Demobilization leads to economic turmoil

1. Unit: The 1920sEssential Question: To what extent do the 1920s illustrate growing dichotomy in American society?Focus: Demobilization

2. Demobilization leads to economic turmoil • Demobilization- the return to a peacetime economy • Government agencies let go of their controls on Industry • Businesses raised prices they had been forced to keep low during the war -demand for consumer goods outsripped supply leading to the ________ in prices. (cost of living doubled) • Effects: Rapid inflation- the lowering of the value of money. • If prices for the cost of living go up your money buys you less. • During the war, industries were forced to raise wages (concessions given to workers) inflation caused workers to lose their economic gains. • Inflation caused operating costs for companies to rise- employers wanted to keep wages low.

3. Demobilization leads to economic turmoil Cont. • Post War Recession • Government cancelled about $2 billion in war contracts. (heavy industry) • Factories responded by cutting back production and laying off workers. • Farm Crisis- American farmers were expanding to produce food for European markets during the war – When Europe began producing their own food demand dropped- Farmers lost land.

4. Economic Turmoil leads to Racial Tensions • The Great Migration- 300,000-500,000 African Americans move to North during war to fill jobs. • Post war- job Competition/economic turmoil led to race riots • 1919 race riots broke out in over 20 Northern cities. • Chicago- black boy swam onto beach restricted to whites, Whites allegedly stoned boy-he drowned. Violence spread to South • 1921- Tulsa Riot • 1923- Rosewood

5. Nativism Rises as a Result of Post WWI Anxiety • Nativism- desire to protect “Old Stock” Americans from immigrants and those that possess other differences • Causes • Inflation and economic Recession which resulted from Demobilization of WWI. • Racial/ Ethnic tensions grow as white boys began competing for Jobs filled by minorities and immigrants during the war. • Russian Revolution led to fear of Communists (Red Scare) • Economic turmoil leads to worker strikes- strikes seen as “communist” • Immigration -By 1921 Immigration levels had risen to pre-war levels but most came from Eastern and Southern Europe instead of Western Europe Many brought different ideas, cultural norms with them.

6. Inflation leads to Strikes • Labor strikes seen as “communist” • Seattle General Strike (1919) – all workers not just workers from one industry. • The Steel Strike – 350,000 steelworkers, higher pay, shorter hours and union recognition. • Company broke up strike by using anti-immigrant feelings to divide workers. • The Boston Police Strike (1919) – 75% of the Boston police force went on strike. All the men were fired. • Calvin Coolidge MA governor “There is no right to strike against the public safety by anybody, anywhere, anytime.”

7. Strikes Lead to the Red Scare 1919-1920 • Russian Revolution leads to fear of communism (1919- creation of Communist International) • Worker strikes added to fear of possible communist plot. (…anarchism and socialism). • 30 bombs were intercepted by US post office, addressed to prominent business leaders and politicians. • June-1919 eight bombs exploded in 8 cities simultaneously – seeming to confirm fears of a attempted takeover-blamed on communists and other radicals. (one destroyed part of Attorney General Mitchell Palmer’s House)

8. The Palmer Raids • Palmer established the General Intelligence Division (predecessor to FBI) • Palmer organized raids of various radical organizations, particularly Communist • Focused on foreign residents and immigrants • Agency often disregarded the civil liberties of suspects. • Suspects were mistreated held for indefinite periods of time • Detained and deported suspects from the country. • Raids failed to turn up evidence of revolutionary conspiracy.

9. Nativism and the Legal System-The Sacco-Vanzetti Case • 2 men shot and killed two employees of a shoe store in Braintree Ma, Robbing it of $15,000. • Sacco and Vanzetti two Italian immigrants were arrested, charged, and tried for the crime. • Men were anarchists (someone who opposes all forms of government) • Sacco owned a gun similar to the one used in the crime- bullets matched. • No conclusive proof to their committing of the crime. • Both were found guilty and sentenced to death

10. The Re-emergence of the Ku Klux Klan • Original KKK response to emancipation of the slaves • Re-emergence included hatred towards Catholics, Jews, and Immigrants. • Public Relations campaign claiming that the Klan was fighting for “Americanism” solicited 4 million members nationwide • See Political cartoon

11. Nativism and Public Policy • Immigrants Seen as a threat to cultural order • Threat to soldiers of WWI who needed jobs in the post-war weak economy. • Emergency Quota act (1921) – created a quota system limiting immigration. • Only 3% of the total population of an ethnic group that was living in the US as recorded in the 1910 US census could be admitted into the US per year. • Result is that it discriminated heavily against Immigrants from eastern and southern Europe.

12. Political Cartoons – On Immigration

13. "Come unto Me, Ye Opprest!"Literary Digest, 7/5/19.Originally from the Memphis Commercial Appeal.

14. Coming Ashore.Literary Digest, 7/12/19.Originally from the Brooklyn Eagle.

15. Close the Gate.Literary Digest, 7/5/19.Originally from the Chicago Tribune.

16. The Gauntlet Flung Down.Outlook, 5/21/19. Originally from the Brooklyn Eagle.

17. The Patriotic American.Literary Digest, 6/28/19. Originally from the Chicago Tribune.

18. "Say - Do I look Sick?"Literary Digest, 7/5/19.Originally from the Farm Life, Spencer, Ind..

19. Ghosts of WarLiterary Digest, 7/12/19.Originally from the Brooklyn Eagle

20. Immigration Restriction • The National Origins Act (1924)- made immigrant restriction a permanent policy. • Set quotas at 2% of people living in the US of a particular nationality as recorded in the 1890 census. • Result: scaled back where immigrants could come from- favoring Northern Europe • Second part of the act that took effect in 1929 limited immigration to 150,000 people a year. • Exempted people from the Western Hemisphere • Huge influx of Mexicans to fill need of cheap labor in agriculture, mining, railroads

21. The Economics of the 1920’s- Creating a Boom • Republicans controlled the Whitehouse from 1920-1932 • Both Harding and Coolidge believed in laissez-faire • “The business of America is business”

22. The Roaring 20’s beginCauses of Boom • Supply-side economics • New Business Techniques (assembly lines, mass production, advertising, credit) • Rise of New Industries (automobile, radio, motion picture, advertising, other consumer goods) • New attitude

23. Economic Philosophy of the 20’sto promote economic growth • Supply-side economics a.k.a Trickle Down economics • Laizzez faire approach

24. The Roaring 20’s Begin • Between 1923 and 1929 earnings increased 22 % while work hours decreased • What made this Possible? • Expansion of Mass Production and Assembly Line system into most industries. • Effect – more products at a lower cost

25. Ford Motors • Model T 1908- $850 1914- $490 (mass production) 1924- $295 (improved assembly line techniques) Question: What other industry’s began because of the automobile?

26. New Technologies lead to New Industries • Airline • Beginning planes during WWI • 1918- government created first airmail service • 1925 – Kelly Act –postal officials were allowed to contract with private airplane providers to carry mail nationwide • 1926- Air Commerce Act – provided federal aid for building airports • 1927- Charles Lindberg 1st solo flight across the Atlantic – won popular support for commercial flights • 1928- 48 airlines serving 355 American cities.

27. The Radio Industry • 1913 – Edwin Armstrong Invented Radio • 1926 – National Broadcasting Company (NBC) created. • 1927 – NBC has 700 stations nationwide • 1928 – Colombia Broadcasting System (CBS) created a coast to coast network • Both sold advertising time and hired popular musicians, actors and comedians to appear on their shows • 1928 – sold $1 million of advertising time to Republicans and Democrats.

28. The Consumer Society Emerges • New industries led to more employment opportunities and higher wages (8%) • Higher Wages and shorter workdays (more leisure time) resulted in a decade long buying spree • Shift in attitude – people went from being “thrifty” to wanting to consume goods. • Let go of the “Protestant Ethic” • Installment plans – buying things now and paying for them over time • People bought cars, radios, phones, washing machines with the use of credit

29. New Industries lead to the Rise of Mass Advertising • Mass advertising emerged to respond to the “need” to create “needs” for new inventions. • Consequently has become one of the largest industries in US. • Advertisers created appealing, persuasive messages that linked their clients’ products with qualities associated with the modern era. i.e. progress, convenience, leisure, success • Comparing Ads

30. How Stable is this economy? • In 1929 Henry Ford recorded a personal income of $14 Million dollars While the average personal income was $750 • Disposable income did grow during the decade 9% for most while the top 1% gained a 75% increase in the disposable income • Overall increase in production-Worker productivity increased 32% while wages increased only 8% Where does the excess go?