoting “rugged individualism” - America had been made by strong, self-sufficient individuals

• Democrats nominated NY Governor Alfred E. Smith, a well-liked man, but he was Catholic, which was the death blow for the South.

• With the popularity of the radio, Hoover had the advantage over Smith’s grating New York accent.

Master Mellon• Andrew Mellon: Secretary

of Treasury; believed government should operate like a business– Goals: balance the budget,

reduce government debt, and cut taxes.

• Supply-side/“Trickle-down” economics: Theory that lower taxes (especially for the wealthy) will boost the economy as businesses and individuals invest their money, thereby creating a higher tax revenue.

Hoover’s Administration

• Cooperative individualism: A policy of encouraging manufacturers and distributors to form their own organizations and volunteer information to the federal government in an effort to stimulate the economy

• Centered on eliminating waste and increasing efficiency in business and industry.

• The US retreated into isolationism after WWI, hoping to avoid further foreign entanglements. It also left them without allies.

Stock Market Terms

• Bull Market• Bear Market• Market Chicken• Market Pig

Who Wants to Be A Millionaire? – Survival Items

• The “Ritz” Suit - $271.44• Silk Georgette Crepe Dress

- $208.10• Kids clothes - $27.14• “The Lexington” six-

bedroom home – – Rent: $156.17/mo.– Buy: $60,643.18

• Better Homes and Gardens Cookbook: $41.76

Who Wants to Be A Millionaire?

• Ford Motor Company stock - $ per share

• John Deere stock - $ per share• General Electric stock - $ per

share• Coca-Cola stock - $ per share• ExxonMobil stock - $ per share• Apple stock - $ per share

Who Wants to Be A Millionaire?

• Rolls Royce Silver Ghost - $100,995.23• RCA Radiola - $6,890.37• Hoover Electric Vacuum - $542.18• Electric Washing Machine with Attached

Dryer - $1,134.48