The Great Depression WWII

1.       Following World War I was a time of expansive growth in the United States

a.       Electrical appliances came on the scene                

                                                               i.      Electric stoves

                                                             ii.      Electric refrigerators

b.      Sales of household appliances doubled

New Luxuries

1.       Henry Ford designs the assembly line, able to produce cars quick and cheap

a.       1914 the model T sells for $400

b.      By 1929 more than 29 million cars are produced in the U.S.

2.       Federal highway act 1921 imposed tax on gasoline to build roads

a.       New construction=more jobs

b.      More jobs=economy good and people are spending money

The Bubble Burst

1.       In 1928 Herbert Hoover is elected President Unemployment is at its lowest point in history

2.       As work and wages grew so did the prices of these good

a.       Workers could no longer afford to buy the products they produces, which means not producing good which means no work!

3.       By 1929 the unemployment rate is at 40% (today it is 5%)

4.       Get rich quick fever

a.       People were buying and selling property sight unseen

b.      People were buying stocks at margin which meant they were only paying a portion of the price and were borrowing money to buy

c.       Scams were everywhere, phony oil and mining stocks people lost everything during this period