The 1920s and The Great Depression - History PDF

The Roaring Twenties Politics and Social Change Aftermath of WWI & Politics of the 1920’s ► Americans wanted what Warren G. Harding described as: ▪ “A Return Normalcy.” ► Three trends became evident because of the desire for normalcy: ▪ Renewed Isolationis...

The Roaring Twenties Politics and Social Change Aftermath of WWI & Politics of the 1920’s ► Americans wanted what Warren G. Harding described as: ▪ “A Return Normalcy.” ► Three trends became evident because of the desire for normalcy: ▪ Renewed Isolationism, ▪ A resurgence of nativism, ▪ A trend toward political conservatism.  Emerging Economic Tensions ► Demobilization causes massive unemployment ▪ not prepared for transition to postwar economy ▪ factories closed, crop prices fell ▪ supply was up, demand collapsed ▪ 5 million former soldiers were jobless ► Inflation and Recession ▪ Americans went on spending spree = inflation ► by 1920 prices doubled ► standard of living dropped ► recession - decline of economic activity ► uptick in crime  Threats and Problems Arise in America ► Communism: single party dictator government, no private property ▪ Red Scare: 70,000 joined the Red Party, there was fear that Communist would take over the U.S. ► A. Mitchell Palmer: U.S. Attorney General, takes action. ► Palmer Raids: – Hunt down suspected Communists, socialists, and anarchists ► Nicola Sacco and Bartolomeo Vanzetti- 1920, wrongly accused of a murder that took place in Braintree, Massachusetts. The men had alibis, the evidence was circumstantial, judge was prejudice. The witnesses said the men were Italian; charged with the murder and found guilty. Executed on August 23, 1927.  Increasing Social Tensions Revival of Nativism- averaging 800k people a year immigrating per year - feared immigrants taking jobs - worked for less money, accepted working conditions trying to get established Revival of the Ku Klux Klan - portrayed itself as a defender of American values - set itself against African Americans, immigrants, Catholics, and Jews - membership was 3-4 million members - massive marches in DC and violence and intimidation returned  Enduring Racial and Religious Tensions Asians and African Americans Face Discrimination - legal discrimination, citizenship barriers, land ownership, ban on interracial marriages - Black veterans had trouble finding jobs - Lynching returns - 70 in 1919 Red Summer - 1919 over 30 racial riots across US - most notable were Chicago, Omaha, and Arkansas - over 300 blacks killed - 1921 - Tulsa race riot - Greenwood - burned, 300 killed, buried in mass graves Marcus Garvey - Back to Africa movement “KEEP AMERICA FOR AMERICANS” ► Emergency Quota Act of 1921: set up the maximum number of people who could enter the U.S. from each foreign country ▪ Reduced immigration by 150,000 a year ▪ Prohibited Japanese Immigration  President Warren G. Harding “Return to Normalcy” - welcomed public to White House after inauguration ▪ Free enterprise system - competition for profits and supply/demand determines markets ▪ Fiscal policy - approach to taxes and govt spending ► repealed taxes, cut spending - saved $1 billion in spending - paid down national debt ► brought renewed prosperity, prices dropped, unemployment dropped 10%. ► Teapot Dome Scandal - ▪ oil reserves involved in bribery scandal ▪ Sec of Interior - Albert Fall - 1st cabinet member convicted ▪ Brought a dark cloud over Hardings presidency ► Harding dies after suffering heart attack, Coolidge is sworn in  Silent Cal and Hoover Nicknamed Silent Cal- was a man of few words - continued Hardings fiscal policy - “man who builds a factory, builds a temple” - Re-elected in 1924 - Coolidge cut taxes further - America continues to prosper - Coolidge decides not to run again Herbert Hoover - rugged individualism - as business’ flourish, poverty will decrease - wanted to improve economic efficiency  Engaging the World in an Era of Isolationism Harding, Coolidge and Hoover were not isolationists - foreign trade connects Americans with rest of world Refusal to join League of Nations - - Harding campaigned to join, then changed course - public distrust of foreign nations - didn’t even open mail, letters, or correspondence from them. Disarmament - disabling ships and other war machines, set example for world Kellogg Briand pact - 62 nations signed agreement to outlaw war Dawes Plan - France and G.B. owed US $11 Billion - that debt was paid by German reparations - Germany stopped paying reparations in 1923, US loaned them the money to pay - See any problems here?  Scandal and Teapot Dome ► Harding’s Cabinet: the Ohio Gang ▪ Presidents poker buddies that would cause him trouble ► Teapot Dome Scandal: ▪ oil-rich land in Teapot Dome Wyoming set aside for the Navy ▪ Albert B. Fall got land transferred to the Interior Department, and leased the land to the Sinclair oil company ▪ Fall found guilty of bribery, first person convicted of a felony while holding a cabinet post ▪ Harding died in 1923 and Calvin Coolidge became President  The Business of America ► By 1929 the US was producing 40% of the worlds goods ► Henry Ford - mass production of model A in 1927 ▪ brand new car cost $290 ▪ by 1929 at least half of American families owned a car ▪ by 1930 20 million cars were produced ► Forever changes the American economy ▪ Paved roads, new houses came with garages, rapid growth of gas stations, public garages, motels, diners ▪ Isolated farmers connected with big cities ▪ People drove to work, instead of walk ▪ 1926: Route 66 is built from Chicago to Los Angeles ▪  Americans take to Air and Roads ► Airplanes proving their usefulness ▪ surplus after war, starting using them for everyday tasks ▪ Barnstorming- stunt pilots putting on airshows, wingwalkers ▪ largest use was transporting mail ▪ Ford starts building airplane engines ► Charles Lindbergh - barnstormer ▪ first trans Atlantic flight ▪ instant American hero, world famous ▪ Lindbergh baby kidnapping ► Amelia Earhart - first women to complete flight, disappeared ▪ proved women were capable of doing what men could do ►  Americans Buy into Consumer Culture ► Consumer Culture - consumption of large amounts of goods is good and a source of personal happiness ▪ George W Carver - made more than 300 products from peanuts, 75 from pecans, 100 from sweet potatoes ▪ New products make life easier - pop up toaster, flash frozen food, vacuum cleaner, washing machines and irons, refrigerators and stoves ► Golden age of advertising and marketing - convinced people they needed latest and greatest ► ► Average Annual income up to $705 a year ► National income up to $87 billion from $64 ► Big business and chain stores grew rapidly ► Larger gap between workers and managers ► Installment Plan: but goods on credit, pay over an extended period of time ▪ by 1929, 15% of all goods were purchased on installment ► The economy boomed, stock market soared ▪ Could this last?  Growing Traditionalist- Modernist Divide ❖ 1920 census reveals 50% of Americans live in cities 19 million move from farms to cities ❖ Wages rise 37%, standard of living improves ❖ Farm prices and demand plummet rural =traditonal urban = modern ❖ Rise in religious fundamentalism religious text should be taken literally and used as authority on behavior - Billy Sunday ❖ Modern culture pushes back College enrollment increases school, clubs, sports, music, dances, dating, movies, and crazy fads (flagpole sitting) what seems mainstream today was radical in 20’s ❖ Traditionalists respond - censorship, dress codes ❖ Scopes Monkey Trial - evolution vs creationism guilty, fined $100  Prohibition- Wets vs Drys 18th Amendment - 1920- Volstead Act enforced law ○ Drys - backers of Prohibition- centered mainly in rural areas ○ Wets - opponents of Prohibition - large cities and immigrants Argument turned religious - Jesus/water/wine Prohibited the manufacture, sale, and transportation of alcoholic beverages Speakeasies became a huge trend: underground, hidden saloons where middle-class and upper-middle-class would drink Bootleggers: smugglers practice of carrying liquor in the legs of boots. Alcohol was brought in from Canada, Cuba, and West Indies. Every major city had their own crime boss  Al “ Big Fellow” Capone Headed criminal empire in Chicago: used bribes and violence Bootlegged whiskey, operated illegal breweries, and ran a network of 10,000 speakeasies Was worth more than $100 million In 1931, he was arrested for tax evasion That was the only crime he could be arrested for since they could not prove anything. He was later released from prison and died at the age of 48  Women Make a Change ❖ 19th Amendment - 1920 ❖ Former suffragettes remained active in politics Jeannette Rankin - 1st female in Congress Two female governors by 1926 ❖ ERA - Equal Rights Amendment lobbying for, not passed until 1972 ❖ ❖ Flapper Era Change appearance: short “bobbed” hair, short dresses, drink, smoke, and dance in public. Makeup was no longer a sign of immorality ❖ Job opportunities opened - women in professions rose by 50% ❖ ❖ Many double standards appear that dealt with courtship and relationships. # of divorces doubled  ‘20’s Pop Culture and Education ► High School enrollment was up, offered a broad range of courses ► Widespread education increased literacy in US ► Forming of mass culture: newspapers and magazines covered both foreign and domestic news ▪ Saturday Evening Post, Ladies Home Journal, Readers Digest, TIME ► Radio: people could now listen to events live, such as a Presidential speech or the World Series ▪ first mass radio event was Jack Dempsey boxing match ▪ first radio network eventually becomes NBC ▪ comedy, drama, and music programs, much like podcasts today ► Motion pictures create movies stars ▪ Jazz Singer - first “talkie” ▪  Jack Dempsey George Herman Ruth aka “the Babe” Jim Thorpe considered best all around Athlete ever Gertrude Ederle swam the English Channel Helen Wills World Record holder  Writers and Artists ► Great Migration: millions of African –Americans leave South - move to large northern cities ▪ African American neighborhoods develop ► Harlem Renaissance - artists, writers and musicians gathered and shared their works ▪ Langston Hughes, Zora Neale Lost Generation - writers critical of American ideals and values - E.E Cummings, Ernest Hemingway, F. Scott Fitzgerald - writing captures American feeling after war - moral emptiness of upper class culture (Gatsby)  The Jazz Age ► Jazz - distinctive American musical form ▪ Mix of Blues and Ragtime ► syncopation of ragtime, deep feelings of blues, added improvisation ► Born in New Orleans, La ► Many musicians couldn’t read music, began to make up melodies ▪ Music traveled north with railroads and boats ▪ Harlem nightclubs housed all famous jazz musicians ▪ Duke Ellington- piano ▪ Benny Goodman - clarinet ▪ Jelly Roll Morton - first to write jazz down ▪ Louis Armstrong - trumpet ▪ Cab Calloway - scat style ▪ Along with music comes dance ► Charleston  Economic Troubles on the Horizon ► 1. Industry: little profit (construction was down by 25%) ► railroads, textiles, and steel companies barely made a profit ► Goods in high demand during the war were no longer needed as much ► 2. Farmers: foreclosure (demand up during WWI) ► After the war, demand for crops dropped 40% ► 3. Consumers: less spending money ► Raising prices and falling wages forced consumers to buy less ► 4. Credit encouraged: “buy now pay later” ► Consumers had trouble paying off growing debt ► 5. Uneven income distribution  th Stock Market Crash: October 29 1929 ► Black Tuesday: the bottom fell out of the stock market ► Bull market vs. Bear market ► Speculation leads to overpricing ► Buying on the margin (borrow $) ► People frantically tried to sell stocks ► 16.4 million shares of stock were sold that day ► Americans fell into debt and went from affluent lives to poverty ► October 24th ▪ “Many Accounts Wiped Out” ► October 30th ▪ Stock Prices slumped $14 billion dollars ▪ New York Times  Causes of the Great Depression ► 1. old industrial base (outdated equipment) 2. farm sector= too much production 3. consumer debt leads to purchasing on the installment plan 4. Unequal income distribution ALL OF THE ABOVE LEAD TO FALLING DEMAND FOR PRODUCTS  Financial collapse ► People panicked and tried to get their money out of banks ► The banks didn’t have the money because they had invested it in the stock market ► 1. Banks: ▪ 1929-659 close 1933-6,000 ▪ No deposit insurance leads to over 9 million people losing all ► 85,000 businesses go bankrupt ► Unemployment rises (3% in 1929 to 25% in 1933) ► Many people lost their homes and lived in shantytowns called Hoovervilles (small towns with houses made of scrap metal and crates) and ate at soup kitchens ► Worldwide effects: the depression limited the amount of money the U.S. could lend Germany Cities Rural  Dust Bowl ► Farmers had overused the soil ► Drought ravaged the Midwest ► Dust storm forced farmers off their land  President Hoover and the Depression ► Hoover tries to reassure people that the economy will be fine, that this was part of the “business cycle” ► Builds Boulder Dam (later called Hoover) ▪ Wanted to jump-start economy and provide jobs so he created projects ▪ The dam would generate electricity and provide flood control ► Federal Home Loan Bank Act of 1933 ▪ Lowered mortgage rates and allowed people to refinance their loans to avoid losing their homes ▪ Hoover was on the right track ► But for him it was to late  Bonus Army Hurts Public Opinion ► WWI Vet’s were promised compensation (Avg. $500) for their service to be paid by 1945. ► 15,000 vet’s: the Bonus Army showed up in D.C. ► Hoover brings in army to disband “bonus army”  A New Deal Fights the Depression ► The American people were ready for a change ► Election of 1932: Franklin Delano Roosevelt ► New Deal: focused on relief for the needy, economic recovery, and financial reform ► 100 Days: period of intense activity when Roosevelt enacted 15 major pieces of legislation ▪ Expanded the role of government in the economy ► Glass-Steagall Act: established the Federal Deposit Insurance Corporation (FDIC) ▪ Insured bank accounts up to $5,000 ► Federal Securities Act: all public corporations had to provide complete information about stock offering, ▪ Securities and Exchange Commission (SEC) ► Regulate stock market and prevent insider trading ► Roosevelt also got Congress to pass a bill to allow the sale of some alcohol, in order to tax it and raise money ▪ Eventually became the 21st Amendment, repealing prohibition ► Agricultural Adjustment Act (AAA): raised the price of crops by lowering production, with less of a supply prices would go up. ► Civilian Conservation Corps (CCC): created jobs for men 18-25 building roads, parks, etc… ▪ Over 3 million men were given jobs ► Federal Housing Administration: furnish loans for home mortgages and repairs ► With all of these new programs Roosevelt agreed to deficit spending: spending more money than the government made in revenue ► There were still critics: people who thought the New Deal interfered with the free-market economy  The Second New Deal ► 1935: second burst of activity to continue boosting the economy, aimed at diminishing unemployment and helping farmers and workers ▪ Works Progress Administration (WPA): main goal was to create as many jobs as possible ▪ National Youth Agencies (NYA): provided education, jobs, counseling, and recreation for young people ▪ Greatly influenced by Eleanor Roosevelt who urged for the help of African-American, women, and minorities ► 1936 Election: Roosevelt easily elected providing a vote of confidence for his programs ► Social Security Act of 1935- ► Old Age insurance for retirees over 65 and their spouses. ► Unemployment compensation system. ► Aid to farmers with dependent children and the disabled. ► *Rural Electrification Administration provided electrical power to rural areas Overall Impact of the New Deal: ► Economy on Upswing. ► Federal government expanded power. ► Boosted the rights of workers to unionize. ► Aided nations farmers. ► Banking and finance reforms. ► Development of Social Security.