Roaring 20Roaring 20 ss

April 2008April 2008

MacMac

AP OutlineAP OutlineNew Era: The 1920sNew Era: The 1920s Republican Republican

governments governments – Business creed Business creed – Harding scandals Harding scandals – Economic development Economic development

Prosperity and wealth Prosperity and wealth Farm and labor Farm and labor

problems problems New culture New culture

– Consumerism: Consumerism: automobile, radio, automobile, radio, movies movies

– Women, the family Women, the family – Modern religion Modern religion – Literature of alienation Literature of alienation – Jazz age Jazz age – Harlem Renaissance Harlem Renaissance

Conflict of cultures Conflict of cultures – Prohibition, bootlegging Prohibition, bootlegging – Nativism Nativism – Ku Klux Klan Ku Klux Klan – Religious Religious

fundamentalism versus fundamentalism versus modernists modernists

Myth of isolation Myth of isolation – Replacing the League of Replacing the League of

Nations Nations – Business and diplomacy Business and diplomacy

Key TermsKey Terms The Roaring 20’sThe Roaring 20’s Ku Klux KlanKu Klux Klan Emergency Quota Act, 1921Emergency Quota Act, 1921 National Origins Act, 1924National Origins Act, 1924 Harlem Renaissance, Langston Harlem Renaissance, Langston

Hughes, Zora Neale Hurston, Duke Hughes, Zora Neale Hurston, Duke Ellington, Louis ArmstrongEllington, Louis Armstrong

Back to Africa Movement, Marcus Back to Africa Movement, Marcus GarveyGarvey

Religious fundamentalismReligious fundamentalism John T. Scopes, William Jennings John T. Scopes, William Jennings

Bryan, Clarence DarrowBryan, Clarence Darrow Car Culture, Henry Ford, Model TCar Culture, Henry Ford, Model T Advertising comes of age, Radio, Advertising comes of age, Radio,

moviesmovies Babe RuthBabe Ruth Charles LindberghCharles Lindbergh The Jazz SingerThe Jazz Singer, 1927, Al Jolson, 1927, Al Jolson Changes for Women, FlappersChanges for Women, Flappers Margaret SangerMargaret Sanger Unions in the 1920’s, “American Plan”Unions in the 1920’s, “American Plan” Dawes Plan, 1924Dawes Plan, 1924 Democratic Party turmoilDemocratic Party turmoil Republican Presidents, idealsRepublican Presidents, ideals Warren G. Harding, Return to Warren G. Harding, Return to

Normalcy, scandals, Teapot DomeNormalcy, scandals, Teapot Dome

Calvin CoolidgeCalvin Coolidge Herbert HooverHerbert Hoover Albert B. FallAlbert B. Fall Harry M. DaughertyHarry M. Daugherty Alfred E. SmithAlfred E. Smith "American Plan""American Plan" Norman ThomasNorman Thomas Fordney-McCumber Tariff, 1922Fordney-McCumber Tariff, 1922 “ “Lost Generation”, F. Scott Fitzgerald, John Dos Lost Generation”, F. Scott Fitzgerald, John Dos

Passos, Ezra Pound, Gertrude Stein, Ernest Passos, Ezra Pound, Gertrude Stein, Ernest Hemingway, Sinclair Lewis, William FaulknerHemingway, Sinclair Lewis, William Faulkner

Sacco and Vanzetti CaseSacco and Vanzetti Case House Un-American Activities CommitteeHouse Un-American Activities Committee Ku Klux Klan, NativismKu Klux Klan, Nativism Emergency Quota Act 1921Emergency Quota Act 1921 Immigration Quota Act 1924Immigration Quota Act 1924 "Birth of a Nation“"Birth of a Nation“

Prohibition/Volstead ActProhibition/Volstead Act Al CaponeAl Capone Organized CrimeOrganized Crime Election of 1928, Election of 1928, Hoover Foreign Policy-Japan attacks ChinaHoover Foreign Policy-Japan attacks China The Great DepressionThe Great Depression Causes of the DepressionCauses of the Depression “ “Hooverville”Hooverville” Stock Market Crash, “Black Tuesday”Stock Market Crash, “Black Tuesday” Republican Response to Great Depression, “Trickle Republican Response to Great Depression, “Trickle

Down,” “Pump Priming”Down,” “Pump Priming” Economic Cycle, Chain Reaction, Unemployment Economic Cycle, Chain Reaction, Unemployment Andrew MellonAndrew Mellon Banking CrisisBanking Crisis Smoot-Hawley Tariff, 1930Smoot-Hawley Tariff, 1930 Reconstruction Finance CorporationReconstruction Finance Corporation Public Works Public Works "Bonus Army," 1932 "Bonus Army," 1932 Election of 1932- “FDR”Election of 1932- “FDR”

Republican Decade Republican Decade Business creed Business creed

Harding scandals Harding scandals

Economic developmentEconomic development Republican Republican

AdministrationsAdministrations Pro-businessPro-business Anti-LaborAnti-Labor Economy is weak Economy is weak

at first but later at first but later boomsbooms

Warren G. Harding Warren G. Harding 19201920

Calvin Coolidge Calvin Coolidge 19241924

Herbert Hoover Herbert Hoover 19281928

Dems= Cox and FDR-

Eugene Debbs- Socialist wins 1million votes

RepublicRepublican Poweran Power

President President HardingHarding

Elected 1920, Elected 1920, LandslideLandslide

Legacy of Legacy of Scandals Scandals

““Teapot Dome”Teapot Dome” Died 1923, in Died 1923, in

officeoffice

“Return to Normalcy”

Harding ValuesHarding Values

Pro-businessPro-business End Foreign End Foreign

Activism Activism – (Against Wilsonian (Against Wilsonian

view)view) End Progressive End Progressive

changechange

Corrupt Corrupt AdministrationAdministration

““The Ohio Gang”The Ohio Gang” ““Teapot Dome”Teapot Dome” Officials indicted Officials indicted Oil Leases sold Oil Leases sold

illegally (bribes and illegally (bribes and kickbacks)kickbacks)

1924 prison time 1924 prison time given to officialsgiven to officials

PPresident Coolidgeresident Coolidge “The business of America is “The business of America is

business.”business.”1922-Fordney-1922-Fordney-

McCumber McCumber TariffTariff

No help for No help for farmersfarmers

CoolidgeCoolidge

Low TaxesLow Taxes Reduce SpendingReduce Spending Promised to return Promised to return

the the White House to White House to the Gilded Age the Gilded Age philosophiesphilosophies

Supported big Supported big business business “the man “the man who builds a factory who builds a factory builds a temple”builds a temple”

Anti UnionAnti Union ““There is no right to There is no right to

strike against the strike against the public safety by public safety by anybody, anytime, anybody, anytime, anywhere.” re. Boston anywhere.” re. Boston Police Strike 1919.Police Strike 1919.

Foreign PolicyForeign Policy

In general – In general – isolationisolation Not part of League of NationsNot part of League of Nations But when American business was But when American business was

present some internationalismpresent some internationalism Pulled back from Latin AmericaPulled back from Latin America Examples- Examples-

– Pan American TreatyPan American Treaty– Kellogg Briand PactKellogg Briand Pact– Washington Arms ConferenceWashington Arms Conference

Foreign PolicyForeign Policy

Washington Arms Washington Arms Limitations Limitations ConferenceConference

9 treaties9 treaties Brits, France, Brits, France,

Japan, USJapan, US Fixed # of Fixed # of

warships- Japan warships- Japan gets fewer –racist gets fewer –racist view- Japan will view- Japan will resent.resent.

Kellogg-Briand Pact Kellogg-Briand Pact – Outlawed WarOutlawed War– 62 nations agree62 nations agree– Not enforceableNot enforceable

Reaction against Reaction against WWI experienceWWI experience

Pan American Pan American Treaty-Treaty- – US pledges peaceful US pledges peaceful

resolution of resolution of disputesdisputes

1924 Dawes Plan= German 1924 Dawes Plan= German War DebtsWar Debts

Germans couldn’t pay the Germans couldn’t pay the reparations paymentsreparations payments

US steps in-to negotiate and US steps in-to negotiate and reorganize German reparations reorganize German reparations

Allies owed $10 Billion to the US.Allies owed $10 Billion to the US.

Consumer Consumer EconomyEconomy

Consumer Consumer EconomyEconomy

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 autoIndustries Related to auto– SteelSteel– Paint/Chemical—Dow/DuPointPaint/Chemical—Dow/DuPoint– RubberRubber– TextilesTextiles– ConstructionConstruction– ElectronicsElectronics– GlassGlass– OilOil– RoadsRoads– New Businesses related to carsNew Businesses related to carsgas gas

stationsstations– Car cultureCar culture– SuburbsSuburbs– MotelsMotels– DinersDiners– Fast FoodFast Food– Sex in carsSex in cars

ElectronicsElectronics– Irons, Fans, Toasters, Vacuums, StoveIrons, Fans, Toasters, Vacuums, Stove– Washing machine, SewingWashing machine, Sewing– Fridge, General ElectricFridge, General Electric– 70% of country is “electrified”70% of country is “electrified”– EDISON = father of electricity EDISON = father of electricity

Edison Electric Edison Electric invented electric invented electric chairchair

DEBTDEBT installment plans installment plans

Culture of the Roaring 20’sCulture of the Roaring 20’sRadio

KDKA PittsburghGE, Westinghouse,&

RCA form NBC

Silent MoviesCharlie Chaplin

“Talkies”The Jazz SingerStarring Al Jolson

Mary Pickford“America’s Sweetheart”

CelebritiesCelebritiesBabe Ruth &Ty Cobb

Jack Dempsey

Charles Lindbergh The Spirit of St. Louis

The 20’s The 20’s isis The Jazz The Jazz AgeAge

The Flappersmake upcigarettes

short skirts

MusiciansLouis ArmstrongDuke Ellington

WritersF. Scott FitzgeraldErnest Hemingway

Hoover ProfileHoover Profile

Typical RepublicanTypical Republican US economy was US economy was

booming booming ““A chicken in every A chicken in every

pot and a car in pot and a car in every garage.”every garage.”

The “Great The “Great Engineer”Engineer”

OrphanOrphan

Degree in Geology Degree in Geology from Stanfordfrom Stanford

Rich Mining Rich Mining engineerengineer

BusinessmanBusinessman Retired at age 40 Retired at age 40

and devoted life to and devoted life to public servicepublic service

During War Food During War Food AdministrationAdministration

The Great DepressionThe Great Depression

Hoover Elected Hoover Elected 19281928

Calvin Coolidge Calvin Coolidge decided not to run.decided not to run.

Hoover won 58% Hoover won 58% landslide 444 landslide 444 electoral voteselectoral votes

Dems nominate Dems nominate Alfred E. Smith of Alfred E. Smith of NYC, Irish Catholic, NYC, Irish Catholic, Anti-Prohibition Anti-Prohibition (Wet)(Wet)

Nativist, KKK and Nativist, KKK and middle Americamiddle America

President March President March 19291929

Hoover Economic Hoover Economic PhilosophyPhilosophy

Believed social problems could be Believed social problems could be solved by solved by – Volunteerism- voluntary changes and Volunteerism- voluntary changes and

helpinghelping– Government encouragementGovernment encouragement– Hard WorkHard Work

Before The Great Before The Great DepressionDepression

In 1929- the US was In 1929- the US was richest nation in the richest nation in the worldworld

Salaries and wages Salaries and wages above 1800sabove 1800s

Large urban middle Large urban middle classclass

Increase in Home Increase in Home ownership ownership

New appliancesNew appliances AutomobilesAutomobiles

Huge optimism in this Huge optimism in this periodperiod

““No Congress of the No Congress of the United States ever United States ever assembled has met assembled has met with a more pleasing with a more pleasing prospect than that prospect than that which appears at the which appears at the present time.”present time.”

Andrew MellonAndrew Mellon

Secretary of the Secretary of the TreasuryTreasury

Spokesman for Spokesman for business Community business Community and richand rich

““High tide of prosperity High tide of prosperity will continue.”will continue.”

Optimism in Stock MarketOptimism in Stock Market Prices rose after 1921Prices rose after 1921 Stocks doubled in Stocks doubled in

value by 1927value by 1927 Some drops but Some drops but

always recoveryalways recovery Americans put savings Americans put savings

in stock marketin stock market

Only 3% of Americans Only 3% of Americans Owned stockOwned stock

1928- Summer prices 1928- Summer prices rose/increasedrose/increased

Huge amount of Huge amount of speculation or Gamblingspeculation or Gambling

People thought prices People thought prices would risewould rise

Example- Example- G. E. $128 March 1928G. E. $128 March 1928 $400- September 1929$400- September 1929

Buying stocks on MarginBuying stocks on Margin 50-30 or even 10% 50-30 or even 10%

downdown Chain of borrowingChain of borrowing

Buying on MarginBuying on Margin

Buying stocks on Buying stocks on MarginMargin

50-30 or even 10% 50-30 or even 10% downdown

Chain of borrowingChain of borrowing Consumer buys Consumer buys

stock 10% downstock 10% down Borrows difference Borrows difference

from brokerfrom broker

Broker borrows Broker borrows from bank and from bank and corporationscorporations

Works fine until the Works fine until the Broker makes a Broker makes a “Margin Call”“Margin Call”

If stock prices drop If stock prices drop Loans are due by Loans are due by

the end of the day.the end of the day.

Stock Market CrashStock Market Crash

$30. could buy $100 worth of stock$30. could buy $100 worth of stock Sold later for $150 = profitSold later for $150 = profit October 23 stocks dropOctober 23 stocks drop Triggered “Margin calls”- which Triggered “Margin calls”- which

causes sellingcauses selling

Sales= demand drops--Sales= demand drops-- prices drop prices drop Nationwide Nationwide stampede to sell unload stampede to sell unload

stockstock

Great Great Depression Depression SufferingSuffering

Okies and Okies and “Hooverville”“Hooverville”

Weakness of Banking Weakness of Banking SystemSystem

Barrowers could repay loans Barrowers could repay loans – Caused bank failuresCaused bank failures

Savings lost by consumersSavings lost by consumers Reduced credit supplyReduced credit supply

Banks close and people lose their Banks close and people lose their supplysupply

Savings and value wiped Savings and value wiped outout

100,000s of people lose savings100,000s of people lose savings

Economy was in “Free Fall”Economy was in “Free Fall” People thought the economy was just People thought the economy was just

in a in a temporary recessiontemporary recession or “Panic” or “Panic”

Problem lasted 10 yearsProblem lasted 10 years

Economic Decline DeepensEconomic Decline Deepens

1929-33 – there 1929-33 – there was 33% drop in was 33% drop in outputoutput

Prices fell 20-35%Prices fell 20-35% Unemployment rate Unemployment rate

25%- 193325%- 1933 9.9% 19419.9% 1941

– 1931-1940 8-1931-1940 8-13million 13million unemployedunemployed

More than ½ of all More than ½ of all households felt households felt economic economic consequencesconsequences

Wages cutWages cut Hours cutHours cut Reduced spendingReduced spending Lost savingsLost savings

People SufferPeople Suffer

Eating lessEating less Not using ElectricityNot using Electricity No spending on No spending on

non-essentialsnon-essentials Ending visits to Ending visits to

doctorsdoctors Limited heatingLimited heating People move in with People move in with

relativesrelatives

People take to the People take to the road to search for road to search for workwork

““Hobos” on the Hobos” on the road/rails road/rails

““HoovervillesHoovervilles” = ” = shanty Towns shanty Towns where homeless where homeless create shelterscreate shelters

Industries Hurt by Poor Industries Hurt by Poor EconomyEconomy

ManufacturingManufacturing ConstructionConstruction MiningMining SteelSteel Automobiles- 1931 GM laid off Automobiles- 1931 GM laid off

100,000 of 260,000100,000 of 260,000

Hoover’s Reaction Hoover’s Reaction Hoover thought the economy Hoover thought the economy

would rebound in a year or would rebound in a year or twotwo

Hoover ActionsHoover Actions Called Called bankersbankers and and

industrialists industrialists to the White to the White HouseHouse

Asked Asked them not to cut them not to cut wages + keep interest wages + keep interest rates down (rates down (Volunteerism)Volunteerism)

AskedAsked industries to build industries to build (Volunteerism)(Volunteerism)

Gov cut expenditures to Gov cut expenditures to balance budgetbalance budget– Raised taxes- problem took $ Raised taxes- problem took $

out of the economyout of the economy

Hoover Hoover NO Deficit FinancingNO Deficit Financing

Falling productionFalling production Rising unemploymentRising unemployment

Refused to provide FED relief Refused to provide FED relief for the unemployedfor the unemployed– The “Dole” corruptsThe “Dole” corrupts– Took no steps to relieve the Took no steps to relieve the

suffering of joblesssuffering of jobless

Hoover’s ResponseHoover’s Response Opposed Democrat Opposed Democrat

Senate LawSenate Law– For Unemployment For Unemployment

InsuranceInsurance Typical Republican Typical Republican

ViewsViews Did make some Gov Did make some Gov

Spending to help Spending to help stimulate the economystimulate the economy

Public Works ProjectsPublic Works Projects Asked states to create Asked states to create

these programsthese programs

1929- Agricultural 1929- Agricultural Marketing Act-Marketing Act-

Attempted to address Attempted to address Agriculture problemsAgriculture problems

To maintain prices To maintain prices (tariff was part of this)(tariff was part of this)

Hoover’s Hoover’s International Economic PolicyInternational Economic Policy

Protectionist measures= tariffs Protectionist measures= tariffs reduces tradereduces trade

Smoot-Hawley Tariff high tariffSmoot-Hawley Tariff high tariff Didn’t help the economyDidn’t help the economy

Hoover and “Bank Relief”Hoover and “Bank Relief”

Reconstruction Finance Corporation Reconstruction Finance Corporation (RFC)(RFC)– Idea to help banksIdea to help banks– Gov provides loans for banks, Rail Gov provides loans for banks, Rail

Roads, and corporationsRoads, and corporations– Strengthen creditStrengthen credit– Reduce foreclosures Reduce foreclosures – Facilitate lendingFacilitate lending– Too little $ devoted to thisToo little $ devoted to this

Popular Responses to Popular Responses to HooverHoover

Farmers created: Farming Holiday Farmers created: Farming Holiday AssociationAssociation (protest act) \ (protest act) \– Farmers wanted to withhold produce from Farmers wanted to withhold produce from

market to raise prices.market to raise prices. The Bonus March-July 1932The Bonus March-July 1932

– WWI Veterans wanted to be paid a bonus they WWI Veterans wanted to be paid a bonus they were promised- were promised-

– payment was not due until 1945payment was not due until 1945– They march and camp in Washington They march and camp in Washington – Hoover calls out the Army to disburse them, Hoover calls out the Army to disburse them,

(MacArthur does it violently, tanks, cavalry..) (MacArthur does it violently, tanks, cavalry..) – Causes huge public criticism Causes huge public criticism

Election of 1932Election of 1932

Hoover very un popularHoover very un popular Depression is getting worse.Depression is getting worse. ““Hoovervilles” “Hoover Flags”Hoovervilles” “Hoover Flags” ““troubled times are ’Hoovering’ over troubled times are ’Hoovering’ over

us”us” Republicans lose seats in CongressRepublicans lose seats in Congress Hoover is increasingly blamed for the Hoover is increasingly blamed for the

depressiondepression He seemed insensitive to the Misery He seemed insensitive to the Misery

of the people.of the people.

The Dust BowlThe Dust Bowl

On the farmOn the farm Prices for products Prices for products

downdown Had food and shelter Had food and shelter

but no disposable but no disposable incomeincome

Began to default on Began to default on loans and loose farmsloans and loose farms– OkalahomaOkalahoma– TexasTexas– KansaKansa– ColoradoColorado

Bad weatherBad weather Low rainLow rain DroughtDrought Dried up Farm land + Dried up Farm land +

wind=Dustbowlwind=Dustbowl Dust blew into the Dust blew into the

atmosphereatmosphere

Dust Bowl CultureDust Bowl Culture

Woody Guthrie Woody Guthrie Folk SingerFolk Singer Sang about the Sang about the

“Okies”- Dust Bowl “Okies”- Dust Bowl victimsvictims

Who went on the Who went on the road to find new road to find new liveslives

Many go to Many go to CaliforniaCalifornia

John SteinbeckJohn Steinbeck Grapes of WrathGrapes of Wrath Famous book of Famous book of

the “Okie” Dust the “Okie” Dust Bowl Joad FamilyBowl Joad Family

FDR WinsFDR Wins