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THE 1920’S: AN UNSETTLED DECADE (1919-1929)

Chapter 12. THE 1920’S: AN UNSETTLED DECADE (1919-1929). Section 1: Returning to “Normalcy” Section 2: Republicans in Power Section 3: “The Business of America is Business” Section 4: The U.S. Economy. Section 1: Returning to “Normalcy”. OBJECTIVES.

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THE 1920’S: AN UNSETTLED DECADE (1919-1929)

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  1. Chapter 12 THE 1920’S: AN UNSETTLED DECADE(1919-1929) Section 1: Returning to “Normalcy” Section 2: Republicans in Power Section 3: “The Business of America is Business” Section 4: The U.S. Economy

  2. Section 1:Returning to “Normalcy” OBJECTIVES • What difficulties did the United States face when making the transition from war to peacetime? • What were some of the causes of the strikes and riots of 1919? • How did the Red Scare affect American society?

  3. Section 1:Returning to “Normalcy” Difficulties in the Transition to Peace • U.S. struggled through a period of demobilization – the process of returning to a peacetime economy. • Veterans returned home to find their jobs had been filled by others. • To make room for the men, women were forced to give up their jobs. • Business began laying off employees. • Prices and unemployment continued to rise but wages fell or stayed about the same.

  4. Section 1:Returning to “Normalcy” Causes of Strikes and Riots of 1919 • Workers went on strike for better pay. • In February 1919 union workers in the shipbuilding industry went on strike in Seattle, Washington. • Demanding more pay and shorter working hours, steel workers in Pittsburgh, Pennsylvania walked off the job on September 22, 1919. • September 1919, police in Boston went on strike and the state militia was called in to restore order.

  5. Section 1:Returning to “Normalcy” The Red Scare and American Society • Strikes and riots of 1919 led to fears that a communist revolution might occur in the U.S. • U.S. leaders feared that groups that challenged the government threatened the American way of life. • Many Americans stereotyped a majority of European immigrants as being dangerous.

  6. Section 1:Returning to “Normalcy” (continued) The Red Scare and American Society • Public concern grew after several bombings were aimed at business and government leaders such as U.S. Attorney General A. Mitchell Palmer. • The Red Scare added to the climate of xenophobia – the fear and hatred of foreigners.

  7. Section 2:Republicans in Power OBJECTIVES • How did the Harding and Coolidge administration address economic issues? • What foreign policy did the United States follow during the 1920’s? • Why did Republicans win the presidential elections of the 1920’s?

  8. Section 2:Republicans in Power Harding and Coolidge and the Economy • Both were pro-business. • They supported aid to farmers. • Congress passed many tax cuts under Coolidge. • Harding kept government spending to a minimum and favored low taxes, low interest rates on loans, high tariffs, and little economic regulation.

  9. Section 2:Republicans in Power U.S. Foreign Policy in the 1920’s • The U.S. promoted peace and economic growth abroad. • Diplomats hoped that new treaties would prevent another world war and make the global economy stronger. • The U.S. supported disarmament – the practice of limiting military weapons.

  10. Section 2:Republicans in Power (continued) U.S. Foreign Policy in the 1920’s • At the Washington Conference (1921), the U.S. and other countries signed the Five-Power Naval Treaty, which limited the maximum size of each country’s Navy. • In August 1928, the U.S. and 14 other countries signed the Kellogg-Briand Pact, which tried to outlaw war.

  11. Section 2:Republicans in Power Republicans Win the Election of 1928 • Candidates reflected the growing political differences between rural and urban America. • Protestants opposed Democratic candidate Alfred E. Smith because he was Catholic. • Republican candidate Herbert Hoover seemed to represent traditional values and was linked to the country’s economic success.

  12. Section 3: “The Businessof America is Business” OBJECTIVES • How did the assembly line affect manufacturing? • What effect did the automobile have on the economy and people’s everyday lives? • How did advertising and installment plans change people’s buying habits?

  13. Section 3: “The Businessof America is Business” The Assembly Line and Manufacturing • The assembly line was a faster method of building cars used in Henry Ford’s automobile factory. • It moved quickly because each person did one simple task repeatedly. • The assembly line benefited business owners by saving time and lowering manufacturing costs. • The stress of assembly line jobs caused workers to quit on a regular basis leading to retraining expenses for manufacturers.

  14. Section 3: “The Businessof America is Business” Effects of the Automobile on the Economy and People’s Lives • The automobile supplied the public with inexpensive transportation. • Millions of workers held jobs that supported automobile manufacturing. • Automobiles changed the landscape of America with the building of new communities.

  15. Section 3: “The Businessof America is Business” (continued) Effects of the Automobile on the Economy and People’s Lives • Federal and state governments funded bridge, highway and tunnel construction projects. • Families began taking driving vacations and roadside businesses developed.

  16. Section 3: “The Businessof America is Business” Advertising and Installment Buying and the Consumer • The birth of new products led to a boom in advertising and installment buying. • Advertisers helped create nationally known brand names and encouraged people to buy products. • Advertisements promised Americans more leisure time.

  17. Section 3: “The Businessof America is Business” (continued) Advertising and Installment Buying and the Consumer • Installment plans allowed people to buy goods that had once been out of their reach. installment plans – program that allowed customers to buy goods making a small down payment followed by additional monthly payments with interest

  18. Section 4:The U.S. Economy OBJECTIVES • What caused the stock market boom in the 1920’s? • What were the characteristics of “sick industries” in the 1920’s? • What difficulties did organized labor and the agricultural industry experience during the 1920’s?

  19. Section 4:The U.S. Economy Causes of the Stock Market Boom in the 1920’s • Government’s pro-business policies and the 1920s production led to increased profits for many companies. • From 1923-1928 stock sales on the New York Stock Exchange increased by nearly 400 percent as Americans dreamed of great wealth.

  20. Section 4:The U.S. Economy (continued) Causes of the Stock Market Boom in the 1920’s • People borrowed money to buy stock. • Business owners, such as J.C. Penney who owned a chain of department stores, offered stock options to managers.

  21. Section 4:The U.S. Economy Characteristics of “Sick Industries” • "Sick industries" did not share in the nation’s prosperity and struggled. • They were slow or unable to adapt to changing technology and consumer demand. • Struggling industries included coal, lumber and textiles whose products were being replaced with more modern materials.

  22. Section 4:The U.S. Economy Difficulties of Organized Labor and Agriculture During the 1920’s • Unions lost government support in peacetime. • Businesses stopped hiring union workers. • Violent strikes of 1919 had led to strong antiunion feelings. • Union membership dropped and many industries became “closed shops” where only union members could work.

  23. Section 4:The U.S. Economy (continued) Difficulties of Organized Labor and Agriculture During the 1920’s • With the end of war, farmer’s supply was higher than demand. • Food prices dropped and farmers could not pay their debts and lost their land. • Republican leaders did not want to interfere with the free-enterprise system by regulating farm prices.

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