1920s Tech & Industry: Autos, Radio, & Consumerism

Technological and Industrial Advancements

• Mass production, using assembly lines pioneered by Henry Ford, transformed the automobile industry, making cars like the Model T affordable
• The auto industry spurred growth in rubber, steel, and petroleum sectors
• Automobiles reshaped American life by boosting the economy through new business opportunities and expanding access to urban areas

The Consumer Goods Industry

• "Buy Now, Pay Later" plans allowed consumers to purchase expensive items with small down payments and monthly installments
• A large percentage of goods were bought on credit, including automobiles, furniture, and home appliances
• Supermarkets, such as Piggly Wiggly, Safeway, and A&P, experienced significant growth

The Radio Industry

• The invention of long-range radio transmission was made possible by Edwin Armstrong in 1913
• KDKA in Pittsburgh broadcasted the first radio program in 1920, followed by the creation of NBC and CBS in the 1920s
• The Federal Radio Commission was established in 1927 to regulate radio broadcasts

Welfare Capitalism

• Companies began offering employee benefits like stock options, profit-sharing, and pensions
• The influence of unions declined during the 1920s
• Many workplaces became "open shops," where union membership was not obligatory

American Farmers

• Despite advances in technology and farming techniques, farmers earned less compared to industry workers
• Overproduction led to lower prices for crops like corn and wheat, negatively impacting farmers' incomes

The Policies of Prosperity

• Andrew Mellon’s program aimed to cut taxes, reduce government spending, and balance the budget
• Tax cuts helped stimulate the economy
• Lower taxes were intended to boost investment and economic growth, which in turn would result in higher government tax revenue known as supply-side economics

Trade and Arms Control

• After WWI, Americans wanted to avoid involvement in foreign conflicts and adopted Isolationism
• The Dawes Plan aimed to stabilize Europe’s economy by having the U.S. lend money to Germany, which would then pay reparations to Allies
• The Kellogg-Briand Pact, signed in 1928 by 15 nations, sought to outlaw war, but had minimal impact

The Great Depression

• The Great Depression, the worst economic crisis in U.S. history, began in 1930, leading to unemployment and poverty
• By 1932, 25% of the workforce was unemployed, with higher rates among African Americans
• Many banks failed, eliminating savings for millions, and businesses went bankrupt
• Soup kitchens and shelters were essential for survival as people migrated to find work

Get Rich Quick

• Land in Florida was bought speculatively, leading to a price collapse
• Many Americans bought stocks on margin, borrowing to speculate, resulting in inflated stock prices
• The stock market crashed in October 1929, wiping out billions and starting the Great Depression

The Great Depression and Causes

• The stock market crash worsened existing economic weaknesses like overproduction, bank failures, and reduced consumption, but did not cause the depression
• Unemployment led to decreased consumption, hurting businesses and creating a downward economic spiral

Herbert Hoover's Presidency and the Depression

• Hoover became president in 1928 and confronted the Great Depression
• Hoover’s attempts at intervention were seen as inadequate and unpopular as the Depression worsened
• Hoover's policies, which included public works such as the Hoover Dam and the Reconstruction Finance Corporation (RFC) to support businesses, were criticized for being too limited and focused on helping big business
• Hoover believed in "rugged individualism," asserting that individuals, not the government, should solve economic issues, opposing large-scale government relief programs

The Dust Bowl

• Farmers, already struggling due to over-farming and drought in the 1930s, contributed to the Dust Bowl
• Many farmers, particularly from Oklahoma, fled west to California as crops dried up, becoming known as "Okies"

Episodes of Violence

• Economic hardship led to violent protests, such as farmers dumping milk and withholding hogs to protest low prices
• The Bonus Army protest, where WWI veterans demanded their bonuses, was significant. Hoover’s handling damaged his reputation

Franklin D. Roosevelt’s Rise

• Roosevelt became a symbol of hope with his reassuring inaugural speech that stated "only thing we have to fear is fear itself"
• He created the "New Deal" to combat the Depression
• Eleanor Roosevelt played a role as a political figure, advocating for women, labor rights, and African American issues

The New Deal and its Early Successes

• Roosevelt's first 100 days were marked by major actions to address the crisis
• The Emergency Banking Act restored trust in banks by reopening only stable banks
• Farm Credit Administration & Home Owners’ Loan Corporation assisted farmers and homeowners with debt refinancing
• The Federal Emergency Relief Administration provided direct relief to states for the unemployed
• The Securities Act & Glass-Steagall Act regulated the stock market and separated commercial and investment banking

New Deal Programs

• The Civilian Conservation Corps (CCC), Civil Works Administration (CWA), and Works Progress Administration (WPA) created jobs for infrastructure, arts, and conservation projects
• The National Industrial Recovery Act (NIRA) aimed to bring order to the economy by setting codes for industries, although the Supreme Court later deemed it unconstitutional

Challenges and Criticism

• The NIRA was struck down in 1935, as were other some New Deal programs by the Supreme Court
• Roosevelt adjusted his policies in reaction to these actions

Agricultural Policy

• The Agricultural Adjustment Act (AAA) aimed to increase farm income by decreasing production
• Farmers were paid to keep land idle to boost crop prices

Agricultural Adjustment Act (AAA)

• The AAA aimed to reduce crop surplus and raise prices for farmers
• Destroying crops and livestock was controversial, where 6 million pigs were slaughtered, and a quarter of the cotton crop was plowed under in 1933
• Higher prices and income increases for farmers resulted, and the loss of jobs for tenant farmers and displacement of many poor families occurred
• The AAA was ruled unconstitutional by the Supreme Court, but its key elements were preserved under the Soil Conservation and Domestic Allotment Act

Rural Electrification Administration (REA) & Tennessee Valley Authority (TVA)

• The REA electrified rural areas
• The TVA aimed to control flooding and provide electricity with dams
• Big business criticized these projects, leading to the American Liberty League, which accused Roosevelt of undermining free enterprise

Labor and Workers' Rights

• The Wagner Labor Relations Act supported unions
• The National Labor Relations Board was established to investigate unfair labor practices
• The Act ensured that unions could represent workers who voted for them

FDR and the Supreme Court

• FDR attempted to "pack" the Supreme Court with judges sympathetic to his New Deal policies
• The plan was met with strong opposition in Congress and failed however over time, vacancies allowed FDR to appoint more friendly judges

Political Opponents of FDR

• Figures like Father Charles Coughlin, Dr. Francis Townsend, and Huey Long criticized Roosevelt
• Coughlin initially supported the New Deal but later advocated for radical monetary reforms
• Townsend proposed pensions for the elderly
• Long called for wealth redistribution
• These movements did not gain widespread support

Foreign Policy – The “Good Neighbor” and Isolationism

• Roosevelt's foreign policy focused on improving relations with Latin America through the "Good Neighbor" policy
• The "Good Neighbor" policy included renouncing the Platt Amendment, which limited Cuban sovereignty
• The Stimson Doctrine opposed Japanese territorial expansion in China
• Roosevelt recognized the Soviet Union and pushed for lower tariffs with trade agreements

Isolationism and Neutrality Acts

• U.S. public opinion favored isolationism, with most believing the country should avoid foreign conflicts
• The Neutrality Acts of the 1930s aimed to prevent the U.S. from being drawn into wars
• This was achieved by restricting arms sales and loans to belligerent nations and provided caution when traveling on ships of nations at war

World War II - Nazi Expansion

• 1938: Austria was invaded and anti-Jewish laws were enforced
• 1939: Poland was invaded, marking the start of WWII
• 1940: Denmark, Norway, Belgium, Holland, and France were invaded and surrendered by June 1940 leaving Great Britain as the last major democracy fighting Hitler

Appeasement

• Western nations like Britain and France followed a policy of appeasement
• Appeasement hoped to avoid war by allowing Germany to take Czechoslovakia in 1939

Rise of Fascism and Totalitarianism

• Benito Mussolini (Italy) founded Italy’s Fascist Party in 1919, emphasizing aggressive nationalism and a strong dictatorship, and invaded Ethiopia in 1935
• Joseph Stalin (USSR): After the Russian Revolution, Stalin took control in 1926, and led the forced industrialization of the USSR
• Adolf Hitler (Germany): A fervent anti-communist and admirer of Mussolini, Hitler led Germany from 1933, and resented the Versailles Treaty and its harsh terms for Germany

New Deal Programs

• The New Deal, initiated by President Franklin D. Roosevelt in response to the Great Depression which included programs designed to provide relief, recovery, and reform

Agricultural Adjustment Act (AAA): 1933

• The AAA provided subsidies to farmers to reduce production, raising crop prices and preventing soil erosion

Civil Works Administration (CWA): 1933

• The CWA created public works jobs, employing millions of workers to help with infrastructure projects

Civilian Conservation Corps (CCC): 1933

• The CCC employed young men for conservation work, such as reforestation, helping to reduce unemployment and provide income

Federal Emergency Relief Act (FERA): 1933

• The FERA distributed direct aid to the unemployed to help alleviate immediate financial distress

Glass-Steagall Act (FDIC): 1933

• The Glass-Steagall Act established the Federal Deposit Insurance Corporation (FDIC) to insure bank deposits and prevent future bank failures

National Industrial Recovery Act (NIRA): 1933

• The NIRA established the National Recovery Administration (NRA) to enforce fair business practices, minimum wages, and labor rights, including collective bargaining

Public Works Administration (PWA): 1933

• The PWA allocated funding for large public works projects, providing jobs and infrastructure improvements

Rural Electrification Administration (REA): 1935

• The REA encouraged rural communities to join cooperatives to bring electricity to farms

Social Security Act (1935)

• The Social Security Act Created pensions, unemployment insurance, and aid for the disabled, elderly, and dependent children

Works Progress Administration (WPA): 1935

• The WPA employed millions in construction projects and provided work in the arts, theater, and literature