THE 1920’S AND THE GREAT DEPRESSION

Return to Normalcy After World War I, Americans wanted to “return to normalcy.” Many Americans wanted to go back to the “good old days.” But new changes were happening in America.

By the 1920s: Americans lived in cities rather than in rural areas Instead of being farmers, Americans worked in business and industry Business boomed in America The wealthiest years were when Calvin Coolidge was president. New inventions helped industries make more money and hire more workers. Some new products were Radios Washing Machines Refrigerators

The greatest boom was in the auto industry (cars). Henry Ford invented an automobile known as the Model T. This car was low priced and allowed many people to afford to buy it. This boom in automobiles gave a boost to other industries. Cars needed: Steel Paint Tires Gas Better roads New highways These new industries also created more gas stations and restaurants. The housing industry also boomed as people moved out of crowded cities to suburbs.

Life in the Jazz Age Cars gave people the freedom to visit other parts of the country much easier than before. Radios and the movies brought further changes to entertainment. Benefits from radio: Millions of Americans tuned in each night to their favorite radio programs News was heard within hours after it happened Sports such as college football and World Series games can be heard Movies created new heroes for people Movie stars become famous (Charlie Chaplin)

Jazz Age The 1920s were also known as the Jazz Age. Jazz was the new energetic kind of music. Jazz became popular among African American musicians in New Orleans. One famous jazz musician was Louis Armstrong. Jazz helped create the Harlem Renaissance. This was the rebirth of African American culture. In the 1920s African American writers and artists flocked to Harlem in New York City.

Women in the 1920’s The change of the 1920s also affected women’s lives. The 19 th Amendment was passed and gave women the right to vote. New products also made women’s lives easier: Ready made clothes (women no longer had to sew as much) Refrigerator Vacuum cleaners Electric iron These appliances made women’s lives easier and gave them more time. Women also enjoyed new freedom. Women who wore short hair and wore short skirts were considered flappers. Why might this have been shocking behavior?

THE GREAT DEPRESSION

What is it? The period between was known as the Great Depression. The Great Depression was the worst economic disaster in American History.

Why did this happen? Cause #1: We were still producing like we were at war. Factories were making more products than we needed. Some factories were not making as much money and had to lay off workers.

Cause # 2 Many working class families bought new technology using credit. Families went into debt because they could not pay off their credit

Cause # 3 Many people used the stock market to make money fast The problem with that is that they brought these stocks with credit. When the stocks were not doing so good thousands of people sold their shares causing prices to drop. On October 29, 1929 more than 16 million shares were sold. The stock market crashed.

This day became known as Black Tuesday The stock market crash set the U.S. on a downward slide. Businesses were no longer worth anything and were forced to close. Banks lost money when businesses couldn’t repay loans and were forced to close Whoever had their money in the bank lost their money

Result of the Depression Millions of people were out of work Homes and farms were foreclosed Those people who had nowhere to go loved in “Hoovervilles” or shanty towns that were named after President Hoover. Almost half of the children in U.S. were underfed, sick, and had no place to live Severe droughts and dust storms made the Great Depression even worst. Many Wealthy people who lost their money in the stocks committed suicide.

World Wide Depression

Postwar Europe After WWI European nations were rebuilding war-torn economies. They were aided by loans from the prosperous U.S. Only the U.S. and Japan came out of the war in better financial shape than before. After the war, European countries were in bad political and economic shape.

Postwar Europe Continued Even nations that had democratic governments for many years experienced problems. They had so many political parties that no one party could rule enough to rule effectively. When no single party won a majority, a coalition government, or temporary alliance of several parties, was needed to form a parliamentary majority. In addition, governments lasted for such a short time that it was hard to develop policies. Because of this voters in several countries were willing to sacrifice democratic government for strong, authoritarian leadership.

The Weimar Republic The situation was the worst in Germany. The people felt little loyalty to the government. Germany’s government, the Weimar Republic, was very weak. Prices rose sharply, and money lost its value. Later, American bank loans helped the German economy recover. The Dawes Plan provided $200 million loan from American banks to stabilize German currency and strengthen its economy. The plan also set a more realistic schedule for Germany’s reparations payments.

The Weimar Republic World nations also took steps to try to make sure there would be lasting peace. France and Germany promised never to attack one another. Most countries of the world signed a treaty in which they pledged not to go to war. There was no way to enforce the treaty, however.

Global Depression After things began to go bad in the U.S. those American bankers who had helped and invested their money in Europe demanded repayment from the Europeans. The American market for European goods dropped sharply as the U.S. placed high tariffs on imported goods so the American dollars would stay in the U.S. and pay for American goods. It backfired. This set a chain reaction; other countries raised their tariffs and world trade dropped resulting in more of an economic downfall and a huge jump in unemployment.