The 1920s: Politics and Economy Quiz

The 1920s: Politics and Economics

• Spectator sports (baseball, basketball, football) gained popularity.
• Consumerism increased.
• Women's roles changed.
• The 1920 election saw a Democratic candidate (James Cox) advocating for the US joining the League of Nations, while the Republican candidate (Warren G. Harding) promised a "return to normalcy."
• Harding's administration was plagued by scandals, including the Ohio Gang and Charles Forbes's improper money collection. Albert Fall was involved in the Teapot Dome Affair.
• The Washington Naval Conference aimed to reduce naval size and respect possessions in the Pacific.
• The 4-Power treaty and 5-Power treaty were agreements on naval disarmament.
• The 9-Power treaty focused on respecting the open door policy in China.
• Calvin Coolidge, Harding's successor, prioritized economic fixes and cut taxes, aiming to put money into consumers' hands.

Coolidge Economy Efforts

• Coolidge sought to continue Harding's reforms, focusing on the transition from wartime to peacetime production to stimulate the economy.
• He reduced government spending and cut taxes to boost consumer spending.
• Government regulations were relaxed to allow business to thrive.

Consumerism Boost

• Cars became popular, especially the Model T, which Henry Ford made affordable for workers with wages and credit.
• Other consumer goods like radios, refrigerators, and washing machines were in high demand.
• Urban living surpassed rural living for the first time in the US.

Election of 1928

• Herbert Hoover ran for president, inheriting an already burgeoning economy.

New York Stock Exchange (1928)

• The Dow Jones Industrial Average reached a significant high in 1928.
• The stock market experienced heavy buying with speculation and margin buying (buying stocks with borrowed money).

Stock Market Crash

• The stock market experienced a major decline in 1929.
• The crash led to the Great Depression.

Causes of the Great Depression

• Poor diversification of the US economy, primarily relying on industrial output. Farm prices fell, which harmed agricultural economies.
• Over-reliance on durable goods; items that last long didn't consistently require replacement.
• Weak foreign demand, as other countries began producing their own goods and no longer relied on US products.

Hoover's Response

• Hoover's administrations failed to grasp the severity of the depression.
• Economic hardship led to widespread hardship, including unemployment and hunger.