The Roaring Twenties: The Economic Boom

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The Roaring TwentiesThe Economic Boom

• Mr. Bach
• Hudson High School
• Accelerated United States History

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The Engine of the Boom

• The Model T

Any customer can have a car painted any color
that he wants so long as it is black. Henry
Ford
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The Detroit Auto Industry

• How did the Automobile change
• Industrial Production Techniques
• Labor Relations
• Other industries
• American social life

4
A Culture of Consumerism

• Buy, Buy, Buy!

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Installment Buying The Ancestor of Credit Cards

• What are the benefits of buying with credit?
• What are the detriments of buying with credit?

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Discover Student Card
Annual Percentage Rate (APR) for Purchases 0.0 until June 2009 then the standard APR, 14.99 variable
Other APRs Cash Advances 23.99 Default Rate up to 30.99
Grace Period At least 25 days when you pay your balance in full each month
Annual Fee None
Minimum Finance Charge .50
Other Fees Cash Advance Transaction Fee 3 for each cash advance, with a minimum of 5 and no maximum. Late Fee 19 on balances up to 250 and 39 on balances over 250. Overlimit Fee 15 on balances up to 500, and 39 on balances over 500.
If you are late making a payment or your account
is overlimit twice, we may increase your APR to
the default rate. Any special or introductory
offers may terminate as well.
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May 2009

• Mary, a senior at Hudson High School, applies and
  receives her first credit card, the Discover
  Student Card, at age 18. She is given a credit
  limit of 1,000.
• While shopping for a prom dress, Mary sees the
  perfect dress at Jessica McClintock at Beachwood
  Place. The dress costs 600, but it is
  absolutely perfect, and Mary is sure no other
  girl will have this dress at the prom because it
  is a one-of-a-kind. Mary buys the dress on May
  1, 2009 with her Discover Student Card.

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June 2009

• Mary receives her billing statement on June 1,
  2009. It lists the balance of 600 for the dress
  and in bold it states the minimum payment due
  is 20. Mary mails in a check for 20. Assuming
  she makes no more purchases during the month of
  June, what will her next statement on July 1,
  2009 read?
• 600 (balance for dress)
• - 20 (payment towards balance)
• 580 (remaining balance) 14.99 86.94
  (interest) balance 666.94

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July 2009

• Mary receives her statement on July 1, 2009 but
  she decides to send in no money (she overspent
  her cash during June). Assuming she makes no
  more purchases on her credit card during the
  month of July, what will her statement read on
  August 1, 2009?
• 666.94 14.99 99.97 (interest) balance
  766.91 39 (late fee) 805.91

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August 2009

• Mary receives her statement on August 1, 2009,
  but she decides to send in no money (she lost her
  part-time job at Cali Juice and her parents are
  using tough love and refuse to bail her out).
  Assuming she makes no more purchases on her
  credit card during the month of August, what will
  her statement read on September 1, 2009?
• 805.91 14.99 120.81 (interest) balance
  926.72 39 (late fee) 965.72

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September 2009

• Mary receives her statement on September 1, 2009
  she is so depressed she tears it up and refuses
  to even open it. Assuming she makes no more
  purchases on her credit card during the month of
  July, what will her statement read on October 1,
  2009?
• 965.72 30.99 299.28 (interest) balance
  1265.00 39 (late fee) 39 (overlimit fee)
  1343.00

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What would have been the wisest thing for Mary to
have done back in May?
Dont Buy the Dress She Cannot Afford it!
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A Growing Danger???

• Buying on Margin The Stock Market Bubble of the
  1920s