Standards Alignment
- TEKS.113.41.16A primary
analyze causes of economic growth and prosperity in the 1920s, including Warren Harding's Return to Normalcy, reduced taxes, and increased production efficiencies; - TEKS.113.41.16B primary
identify the causes of the Great Depression, including the impact of tariffs on world trade, stock market speculation, bank failures, and the monetary policy of the Federal Reserve System;
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Lesson Overview
This lesson explores the causes of economic growth and prosperity in the United States during the 1920s. Students will analyze how Warren Harding's Return to Normalcy, reduced taxes, and increased production efficiencies contributed to this period of economic expansion. The lesson also introduces the causes of the Great Depression to provide historical context and contrast. Through discussion, analysis of primary sources, and guided activities, students will understand the economic developments between World War I and World War II as outlined in TEKS standards.
Learning Objectives
- Explain how Warren Harding's Return to Normalcy influenced economic growth in the 1920s.
- Analyze the impact of reduced taxes on business and consumer prosperity during the 1920s.
- Describe how increased production efficiencies contributed to economic expansion in the 1920s.
- Identify the main causes of the Great Depression, including tariffs, stock market speculation, bank failures, and Federal Reserve policies.
Success Criteria
- Students can describe the key features of Harding's Return to Normalcy and its economic effects.
- Students can explain how tax reductions encouraged business growth and consumer spending.
- Students can illustrate how production efficiencies increased output and lowered costs.
- Students can list and explain the causes of the Great Depression with supporting examples.
Prerequisite Knowledge
Students should have a basic understanding of World War I and its aftermath, including the social and political climate of the United States in the early 20th century.
Key Vocabulary
- Return to Normalcy
- Reduced Taxes
- Production Efficiencies
- Economic Growth
- Great Depression
- Tariffs
- Stock Market Speculation
- Bank Failures
- Federal Reserve System
Materials and Resources
- Primary source excerpts from Warren Harding's speeches and policies
- Charts showing tax rates before and after the 1920s
- Graphs illustrating production output in the 1920s
- Images of 1920s factories and consumer goods
- Timeline templates
- Whiteboard or chart paper for group work
Teacher Preparation
- Review Warren Harding's policies and speeches related to the Return to Normalcy.
- Prepare primary source excerpts and discussion questions.
- Gather data on tax rates and production statistics from the 1920s.
- Prepare visuals such as charts, graphs, and images to support explanations.
- Plan discussion prompts and guiding questions to connect economic concepts to historical events.
Detailed Lesson Notes
Warren Harding's Return to Normalcy
The Return to Normalcy was Warren Harding's campaign promise to restore the United States to the way of life before World War I. This meant focusing on domestic issues, reducing government intervention in the economy, and promoting stability. Harding's policies aimed to reduce government spending and regulation, which encouraged business growth. This approach helped create an environment where businesses could expand and consumers felt more confident spending money.
Reduced Taxes and Economic Growth
During the 1920s, the federal government reduced taxes, especially for businesses and wealthy individuals. These tax cuts increased the amount of money businesses had to invest in new technologies and expansion. Consumers also benefited from lower taxes, which increased their disposable income and spending power. This increase in spending helped fuel demand for goods and services, contributing to economic prosperity.
Increased Production Efficiencies
Advancements in technology and manufacturing processes, such as the assembly line introduced by Henry Ford, greatly increased production efficiencies in the 1920s. These efficiencies allowed factories to produce more goods at lower costs, making products more affordable for consumers. Mass production techniques also created more jobs and stimulated economic growth by increasing supply to meet growing demand.
Causes of the Great Depression
While the 1920s were a time of prosperity, several factors contributed to the Great Depression that followed. High tariffs limited international trade, stock market speculation created an unstable financial environment, bank failures reduced public confidence and credit availability, and the Federal Reserve's monetary policies failed to prevent economic collapse. Understanding these causes helps explain the limits of the 1920s economic boom and the challenges that followed.
Worked Examples
Worked Example 1
Scenario
Explain how Warren Harding's Return to Normalcy contributed to economic growth in the 1920s.
Explanation
Harding's Return to Normalcy promised a focus on domestic stability and less government interference in business. This created a favorable environment for businesses to grow and for consumers to feel confident spending money, which stimulated economic growth.
Answer Guide
Harding's policies reduced government regulation and promoted business growth, helping the economy expand during the 1920s.
Worked Example 2
Scenario
Describe the impact of reduced taxes on the economy during the 1920s.
Explanation
Lower taxes meant businesses had more money to invest in new equipment and expansion, while consumers had more disposable income to spend. This increased production and consumption, fueling economic prosperity.
Answer Guide
Reduced taxes increased investment and consumer spending, which helped the economy grow.
Engage
Teacher Activity
Show students a timeline of the 1920s highlighting key events such as Harding's election, tax changes, and industrial growth. Present images of 1920s consumer goods and factories to spark interest.
Student Activity
Students observe the timeline and images, then share what they notice about the changes in the economy and lifestyle during the 1920s.
Explanation
This introduction helps students visualize the era and primes them to explore the causes of economic growth by connecting events and economic changes.
Examples
- Students note increased industrial activity and consumer goods.
- Students connect Harding's policies to a desire for stability and growth.
- Students recognize the importance of economic recovery after the war.
Explore
Teacher Activity
Divide students into small groups and provide each group with primary source excerpts from Harding's speeches, tax rate charts, and production data. Guide them to analyze how these factors contributed to economic growth.
Student Activity
In groups, students read and discuss the materials, then create a simple chart or poster showing how Return to Normalcy, tax reductions, and production efficiencies worked together to promote prosperity.
Explanation
This activity encourages students to engage directly with historical evidence and collaborate to understand complex economic relationships.
Examples
- Students identify government policies promoting business.
- Students explain increased consumer spending due to tax cuts.
- Students describe mass production and its impact on prices and availability.
Explain
Teacher Activity
Lead a class discussion summarizing the groups' findings. Use visuals to reinforce how these factors combined to create economic growth. Introduce the causes of the Great Depression as a contrasting topic.
Student Activity
Students share their group charts and listen to the discussion. They take notes on how the 1920s prosperity was built and what factors led to the economic downturn.
Explanation
This phase consolidates student understanding and introduces the complexity of economic cycles by linking prosperity with the causes of the Great Depression.
Examples
- Students articulate reasons for 1920s prosperity.
- Students recognize economic vulnerabilities.
- Students identify key causes of the Great Depression.
Elaborate
Teacher Activity
Assign students to create a timeline or cause-and-effect chart that connects Harding's policies, economic growth, and the onset of the Great Depression. Encourage them to use examples from the lesson.
Student Activity
Students work individually or in pairs to produce their timelines or charts, explaining the sequence and relationships between events and economic factors.
Explanation
This activity deepens understanding by requiring students to organize information logically and explain connections between historical events and economic outcomes.
Examples
- Students create clear timelines or charts showing cause and effect.
- Students explain the progression from prosperity to economic crisis.
Evaluate
Teacher Activity
Conduct a short quiz or exit ticket asking students to explain one cause of 1920s economic growth and one cause of the Great Depression. Review answers to assess understanding.
Student Activity
Students complete the quiz or exit ticket individually, writing brief explanations based on lesson content.
Explanation
This assessment checks students' ability to recall and explain key concepts from the lesson, ensuring readiness for future learning.
Examples
- Students correctly identify and explain Harding's Return to Normalcy or tax reductions.
- Students correctly identify a cause of the Great Depression such as tariffs or stock market speculation.
Classroom Activity
In groups, students read and discuss the materials, then create a simple chart or poster showing how Return to Normalcy, tax reductions, and production efficiencies worked together to promote prosperity.
Guided Practice
Guided Practice 1
Prompt
What was Warren Harding's Return to Normalcy?
Teacher Answer Guide
It was Harding's promise to restore the U.S. to pre-World War I conditions by focusing on domestic issues and reducing government intervention in the economy.
Guided Practice 2
Prompt
How did reduced taxes help the economy in the 1920s?
Teacher Answer Guide
Reduced taxes increased business investment and consumer spending, which helped the economy grow.
Guided Practice 3
Prompt
What are production efficiencies?
Teacher Answer Guide
Production efficiencies are improvements in manufacturing processes that allow more goods to be produced at lower costs.
Guided Practice 4
Prompt
Name one cause of the Great Depression.
Teacher Answer Guide
One cause was stock market speculation, which created financial instability.
Guided Practice 5
Prompt
How did tariffs contribute to the Great Depression?
Teacher Answer Guide
High tariffs limited international trade, reducing markets for U.S. goods and worsening the economic downturn.
Independent Practice
- Foundational: What was Warren Harding's Return to Normalcy?
- Developing: How did reduced taxes in the 1920s help businesses?
- Application: Explain how increased production efficiencies affected consumer goods in the 1920s.
- Analysis: Analyze how the causes of the Great Depression contrast with the factors that led to 1920s prosperity.
- Challenge: Evaluate the role of government policy in both the economic growth of the 1920s and the onset of the Great Depression.
Independent Practice Teacher Answer Key
- 1. It was Harding's promise to restore the U.S. to pre-World War I conditions by focusing on domestic issues and reducing government intervention in the economy.
- 2. Reduced taxes gave businesses more money to invest in growth and new technologies, which helped increase production and profits.
- 3. Production efficiencies, like assembly lines, allowed factories to produce more goods at lower costs, making products more affordable and widely available to consumers.
- 4. While the 1920s prosperity was driven by policies promoting business growth and production, the Great Depression was caused by problems like high tariffs limiting trade, risky stock market speculation, bank failures reducing credit, and poor Federal Reserve policies, showing that the economic boom had underlying weaknesses.
- 5. Government policies like Harding's Return to Normalcy and tax cuts encouraged economic growth by promoting business expansion and consumer spending. However, policies such as high tariffs and inadequate Federal Reserve regulation contributed to economic instability, leading to the Great Depression. This shows government policy can both stimulate growth and, if mismanaged, contribute to economic crises.
Guiding Questions
- What was Warren Harding's Return to Normalcy and how did it affect the economy?
- How did reduced taxes encourage economic growth?
- What are production efficiencies and why are they important?
- What caused the Great Depression after the 1920s boom?
Common Misconceptions
- Economic growth in the 1920s was solely due to consumer spending; in fact, government policies and production efficiencies also played key roles.
- The Great Depression was caused only by the stock market crash; it was also caused by tariffs, bank failures, and monetary policies.
- Reduced taxes only benefited the wealthy; they also encouraged business investment and increased consumer spending.
Differentiation
Support and Intervention
Provide vocabulary lists and definitions for key terms. Use graphic organizers to help students organize information about causes and effects. Allow students to work in pairs or small groups for activities.
English-Language Learner Support
Use visuals and realia to support understanding of economic terms. Provide sentence frames for discussion and written responses. Pre-teach key vocabulary with examples.
Advanced and Extension
Encourage students to research additional economic policies of the 1920s. Have students compare U.S. economic policies with those of other countries during the same period. Assign a research project on the long-term effects of 1920s economic policies.
Assessment
- Group discussion responses about Harding's policies and economic growth.
- Charts or posters created during the explore phase.
- Notes taken during the explain phase discussion.
- Explain one cause of economic growth in the 1920s.
- Name one cause of the Great Depression.
- Write an essay analyzing how government policies contributed to both economic growth in the 1920s and the Great Depression.
Answer Guide
- What was Warren Harding's Return to Normalcy?
Answer: It was Harding's promise to restore the U.S. to pre-World War I conditions by focusing on domestic issues and reducing government intervention in the economy. - How did reduced taxes help the economy in the 1920s?
Answer: Reduced taxes increased business investment and consumer spending, which helped the economy grow. - What are production efficiencies?
Answer: Production efficiencies are improvements in manufacturing processes that allow more goods to be produced at lower costs. - Name one cause of the Great Depression.
Answer: One cause was stock market speculation, which created financial instability. - How did tariffs contribute to the Great Depression?
Answer: High tariffs limited international trade, reducing markets for U.S. goods and worsening the economic downturn.
Real-Life Application
Students can interview family members about stories or knowledge of the 1920s and the Great Depression to connect personal histories with historical events.
Homework or Home Connection
- Students can interview family members about stories or knowledge of the 1920s and the Great Depression to connect personal histories with historical events.
Lesson Summary
The 1920s were a time of significant economic growth and prosperity in the United States, driven by Warren Harding's Return to Normalcy, reduced taxes, and increased production efficiencies. These factors encouraged business expansion, consumer spending, and mass production. However, underlying problems such as tariffs, stock market speculation, bank failures, and Federal Reserve policies contributed to the Great Depression that followed. Understanding these causes helps students grasp the complexities of economic cycles and government influence on the economy.
Teacher Notes
Use the exact standards alignment and retrieved-source provenance stored with this enrichment.