Chapter 18 Flashcards
When did the Roaring Twenties occur and what was special about them?
It was the ten years (decade) following WW1 and before the great depression - most of the 1920’s - when there was great economic recovery and prosperity. People had more money because of low income taxes and there were plenty of jobs for most people.
What happened with the stock market throughout the 1920’s?
As many as 17 million Americans had started investing in the stock market as big companies needed more money to build factories and sell their products. There were many get-rich-quick stories that caused people to put too much of their money in the stock market at great risk of losing everything.
Who became president of the United States after President Wilson?
How long did he serve as president?
What did people think about him at the time, and what did they think about him later?
Warren Harding was elected in 1921
He only served three years since he died while still in office.
At the time, people thought he was a great president but after he died stories started to come out about how much scandal and crime there was in his government.
Who became president when Warren Harding died?
Calvin Coolidge was Harding’s Vice-President and when Harding died, he automatically became President.
What was President Coolidge known for?
- He restored dignity to the Presidency after all of the Harding scandals
- He didn’t like the government interfering with business. This unfortunately contributed to the stock market crash later that caused the economic properity to end
- He didn’t like the idea of government helping farmers and other industries that weren’t succeeding on their own
How did the US Government look at the rights of workers versus supporting big business?
The American Government really favored big business over workers’ rights, so many workers were very unhappy with unsafe working conditions and unfair pay. Many workers got together and created “Labor Unions” that helped protect their rights.
Why was the period from 1900-1920 called the “golden age of American agriculture”?
What started to happen to farmers throughout the 1920s?
Because farm property became much more valuable and new farming methods and technology allowed the farms to produce much more food.
Farmers actually produced more food than was needed and so they couldn’t sell the food at high enough prices to stay in business.
What two inventions dramatically changed American transportation in the Roaring Twenties?
The automobile and the airplane. Early automobiles weren’t really practical and were very expensive. Henry Ford revolutionized how cars were made that allowed average Americans to afford one.
What sort of advances occurred with communications in the Roaring Twenties?
Newspapers and magazines really got very popular with Americans, and more and more money was spent by companies advertising their products in newspapers and magazines.
Also, telephones became popular.
The Stock Market buys and sells stocks. What is a stock?
A stock is a part, or a share, in a business. When a person buys stock, they own a share in that business. If the business (company) becomes more valuable, they value of their stock goes up. They can sell their stock at a profit if that happens. But they can also lose money.
What’s the difference between buying stock of a company versus buying a bond from that company?
Stock is a share in the business. A bond is really a loan you’re making the business where they promise to pay you back with interest.
What is the name for a person that helps people buy and sell stock on the stock exchange?
A broker
What does it mean when a person buys stock “on margin”?
Buying stock on margin means that they’re borrowing money to buy the stock. If the stock value goes up and they sell at a profit, they can pay the debt and make some extra money. If the stock goes down in value, they can be in trouble.
What is meant by the expression “boom market”?
This is when the economy and jobs are growing very fast and people have more money to buy things, and then factories have to get bigger to keep making more things.
