A Growing Economy

1
A Growing Economy

• Chapter 10, Lesson 1

2
Essential Question

• What were some factors that helped improve the
  economy in the 1920s?
• Hypothesis

3
Vocabulary

• Boom
• Assembly line
• Division of labor
• Stock
• Stock market

4
Changes in Power

• U.S. elected new president Warren G. Harding in
  1920
• Warren G. Harding promised Return to Normalcy

5
Changes in Economy

• Economic boom a period of fast economic growth
• International trade increased during and after
  the war
• When the U.S. won the war, many European
  countries had to repay their financial debts to
  U.S.
• At this time, the U.S. was the richest country in
  the world

6
Changes in production

• Henry Ford built the first assembly line
• The division of labor has a worker or group of
  workers focus on one task within a big project

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The effects of production changes

1. Ford spent less money making cars and charged
   lower prices
2. Ford paid his workers more
3. Lower prices for cars higher wages more
   people buying cars
4. Now, other companies mass produced their items
   too.
5. In order to make MORE stuff, companies hired MORE
   workers
6. More jobs good pay MORE items being bought for
   the first timeEVER

8
aving .

1. People put their into savings accounts in banks
2. Banks loan to businesses so businesses can
   improve

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and Investing

• People invest in banks and banks invest in
  businesses to make more .
• Americans invested in stocks or a share of
  ownership in the company.
• Stocks are a certain price. When the company
  makes , the value of stocks goes up.
  Stockholders are people that own stocks.
• Stocks are bought and sold at the stock market

10
Government in the 1920s

• The U.S. elected 3 presidents in the 1920s
  Warren G. Harding, Calvin Coolidge and Herbert
  Hoover
• The Presidents believed in
• Cutting taxes.
• Not as much involvement from the government to
  change the economy.
• Government to act like a business.
• Workers were the source of Americas prosperity
  and economic growth.