Lesson 5 Speculation Boom and Rich/Poor Divide

Lesson 5

Speculation Boom and the Rich/Poor Divide

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The Roaring Twenties: Economic Boom 💼 Overview: Experience 1920s America with its economic growth post-WWI. Learn about the factors driving this boom: technology, innovations, and consumer behavior changes. Explore mass production and advertising as new technologies shaped lifestyles. 💰 Key Points: Examine Ford's assembly line and the rise of the automobile industry, transforming transportation. Discover the impact of credit on consumer spending and mass consumption. Reflect on the inequalities of the Roaring Twenties, where prosperity coexisted with poverty.

The Roaring Twenties: You can stop video at 1:55 OR watch the entire video.

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PovertyMore than 60% of Americans lived just below the poverty line

WagesWages for many workers increased slowly, and the average wage for manufacturing jobs only increased 8% from 1923–1929

Wealth distribution The top 5% of Americans earned a third of all income, while the bottom 93% saw their disposable income drop. In 1929, the top 0.1% had an income equal to the bottom 42%.

FarmersFarmers were burdened by heavy debt and faced overproduction after World War I.

HousingThe housing market was depressed in 1929, with housing starts falling to less than half the 1924 level.

Debt Many Americans used cheap credit to participate in the consumer boom, leaving them with debts