1. C ALL TO F REEDOM HOLT HOLT, RINEHART AND WINSTON 1865 to the Present 1 THE 1920S: 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 Chapter 12

2. C ALL TO F REEDOM HOLT HOLT, RINEHART AND WINSTON 1865 to the Present 2 OBJECTIVES What difficulties did the United States face when making the transition from war to peacetime? 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? What were some of the causes of the strikes and riots of 1919? How did the Red Scare affect American society? How did the Red Scare affect American society? Section 1: Returning to Normalcy

3. C ALL TO F REEDOM HOLT HOLT, RINEHART AND WINSTON 1865 to the Present 3 Difficulties in the Transition to Peace U.S. struggled through a period of demobilization – the process of returning to a peacetime economy. 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. 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. To make room for the men, women were forced to give up their jobs. Business began laying off employees. Business began laying off employees. Prices and unemployment continued to rise but wages fell or stayed about the same. Prices and unemployment continued to rise but wages fell or stayed about the same. Section 1: Returning to Normalcy

4. C ALL TO F REEDOM HOLT HOLT, RINEHART AND WINSTON 1865 to the Present 4 Causes of Strikes and Riots of 1919 Workers went on strike for better pay. Workers went on strike for better pay. In February 1919 union workers in the shipbuilding industry went on strike in Seattle, Washington. 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. 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. September 1919, police in Boston went on strike and the state militia was called in to restore order. Section 1: Returning to Normalcy

5. C ALL TO F REEDOM HOLT HOLT, RINEHART AND WINSTON 1865 to the Present 5 The Red Scare and American Society Strikes and riots of 1919 led to fears that a communist revolution might occur in the U.S. 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. 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. Many Americans stereotyped a majority of European immigrants as being dangerous. Section 1: Returning to Normalcy

6. C ALL TO F REEDOM HOLT HOLT, RINEHART AND WINSTON 1865 to the Present 6 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. 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. The Red Scare added to the climate of xenophobia – the fear and hatred of foreigners. Section 1: Returning to Normalcy (continued)

7. C ALL TO F REEDOM HOLT HOLT, RINEHART AND WINSTON 1865 to the Present 7 OBJECTIVES How did the Harding and Coolidge administration address economic issues? How did the Harding and Coolidge administration address economic issues? What foreign policy did the United States follow during the 1920s? What foreign policy did the United States follow during the 1920s? Why did Republicans win the presidential elections of the 1920s? Why did Republicans win the presidential elections of the 1920s? Section 2: Republicans in Power

8. C ALL TO F REEDOM HOLT HOLT, RINEHART AND WINSTON 1865 to the Present 8 Harding and Coolidge and the Economy Both were pro-business. Both were pro-business. They supported aid to farmers. They supported aid to farmers. Congress passed many tax cuts under Coolidge. 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. Harding kept government spending to a minimum and favored low taxes, low interest rates on loans, high tariffs, and little economic regulation. Section 2: Republicans in Power

9. C ALL TO F REEDOM HOLT HOLT, RINEHART AND WINSTON 1865 to the Present 9 U.S. Foreign Policy in the 1920s The U.S. promoted peace and economic growth abroad. 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. 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. The U.S. supported disarmament – the practice of limiting military weapons. Section 2: Republicans in Power

10. C ALL TO F REEDOM HOLT HOLT, RINEHART AND WINSTON 1865 to the Present 10 U.S. Foreign Policy in the 1920s At the Washington Conference (1921), the U.S. and other countries signed the Five- Power Naval Treaty, which limited the maximum size of each countrys Navy. At the Washington Conference (1921), the U.S. and other countries signed the Five- Power Naval Treaty, which limited the maximum size of each countrys Navy. In August 1928, the U.S. and 14 other countries signed the Kellogg-Briand Pact, which tried to outlaw war. In August 1928, the U.S. and 14 other countries signed the Kellogg-Briand Pact, which tried to outlaw war. Section 2: Republicans in Power (continued)

11. C ALL TO F REEDOM HOLT HOLT, RINEHART AND WINSTON 1865 to the Present 11 Republicans Win the Election of 1928 Candidates reflected the growing political differences between rural and urban America. Candidates reflected the growing political differences between rural and urban America. Protestants opposed Democratic candidate Alfred E. Smith because he was Catholic. 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 countrys economic success. Republican candidate Herbert Hoover seemed to represent traditional values and was linked to the countrys economic success. Section 2: Republicans in Power

12. C ALL TO F REEDOM HOLT HOLT, RINEHART AND WINSTON 1865 to the Present 12 OBJECTIVES How did the assembly line affect manufacturing? How did the assembly line affect manufacturing? What effect did the automobile have on the economy and peoples everyday lives? What effect did the automobile have on the economy and peoples everyday lives? How did advertising and installment plans change peoples buying habits? How did advertising and installment plans change peoples buying habits? Section 3: The Business of America is Business

13. C ALL TO F REEDOM HOLT HOLT, RINEHART AND WINSTON 1865 to the Present 13 The Assembly Line and Manufacturing The assembly line was a faster method of building cars used in Henry Fords automobile factory. The assembly line was a faster method of building cars used in Henry Fords automobile factory. It moved quickly because each person did one simple task repeatedly. 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 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. The stress of assembly line jobs caused workers to quit on a regular basis leading to retraining expenses for manufacturers. Section 3: The Business of America is Business

14. C ALL TO F REEDOM HOLT HOLT, RINEHART AND WINSTON 1865 to the Present 14 Effects of the Automobile on the Economy and Peoples Lives The automobile supplied the public with inexpensive transportation. The automobile supplied the public with inexpensive transportation. Millions of workers held jobs that supported automobile manufacturing. Millions of workers held jobs that supported automobile manufacturing. Automobiles changed the landscape of America with the building of new communities. Automobiles changed the landscape of America with the building of new communities. Section 3: The Business of America is Business

15. C ALL TO F REEDOM HOLT HOLT, RINEHART AND WINSTON 1865 to the Present 15 Effects of the Automobile on the Economy and Peoples Lives Federal and state governments funded bridge, highway and tunnel construction projects. Federal and state governments funded bridge, highway and tunnel construction projects. Families began taking driving vacations and roadside businesses developed. Families began taking driving vacations and roadside businesses developed. Section 3: The Business of America is Business (continued)

16. C ALL TO F REEDOM HOLT HOLT, RINEHART AND WINSTON 1865 to the Present 16 Advertising and Installment Buying and the Consumer The birth of new products led to a boom in advertising and installment buying. 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. Advertisers helped create nationally known brand names and encouraged people to buy products. Advertisements promised Americans more leisure time. Advertisements promised Americans more leisure time. Section 3: The Business of America is Business

17. C ALL TO F REEDOM HOLT HOLT, RINEHART AND WINSTON 1865 to the Present 17 Advertising and Installment Buying and the Consumer Installment plans allowed people to buy goods that had once been out of their reach. 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 Section 3: The Business of America is Business (continued)

18. C ALL TO F REEDOM HOLT HOLT, RINEHART AND WINSTON 1865 to the Present 18 OBJECTIVES What caused the stock market boom in the 1920s? What caused the stock market boom in the 1920s? What were the characteristics of sick industries in the 1920s? What were the characteristics of sick industries in the 1920s? What difficulties did organized labor and the agricultural industry experience during the 1920s? What difficulties did organized labor and the agricultural industry experience during the 1920s? Section 4: The U.S. Economy

19. C ALL TO F REEDOM HOLT HOLT, RINEHART AND WINSTON 1865 to the Present 19 Causes of the Stock Market Boom in the 1920s Governments pro-business policies and the 1920s production led to increased profits for many companies. Governments 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. From 1923-1928 stock sales on the New York Stock Exchange increased by nearly 400 percent as Americans dreamed of great wealth. Section 4: The U.S. Economy

20. C ALL TO F REEDOM HOLT HOLT, RINEHART AND WINSTON 1865 to the Present 20 Causes of the Stock Market Boom in the 1920s People borrowed money to buy stock. 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. Business owners, such as J.C. Penney who owned a chain of department stores, offered stock options to managers. Section 4: The U.S. Economy (continued)

21. C ALL TO F REEDOM HOLT HOLT, RINEHART AND WINSTON 1865 to the Present 21 Characteristics of Sick Industries "Sick industries" did not share in the nations prosperity and struggled. "Sick industries" did not share in the nations prosperity and struggled. They were slow or unable to adapt to changing technology and consumer demand. 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. Struggling industries included coal, lumber and textiles whose products were being replaced with more modern materials. Section 4: The U.S. Economy

22. C ALL TO F REEDOM HOLT HOLT, RINEHART AND WINSTON 1865 to the Present 22 Difficulties of Organized Labor and Agriculture During the 1920s Unions lost government support in peacetime. Unions lost government support in peacetime. Businesses stopped hiring union workers. Businesses stopped hiring union workers. Violent strikes of 1919 had led to strong antiunion feelings. 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. Union membership dropped and many industries became closed shops where only union members could work. Section 4: The U.S. Economy

23. C ALL TO F REEDOM HOLT HOLT, RINEHART AND WINSTON 1865 to the Present 23 Difficulties of Organized Labor and Agriculture During the 1920s With the end of war, farmers supply was higher than demand. With the end of war, farmers supply was higher than demand. Food prices dropped and farmers could not pay their debts and lost their land. 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. Republican leaders did not want to interfere with the free-enterprise system by regulating farm prices. Section 4: The U.S. Economy (continued)