2.3.3-4 Roaring 20's

Which describes the economic perspective of laissez-faire?

• the government should follow a bimetalist monetary policy

• the government should follow a hands off approach to the economy

• The government should set wages and prices to prevent widespread inflation

• The government should limit business expansion to encourage competition

Generally, the 1920s recovered from the post-WWI demobilization recession and experienced an economic _____.

• boom

• bust

• collapse

How did Americans feel about the unprecedented consumerism that took place in the 1920's?

• It was good - some—people can live in

  unprecedented comfort and material security.

• It was bad - can we predict where consumerism is

  taking us before we’re inextricably there?

• It was bad because we shouldn't make things we don't need

• It was good - cars didn't exist before the 1920's and we need them now.

What is installment buying?

• Buy now - pay later. Just make monthly payments and you can have what you want now

• Getting part of your home or car installed now, and when you can afford more, getting the rest done later.

What is the benefit of installment buying?

• Buying more today provides market stability by consistently giving businesses money. This helps grow the economy.

• It helps people keep up with the Joneses and appear better than they are.

• It's not credit cards!

What is the con of installment buying?

• If you lose your job, you can't pay them back

• You get really stressed having debts not paid back

• it's a bad thing to look better than you are.

"The chief business of the American people is business" - Calvin Coolidge. What was meant by this?

• The main goal of government is to keep the economy going well by promoting strong business

• Native American business is the same as Nativist American business

By 1925, the nation's economy had lifted itself out of the dreadful postwar recession and was setting astonishing new highs for production and consumption. Business was ____. The stock market was ____. American free enterprise was robust, confident, and delivering the goods, literally

• booming, booming

• busting, busted

• booming, busted

• busted, booming

Define Stock Market

• The exchange of shares of public corporations between buyers and sellers

• When stock market prices are rising, encouraging speculation.

• Buying to resell later at a higher price.

• Using a loan to invest in more than you can buy, hoping to sell for a high enough price to pay back the loan and make a profit.

Define Bull Market

• The exchange of shares of public corporations between buyers and sellers

• When stock market prices are rising, encouraging speculation.

• Buying to resell later at a higher price.

• Using a loan to invest in more than you can buy, hoping to sell for a high enough price to pay back the loan and make a profit.