The 1920s Economy & Politics The Economy, Society, and Politics of the 1920s

VIDEO QUESTION: Stock Market oDFF9Dgs (4:05-9:00) oDFF9Dgs Describe urbanization in the United States and the growth of the cities in the 1920s Describe the growth of the stock market in the 1920s and its impact on the economy/growth of wealth:

VIDEO QUESTION: Technology, Credit, and Radio Ei-U6pmo (beginning to 4:45) Ei-U6pmo Describe the impact of technology and infrastructure on the development of life in the 1920s Describe the use of credit in the 1920s Describe the impact and use of the radio on the 1920s

VIDEO QUESTION: Automobile and movies Mwv5vqAc (8:40-9:40) Mwv5vqAc Describe the growth and impact of the automobile:

A. Expansion –Upside of the business cycle –Supply and demand are both high –Unemployment is decreasing B. Peak –Highest point in the business cycle –Supply and demand are both at their highest point –Unemployment is at its lowest point

C. Contraction –Downside of the business cycle –Supply is high but demand is low –Unemployment is increasing D. Trough –Lowest point in the business cycle –Supply and demand are both at their lowest point –Unemployment is at its highest point

The Growing & Prosperous Economy 7% growth rate with a 22% increase in average income Work hours and days of the work week decreased with paid vacations beginning President Coolidge said, “The business of America is business.”

Causes for Growth A. World War I –Caused economy to grow rapidly to supply the war –War industries and equipment adapted for civilian industries and use after temporary decline

B. Consumer Income –People earned more money causing the growth of the middle class –This growing middle class was able to buy more goods which helped the economy –Many items were bought on credit (down payment + monthly payments) –1928: 70% of major appliances bought on credit

C. Increased Technology –New technology helped increase productivity –­Henry Ford’s assembly line divided operations into simple tasks –Automobiles and airplanes increase ability to travel and ship goods –Radio broadcasting provides opportunities for advertising

D. Productivity –Workers produced more goods by using more efficient technology which lowered prices –Cheaper prices meant more people could buy goods

Describe why the American economy grew significantly in the 1920s (slow right after WWI – see NB#12)

VIDEO QUESTION: POLITICS AFTER WORLD WAR I Describe the issues influencing the country directly after World War I and during the Election of 1920: Describe the presidency of Warren G. Harding Describe the presidency of Calvin Coolidge

Harding Administration Republican and U.S. Senator from Ohio, elected in 1920 with a campaign to “return to normalcy” –Defeats Ohio Governor James Cox in a landslide election based primarily on debate between isolationism and joining the League of Nations

Carefully selects some nominees for posts, but many come from the “Ohio Gang” –Friends/allies (poker buddies) of Harding’s from Ohio –Members of the Ohio Gang committed numerous scandals such as selling government jobs, pardons, and protection from prosecution –“The air [would be] heavy with tobacco smoke, trays with bottles containing every imaginable brand of whiskey…cards and poker chips at hand – a general atmosphere of waistcoat unbuttoned, feet on desk, and spittoons alongside.” –The Perils of Prosperity.

Teapot Dome Scandal –Albert B. Fall, Secretary of the Interior, is bribed to allow private companies to lease land (Teapot Dome, WY and Elk Hills, CA) with U.S. Navy oil reserves –Secretary Fall is first cabinet member to go to prison

Death of Harding –Harding goes on tour of West during height of scandals in Washington, D.C. –Dies of heart attack in San Francisco August 2, 1923 –Vice President John “Calvin” Coolidge takes over

Describe the presidency of Warren G Harding:

V. Coolidge Administration Coolidge distances himself from scandals by replacing many Harding appointments Coolidge believed that government should not interfere with business and its leadership Nicknamed “Silent Cal” for his simple and frugal manner

VI. Election of 1928 Republican Herbert Hoover was commerce secretary for eight years and food administration head during WWI Democrat Alfred Smith, governor of NY, was the first Catholic candidate Although religion and Prohibition were major issues, the election was decided on the economy Hoover wins in landslide ( Electoral College)

Describe why Herbert Hoover was elected during the Election of 1928:

VII. U.S. Isolationism U.S. afraid of another lengthy foreign war U.S. is dominant economic power U.S. refuses to join the League of Nations and adopts a policy of isolationism –Dawes Plan-Negotiations to help Germans pay war reparations and Allies pay back the U.S. –Washington Conference-Major powers (except Germany) freeze naval production and agree to respect territories in the Pacific and access to China –Kellogg-Briand Pact-A treaty to outlaw war signed by 62 countries (Major powers from WWI)

Describe the foreign policy of the United States in the 1920s:

Resistance to Modernity VIDEO QUESTION: KKK Ei-U6pmo (12:05 to end) Ei-U6pmo 7FE8RIbY (beginning to 1:00) 7FE8RIbY Describe the rise of the Ku Klux Klan and racial tensions in the 1920s

Resistance to Modernity VIDEO QUESTION: Rural Life oDFF9Dgs (14:00-end) oDFF9Dgs Describe life in rural America in the 1920s VIDEO QUESTION: Scopes Trial Ei-U6pmo (7:55 to 12:05) Ei-U6pmo Describe the Scopes Trial and other resistance to modernity in the 1920s

PROHIBITION VIDEO QUESTION: Prohibition =foooDFF9Dgs (0:42-3:35) =foooDFF9Dgs Describe the issues facing the United States in Prohibition