The Prosperity Decade and Era of Wonderful Nonsense Ends in a Crash

1. The Prosperity Decade and Era of Wonderful Nonsense Ends in a Crash Monkeys, Traitors, Consumers, and The Economics of the Roaring Twenties – Stock Market Crash 1919-1929

3. My best judgment of America's needs is to steady down, to get squarely on our feet, to make sure of the right path. Let's get out of the fevered delirium of war,. . . . Let us stop to consider that tranquility at home is more precious than peace abroad, and that both our good fortune and our eminence are dependent on the normal forward stride of all the American people. ... • Warren G. Harding "Return to Normalcy," Boston, MA, May 14, 1920

4. Return to Normalcy? Could the nation return to what life was before the United States’ involvement in WWI? Let’s take a look at the United States in 1919 …

5. Foreign Policy • “My Fellow Countrymen: the armistice was signed this morning…. It will now be our fortunate duty to assist by example, by sobering friendly counsel, and by material aid in the establishment of just democracy throughout the world.” • We would not have our politics distracted and embittered by the dissensions of other lands. We would not have our country’s vigor exhausted, or her moral force abated, by everlasting meddling and muddling in every quarrel which afflicts the world.”

6. Nothing is too good for you, my boy! What would you like? Returning soldiers faced unemployment or took their old jobs away from women and minorities. A job.

7. Inflation: Increased Cost of Living

8. Anticipatory Set Often when a person is faced with something they feel threatened by they react with fear or aggression. Think about a time when you felt like you were being attacked mentally or physically and you reacted with fear or aggression. Take a minute write down what happened, how you felt, and how you reacted. Following WWI, the people and government of the United States faced new developments in the world that caused them to react with fear and aggression.

9. Many Americans respond to the stressful conditions by becoming fearful of outsiders.

10. Fear of Communism “The nation went on thinking with a mind of a people at war. They had learned during the preceding nineteen months to strike down the thing they hated; not to argue or hesitate, but to strike. Germany had been struck down, but it seemed that there was another danger on the horizon. Bolshevism was spreading from Russia through Europe; Bolshevism might spread to the United States. They struck at it – or at what they thought was it.” - Frederick Lewis Allen Only Yesterday

11. The Red Scare • Where does it come from? • 1919 revolutionaries led by Vladimir Lenin overthrew the monarchical czar government • Established a communist state • Waved a symbolic red flag – a.k.a. “Reds” • Cried out for worldwide revolution that would abolish capitalism everywhere

12. The Red Scare • Where did it show up here? • Communist Party forms • Some members of the Industrial Workers of the World (IWW) Union joined the Communist Party

13. The Red Scare • A Series of bombs being sent to government and business leaders increased fears of the spread of communism. • Attorney General A. Mitchell Palmer’s residence was bombed

14. Palmer Raids • Attorney General Palmer appointed J. Edgar Hoover as special assistant • Hunted down suspected Communists, socialists, anarchists

15. Palmer Raids trampled people’s civil rights

16. Fear of Outsiders • Nativism – Favoring the interests of native-born people over foreign-born people • Need for unskilled labor decreased • 1919-1921 immigration increased from 141,000 to 805,000 (600%)

17. Limiting Immigration • Quota System – maximum number of people who could enter the US from each country • Limited immigration to 2% of a country’s nationals living in the US in 1890. • Discriminated against Eastern and Southern European countries • Prohibited Japanese immigration

19. Return of the Klan • “100 percent Americanism” • Discriminated against blacks, Jews, Roman-Catholics, immigrants, Communists, unions, saloons • 4.5 Million members

20. Fear of Labor • During WWI the government did not allow strikes and unions promised to adhere to this policy in support of our nation at war. • Following WWI – • Management wanted a return to laissez-faire • Workers pressed for higher wages, etc.

21. Boston Police Strike Demanded higher wages Leaders fired; Officers strike Governor Calvin Coolidge brings in National Guard to end strike Striking police replaced U.S. Steel Mill Strike Demanded higher wages and shorter work hours Managements refused to negotiate 300,000 workers on strike Management used propaganda to paint strikers as Communists Public report displayed poor conditions – workers got 8-hour work day, but no Union “Plots to Establish Communism” or Fighting for Your Rights

23. Coal Miner’s Strike • Led by John L. Lewis demanding better wages and shorter workdays • Disobeyed court order to stop strike • President Wilson appointed an arbitrator • Coal Miners received wage increase

24. Labor Loses Appeal • Much of the workforce were immigrants willing to work in poor conditions • Immigrants spoke many different languages making it difficult to organize • Migrating farmers used to hard work • Most unions excluded African Americans • Connected publicly to Communists

26. Sacco & Vanzetti • Italian immigrants and anarchists tried for the robbery and murder of a factory paymaster in South Braintree (Boston)

27. Boston

29. Why did Attorney General A. Mitchell Palmer launch a series of raids against suspected Communists? • He believed Communists wanted to overthrow the government and ruin our economy. He also may have hoped to ride the wave of public support all the way to the White House.

30. Communism – Economic and Political system based on a single-party led by a dictatorship • Bolshevism – Majority, Worker – Name attributed to the communist revolution in that it was a “worker’s revolution.” • Arbitrator - a person chosen to decide a dispute or settle differences • Anarchist – one who believes in no established government