Roaring 20 s

1. Roaring 20 s April 2008 Mac

2. New Era: The 1920s Republican governments Business creed Harding scandals Economic development Prosperity and wealth Farm and labor problems New culture Consumerism: automobile, radio, movies Women, the family Modern religion Literature of alienation Jazz age Harlem Renaissance Conflict of cultures Prohibition, bootlegging Nativism Ku Klux Klan Religious fundamentalism versus modernists Myth of isolation Replacing the League of Nations Business and diplomacy AP Outline

3. The Roaring 20’s Ku Klux Klan Emergency Quota Act, 1921 National Origins Act, 1924 Harlem Renaissance, Langston Hughes, Zora Neale Hurston, Duke Ellington, Louis Armstrong Back to Africa Movement, Marcus Garvey Religious fundamentalism John T. Scopes, William Jennings Bryan, Clarence Darrow Car Culture, Henry Ford, Model T Advertising comes of age, Radio, movies Babe Ruth Charles Lindbergh The Jazz Singer, 1927, Al Jolson Changes for Women, Flappers Margaret Sanger Unions in the 1920’s, “American Plan” Dawes Plan, 1924 Democratic Party turmoil Republican Presidents, ideals Warren G. Harding, Return to Normalcy, scandals, Teapot Dome Calvin Coolidge Herbert Hoover Albert B. Fall Harry M. Daugherty Alfred E. Smith "American Plan" Norman Thomas Fordney-McCumber Tariff, 1922 “Lost Generation”, F. Scott Fitzgerald, John Dos Passos, Ezra Pound, Gertrude Stein, Ernest Hemingway, Sinclair Lewis, William Faulkner Sacco and Vanzetti Case House Un-American Activities Committee Ku Klux Klan, Nativism Emergency Quota Act 1921 Immigration Quota Act 1924 "Birth of a Nation“Prohibition/Volstead Act Al Capone Organized Crime Election of 1928, Hoover Foreign Policy-Japan attacks China The Great Depression Causes of the Depression “Hooverville” Stock Market Crash, “Black Tuesday” Republican Response to Great Depression, “Trickle Down,” “Pump Priming” Economic Cycle, Chain Reaction, Unemployment Andrew Mellon Banking Crisis Smoot-Hawley Tariff, 1930 Reconstruction Finance Corporation Public Works "Bonus Army," 1932 Election of 1932- “FDR” Key Terms

4. Republican Administrations Pro-business Anti-Labor Economy is weak at first but later booms Warren G. Harding 1920 Calvin Coolidge 1924 Herbert Hoover 1928 Republican Decade Business creed Harding scandals Economic development

5. Dems= Cox and FDR- Eugene Debbs- Socialist wins 1million votes

6. “Return to Normalcy” Republican Power • President Harding • Elected 1920, Landslide • Legacy of Scandals • “Teapot Dome” • Died 1923, in office

7. Pro-business End Foreign Activism (Against Wilsonian view) End Progressive change Corrupt Administration “The Ohio Gang” “Teapot Dome” Officials indicted Oil Leases sold illegally (bribes and kickbacks) 1924 prison time given to officials Harding Values

9. President Coolidge“The business of America is business.” • 1922-Fordney-McCumber Tariff • No help for farmers

10. Low Taxes Reduce Spending Promised to return the White House to the Gilded Age philosophies Supported big business “the man who builds a factory builds a temple” Anti Union “There is no right to strike against the public safety by anybody, anytime, anywhere.” re. Boston Police Strike 1919. Coolidge

11. Foreign Policy • In general – isolation • Not part of League of Nations • But when American business was present some internationalism • Pulled back from Latin America • Examples- • Pan American Treaty • Kellogg Briand Pact • Washington Arms Conference

12. Washington Arms Limitations Conference 9 treaties Brits, France, Japan, US Fixed # of warships- Japan gets fewer –racist view- Japan will resent. Kellogg-Briand Pact Outlawed War 62 nations agree Not enforceable Reaction against WWI experience Pan American Treaty- US pledges peaceful resolution of disputes Foreign Policy

13. 1924 Dawes Plan= German War Debts • Germans couldn’t pay the reparations payments • US steps in-to negotiate and reorganize German reparations • Allies owed $10 Billion to the US.

14. Consumer Economy

15. 1920’s Booming economy Slight depression after the war War economy=HIGH After war- Soldiers come back wanting jobs Women out of jobs Auto industry Ford---Assembly line, Detroit, Model T GM--- credit for buying a car new 1921- 9 million cars registered 1929- 16 million Federal roads built Radio- mass media Aeronautics Navy Big in the west Lindbergh first non stop flight across the Atlantic Industries Related to auto Steel Paint/Chemical—Dow/DuPoint Rubber Textiles Construction Electronics Glass Oil Roads New Businesses related to carsgas stations Car culture Suburbs Motels Diners Fast Food Sex in cars Electronics Irons, Fans, Toasters, Vacuums, Stove Washing machine, Sewing Fridge, General Electric 70% of country is “electrified” EDISON = father of electricity  Edison Electric  invented electric chair DEBT installment plans Consumer Economy

16. Culture of the Roaring 20’s Radio KDKA Pittsburgh GE, Westinghouse,& RCA form NBC Silent Movies Charlie Chaplin “Talkies” The Jazz Singer Starring Al Jolson Mary Pickford “America’s Sweetheart”

17. Celebrities Babe Ruth &Ty Cobb Charles Lindbergh The Spirit of St. Louis Jack Dempsey

18. The 20’s isThe Jazz Age The Flappers make up cigarettes short skirts Writers F. Scott Fitzgerald Ernest Hemingway Musicians Louis Armstrong Duke Ellington

19. Typical Republican US economy was booming “A chicken in every pot and a car in every garage.” The “Great Engineer” Orphan Degree in Geology from Stanford Rich Mining engineer Businessman Retired at age 40 and devoted life to public service During War Food Administration Hoover Profile

20. Hoover Elected 1928 Calvin Coolidge decided not to run. Hoover won 58% landslide 444 electoral votes Dems nominate Alfred E. Smith of NYC, Irish Catholic, Anti-Prohibition (Wet) Nativist, KKK and middle America President March 1929 The Great Depression

21. Hoover Economic Philosophy • Believed social problems could be solved by • Volunteerism- voluntary changes and helping • Government encouragement • Hard Work

22. In 1929- the US was richest nation in the world Salaries and wages above 1800s Large urban middle class Increase in Home ownership New appliances Automobiles Huge optimism in this period “No Congress of the United States ever assembled has met with a more pleasing prospect than that which appears at the present time.” Before The Great Depression

23. Andrew Mellon • Secretary of the Treasury • Spokesman for business Community and rich • “High tide of prosperity will continue.”

24. Prices rose after 1921 Stocks doubled in value by 1927 Some drops but always recovery Americans put savings in stock market Only 3% of Americans Owned stock 1928- Summer prices rose/increased Huge amount of speculation or Gambling People thought prices would rise Example- G. E. $128 March 1928 $400- September 1929 Buying stocks on Margin 50-30 or even 10% down Chain of borrowing Optimism in Stock Market

25. Buying stocks on Margin 50-30 or even 10% down Chain of borrowing Consumer buys stock 10% down Borrows difference from broker Broker borrows from bank and corporations Works fine until the Broker makes a “Margin Call” If stock prices drop Loans are due by the end of the day. Buying on Margin

26. Stock Market Crash • $30. could buy $100 worth of stock • Sold later for $150 = profit • October 23 stocks drop • Triggered “Margin calls”- which causes selling • Sales= demand drops-- prices drop • Nationwide stampede to sell unload stock

27. Great Depression Suffering

28. Okies and “Hooverville”

31. Weakness of Banking System • Barrowers could repay loans • Caused bank failures • Savings lost by consumers • Reduced credit supply • Banks close and people lose their supply

32. Savings and value wiped out • 100,000s of people lose savings • Economy was in “Free Fall” • People thought the economy was just in a temporary recession or “Panic” • Problem lasted 10 years

34. 1929-33 – there was 33% drop in output Prices fell 20-35% Unemployment rate 25%- 1933 9.9% 1941 1931-1940 8-13million unemployed More than ½ of all households felt economic consequences Wages cut Hours cut Reduced spending Lost savings Economic Decline Deepens

35. Eating less Not using Electricity No spending on non-essentials Ending visits to doctors Limited heating People move in with relatives People take to the road to search for work “Hobos” on the road/rails “Hoovervilles” = shanty Towns where homeless create shelters People Suffer

37. Industries Hurt by Poor Economy • Manufacturing • Construction • Mining • Steel • Automobiles- 1931 GM laid off 100,000 of 260,000

39. Hoover thought the economy would rebound in a year or two Hoover Actions Called bankers and industrialists to the White House Asked them not to cut wages + keep interest rates down (Volunteerism) Asked industries to build (Volunteerism) Gov cut expenditures to balance budget Raised taxes- problem took $ out of the economy Hoover NO Deficit Financing Falling production Rising unemployment Refused to provide FED relief for the unemployed The “Dole” corrupts Took no steps to relieve the suffering of jobless Hoover’s Reaction

41. Opposed Democrat Senate Law For Unemployment Insurance Typical Republican Views Did make some Gov Spending to help stimulate the economy Public Works Projects Asked states to create these programs 1929- Agricultural Marketing Act- Attempted to address Agriculture problems To maintain prices (tariff was part of this) Hoover’s Response

42. Hoover’s International Economic Policy • Protectionist measures= tariffs  reduces trade • Smoot-Hawley Tariff high tariff • Didn’t help the economy

43. Hoover and “Bank Relief” • Reconstruction Finance Corporation (RFC) • Idea to help banks • Gov provides loans for banks, Rail Roads, and corporations • Strengthen credit • Reduce foreclosures • Facilitate lending • Too little $ devoted to this

45. Popular Responses to Hoover • Farmers created: Farming Holiday Association (protest act) \ • Farmers wanted to withhold produce from market to raise prices. • The Bonus March-July 1932 • WWI Veterans wanted to be paid a bonus they were promised- • payment was not due until 1945 • They march and camp in Washington • Hoover calls out the Army to disburse them, (MacArthur does it violently, tanks, cavalry..) • Causes huge public criticism

49. Election of 1932 • Hoover very un popular • Depression is getting worse. • “Hoovervilles” “Hoover Flags” • “troubled times are ’Hoovering’ over us” • Republicans lose seats in Congress • Hoover is increasingly blamed for the depression • He seemed insensitive to the Misery of the people.