1920s: Republican Views & Consumer Trends

Republican Views of Government in the 1920s

• Laissez-faire describes the Republican approach, where the government avoided intervening in business.
• President Coolidge exemplified this, stating, "The business of America is business," advocating for minimal government interference.
• Isolationism defined the U.S. foreign policy, avoiding involvement in international conflicts, specifically European affairs.
• The U.S. demonstrated this by not joining the League of Nations.
• Tariffs, like the Fordney-McCumber Tariff of 1922, increased taxes on foreign goods to protect U.S. businesses.

Consumer Trends of the 1920s

• Credit allowed people to purchase items immediately and pay for them later, facilitating the purchase of expensive items like cars.
• Many Americans bought items on credit, but were unable to pay back loans during the Depression.
• Advertising drove consumer demand, encouraging people to purchase new products.
• Billboards and radio ads encouraged spending, often beyond people's means.
• A strong economy meant that many had jobs and money to spend.
• Henry Ford’s assembly line made the Model T affordable, significantly increasing car ownership.
• Stock speculation involved buying stocks with borrowed money, which proved problematic when the market crashed.
• Buying stocks "on margin" contributed to the Great Depression.

Progressive Era vs. New Deal

• The Progressive Era sought to address societal problems like corruption and unsafe working conditions through reform.
• The Pure Food and Drug Act (1906) was created to make sure medicines were safe to take.
• The New Deal was a direct response to the Great Depression, with the government intervening to provide relief and rebuild the economy.
• The Social Security Act (1935) provided funds for the elderly, disabled, and unemployed.
• Progressives aimed for gradual change whereas, the New Deal sought immediate action to address a crisis.

Spending in the 1920s & How People Paid

• Installment plans allowed people to pay for items in smaller increments over time.
• Auto loans made cars more accessible and affordable.
• Stocks on margin involved borrowing money to invest, increasing risk.
• Excessive debt contributed to the stock market crash in 1929.

New Deal: Fans vs. Critics

• Supporters believed the New Deal created jobs, built infrastructure, and secured banks.
• The WPA (Works Progress Administration) generated jobs by constructing roads, bridges, and schools.
• Critics argued the government was too involved and that it interfered with business.
• The NRA (National Recovery Administration) attempted to set business codes but was deemed unconstitutional by the Supreme Court.

Hoover’s Response to the Depression

• Hoover initially waited, believing the economy would eventually correct itself.
• He favored aid for businesses rather than direct relief for individuals.
• Hoover emphasized individualism, encouraging people to take personal responsibility.
• Many Americans were frustrated with him and the Bonus Army protest further damaged his reputation.

Marcus Garvey’s Beliefs

• Black nationalism described Garvey’s advocacy for Black pride and independence.
• Garvey urged Black Americans to support Black-owned businesses.
• He promoted separation from white society, advocating for separate Black institutions.
• Garvey supported the Back to Africa movement, encouraging Black Americans to return to Africa to escape discrimination.
• He founded the UNIA (Universal Negro Improvement Association), which supported the Black Star Line.

Prohibition: Reasons & Effects

• The 18th Amendment banned alcohol.
• Crime increased, and figures like Al Capone thrived by selling illegal alcohol.
• Drinking continued in secret establishments called speakeasies.
• Prohibition was hard to enforce and led to increased crime.
• Police officers also violated the law.
• The 21st Amendment repealed Prohibition in 1933.

Opposing Feelings About America in the 1920s

• New technology, jazz music, and women's rights symbolized the "Roaring 20s".
• The Charleston dance and jazz were symbols of the “Roaring 20s.”
• The stock market crash, income inequality, and struggling farmers represented the economic downturn.
• Farmers were in debt, and the stock market crash ruined many people’s savings.

Effects of the Great Depression & Fixes

• The stock market crash caused people to lose savings and businesses to fail.
• Bank failures led to the loss of people's savings.
• People became jobless, homeless, and hungry.
• Franklin Delano Roosevelt's (FDR) New Deal sought to address these issues.
• Infrastructure projects created jobs, like building dams, bridges, and schools.
• The FDIC (Federal Deposit Insurance Corporation) and SEC (Securities and Exchange Commission) secured banks and regulated stocks.
• Emergency relief welfare programs helped people.
• Programs like Social Security were created as safety nets to prevent future poverty.