Unit 6

Until September 1929, the stock market continued to rise:

Many people borrowed money to buy stock, assuming prices would continue to go up. Some economists feared that stocks were over-priced.

"Drys" favored Prohibition:

hailing the law as a "noble experiment." Drys believed that Prohibition was good for society.

There were several causes of the Great Depression. There is still disagreement over which are most important. Each of the following contributed to dangerous economic conditions:

hardships in Europe and rural America uneven distribution of wealth speculation in the stock market increased personal debt

For many, the only food available came from__________________________________________ run by charitable organizations. People sold their property to buy food.

public soup kitchens or bread lines

The stock market crash didn't start the Great Depression by itself. Instead, it

quickened the collapse of the U.S. economy.

Harding was a popular, fun-loving president who trusted others to make decisions for him.

Some advisors, such as Mellon and Hoover, were honest, capable, and trustworthy. Others, including a group known as the "Ohio Gang," were not so civic-minded.

Many grew disillusioned during the Great Depression.

Some blamed Hoover and some blamed capitalism. Some were World War I veterans who wanted a bonus that was promised to them. In 1932, those veterans formed the Bonus Army and marched on Washington.

The world of sports produced some nationally famous heroes.

(Thanks to newspapers and radio, millions of people could follow their favorite athletes.) Baseball player Babe Ruth, nicknamed "The Sultan of Swat," thrilled people with his home runs.

What did Hoover do?

1. nothing- He told people to remain calm. The stock market crash was just a "correction". The economic slowdown was part of the business cycle. 2. asked business to keep wages, employment, and prices the same 3. asked people to give more to charity and states and local governments to provide more relief 4. approved some modest public works spending (ex. Hoover Dam) 5. refused to provide direct federal relief and run budget deficits 6. singed Smoot-Hawley Tariff bill 7. raised taxes in 1932 to balance the budget

On October 29th, the stock market went into a free fall as investors tried to sell at any price

16 million shares were sold on "Black Tuesday." Billions of dollars were lost in a few hours. Many who bought stocks on margin were wiped out.

Prohibition did not stop people from drinking alcoholic beverages:

A large illegal network created, smuggled, distributed, and sold alcohol, benefiting gangsters such as Al Capone. People bought alcohol illegally from bootleggers and at speakeasies. Prohibition contributed to the rise of organized crime

mass production techniques

A moving assembly line brought cars to workers, who each added one part. Ford consulted scientific management experts to make his manufacturing process more efficient. The time to assemble a Model T dropped from 12 hours to just 90 minutes.

The eviction of the Bonus Army doomed Hoover's bid for re-election.

Americans were ready for new leadership and a greater role for the government in solving problems.

New Orleans trumpet player Louis Armstrong was the unofficial ambassador of jazz:

Armstrong played in New Orleans, Chicago, and New York. His expert playing made him a legend and influenced the development of jazz.

How did African Americans express a new sense of hope and pride?

As a result of World War I and the Great Migration, millions of African Americans relocated from the rural South to the urban North. This migration contributed to a flowering of music and literature. Jazz and the Harlem Renaissance had a lasting impact on American culture.

Why did Herbert Hoover's policies fail to solve the country's economic crisis?

As the Great Depression spread misery across America, Herbert Hoover struggled unsuccessfully to respond to the nation's problems. As a result of Hoover's failed response, in 1932 Americans would turn to a new leader and increased government intervention to stop the depression.

Hoover saw that he must do something:

Asked businesses to keep wages, employment, and prices at current levels Called for tax cuts, lower interest rates, a balanced budget and public works Asked wealthy to donate more money to charity

Between 1930 and 1934, nearly a million farmers lost their farms, homes, and farm equipment because they could not pay their mortgages:

Bankers sold the land and equipment at auction. Some farmers became tenant farmers, working for bigger landowners. Others decided to leave in search of work elsewhere in the U.S.

Trends such as urbanization, modernism, and increasing diversity made some people lash out against change.

Beginning in 1915, there was a resurgence of the Ku Klux Klan. The Klan promoted hatred of African Americans, Jews, Catholics, and immigrants. By 1925, the Klan had between 4 and 5 million members.

Few Americans understood the causes of the Great Depression, but everyone felt the impact.

Between 1921-1929, the unemployment rate never rose above 4%. By 1933, however, it was near 25%. Those who managed to keep their jobs had their wages and hours cut.

The banking system feels the effects of the crash first. People fear that their money will be lost so they run to the bank and attempt to withdraw their funds.

But banks don't have enough of their money on hand as cash. These bank runs cause banks to fail.

Easy credit and installment buying lead people to purchase goods they can't pay for:

By 1929, Americans racked up more than $6 billion in personal debt — more than double the 1921 level.

Some Scandals of Harding's Administration:

Charles Forbes, head of the Veterans' Administration, wasted millions of dollars on overpriced, unneeded supplies. Attorney General Harry Daugherty accepted money from criminals. Secretary of the Interior Albert Fall took bribes in return for federal oil reserve leases.

Coolidge believed that "the chief business of the American people is business."

Coolidge continued Mellon's policies to reduce the national debt, trim the budget, and lower taxes. The country saw huge industrial profits and spectacular growth in the stock market. The middle and upper classes prospered, especially in cities.

In August 1923, Vice President Calvin Coolidge became President.

Coolidge was a quiet, honest, frugal Vermonter. As President, he admired productive business leaders.

Spread by radio and phonograph records, jazz gained worldwide popularity.

Duke Ellington was a popular band leader who wrote or arranged more than 2,000 pieces of music and earned international honors. Jazz bands featured solo vocalists such as Bessie Smith, the "Empress of the Blues." White composers such as Cole Porter, Irving Berlin, and George Gershwin found inspiration in jazz.

How did the prosperity of the 1920s give way to the Great Depression?

During the 1920s, many Americans enjoyed what seemed like an endless era of prosperity. But in 1929, the stock market crashed. Production fell, unemployment rose, and the economy went into a period of dramatic decline. Years after the Great Depression began, periodic contraction was seen as part of the business cycle.

How did the booming economy of the 1920s lead to changes in American life?

During the 1920s, the American economy experienced tremendous growth. Using mass production techniques, workers produced more goods in less time than ever before. The boom changed how Americans lived and helped create the modern consumer economy.

The remaining farmers on the Great Plains suffered a terrible drought, which led to the Dust Bowl.

Dust storms destroyed millions of acres of farmland.

In 1919, the _________________________, which banned the making, distributing, or selling of alcohol, became part of the Constitution.

Eighteenth Amendment

_______________________________ questioned concepts of personal sacrifice, glory, honor, and war and created a new style of writing.

Ernest Hemingway

Playwright ___________________________ explored the subconscious mind in his plays.

Eugene O'Neill

Minorities suffered even more during the depression:

Even in good times, African Americans were "last hired and first fired." Many were thrown off southern farms where they were sharecroppers. As Okies moved west to find work, Mexicans and Mexican Americans faced fierce competition for jobs. Local governments urged repatriation for Mexican Americans.

_______________________________ explored the idea of the American dream, writing that his generation had found "all faiths in man shaken."

F. Scott Fitgerald

Business Failures:

Factories closed, causing worker layoffs. This lowered demand for goods. By 1933, the unemployment rate reached 25%.

While cities and suburbs benefited from the economic boom, rural America struggled.

Farm incomes declined or remained flat through most of the 1920s.

Despite Hoover's confidence, some saw signs of weakness in the economy. The agricultural sector was in trouble. Rural farmers produced huge surpluses of food that depressed prices.

Farmers could not afford to buy goods or repay their loans.

Millions of tons of topsoil were blown away in giant dust storms.

Farmers had dug up thick prairie grasses to plant wheat so there was nothing to hold the soil in place. 100 mile-per-hour winds blew dust clouds 8,000 feet tall in Oklahoma, Texas, New Mexico, and Colorado. Wildlife and farm animals suffocated in the choking winds.

Coolidge ignored such issues, believing it was not the federal government's job to legislate social change:

Farmers struggled as agricultural prices fell. Labor unions fought for higher pay and better working conditions. African Americans and Mexican Americans faced severe discrimination.

In the 1920s, urban dwellers saw an increase in leisure time:

Farmers worked from dawn to dusk and had little time for recreation. In cities and suburbs, people earned more money and had more time for fun. They looked for new kinds of entertainment.

In 1924, the National Origins Act set up a quota system for immigrants:

For each nationality, the quota allowed up to 2% of 1890's total population of that nationality living in the U.S.

Jamaican immigrant Marcus Garvey encouraged black pride:

Garvey promoted universal black nationalism and support of black-owned businesses. He founded a "Back to Africa" movement and the Universal Negro Improvement Association. Eventually, Garvey was convicted of mail fraud and deported.

Herbert Hoover did not cause the Crash, but his failure to respond to the effects of the crash may have made a recession turn into a depression. Americans looked to him to solve the crisis.

He tried a number of different approaches, but in the end he failed to discover the right formula for stopping the crisis.

Before 1920, only wealthy people could afford cars By applying innovative manufacturing techniques, ___________________ changed that. His affordable Model T became a car for the people.

Henry Ford

20,000 veterans set up camps and occupied vacant buildings. In July, police tried to evict them and riots erupted:

Hoover ordered General Douglas MacArthur to remove the veterans. He used tear gas, cavalry, tanks, and troops with fixed bayonets. Press photos of troops using excessive force angered the American public.

The homeless lived in empty railroad cars, in cardboard boxes, or in shacks built on public land or empty lots.

Hoovervilles appeared in major cities across the country.

During the 1920s, cities grew rapidly.

Immigrants, farmers, African Americans, and Mexican Americans were among those who settled in urban areas.

The Teapot Dome scandal became public :

In 1921, Fall took control of federal oil reserves intended for the navy. He then leased those reserves to private oil companies. Fall was sent to prison. President Harding did not live to hear all of the scandal's details. He died in 1923.

Harlem, in New York City, was the cultural focal point of the northern migration.

In Harlem, 200,000 African Americans mixed with immigrants from Caribbean islands such as Jamaica.

Aviator Charles Lindbergh became a national hero when he made the first solo flight across the Atlantic:

In May 1927, Lindbergh flew his single-engine plane, Spirit of St. Louis, non-stop from New York to Paris. The flight took more than 33 hours.

In 1920, for the first time, more Americans lived in cities than in rural areas:

In cities, many people enjoyed prosperity and were open to social change and new ideas Times were harder in rural areas. Rural people generally preferred traditional views of science, religion, and culture.

The Great Crash was a hallmark of the nation's business cycle. The economy periodically grows and then contracts.

In growth periods, workers are hired, wages rise, and demand for products increases. In contraction periods, workers are fired, wages drop, and demand for products falls.

Farmers who had lost their land, called Okies regardless of where they were from, were forced to leave.

In old trucks, they moved west or to northern cities. 800,000 Okies left Texas, Oklahoma, Missouri, and Arkansas alone. Rural states lost population during the 1930s. Those who could afford it bought distressed neighbors' farms at low prices to build expanded commercial farms.

One of the new kinds of entertainment was the motion picture.

In the 1920s, 60 to 100 million people went to the movies each week. Throughout most of the decade, movies were silent, so people could watch them no matter what language they spoke.

How did Americans differ on major social and cultural issues?

In the 1920s, many city dwellers enjoyed a rising standard of living, while most farmers suffered through hard times. Conflicting visions for the nation's future heightened tensions between cities and rural areas.

Secretary of Commerce Herbert Hoover sought voluntary cooperation between labor and business :

Instead of relying on legislation to improve labor relations, Hoover got business and labor leaders to work together.

As the Great Depression began, the Harlem Renaissance came to an end. Yet this artistic movement had a lasting effect on the self-image of African Americans.

It created a sense of group identity and soldarity among African Americans. It later became the cultural bedrock upon which the Civil Rights movement would be built.

The 1920s was known as the "Jazz Age.":

Jazz was a kind of music based on improvisation that grew out of African American blues and ragtime. It began in southern and southwestern cities such as New Orleans. Jazz crossed racial lines to become a uniquely American art form.

___________________ the most celebrated Harlem Renaissance writer, captured the diversity of everyday African American life in his poetry, journalism, and criticism.

Langston Hughes

At the start of the economic downturn, Hoover took a hands-off approach.

Like most economists of the day, he believed that up and down swings in the economy were a natural part of the business cycle. It was thought that strong businesses would weather storms without the support of the government.

Writers of the 1920s were called the ______________________________________ because they'd lost faith in Victorian cultural values.

Lost Generation

Immigrants were at the center of another cultural clash.

Many Americans recognized the importance of immigration to U.S. history. Many Mexicans settled in the sparsely populated areas of the southwest. Nativists feared that immigrants took jobs away from native-born workers and threatened American traditions. After World War I, the Red Scare increased distrust of immigrants.

Others embraced the idea of racial, ethnic, and religious diversity.

Many valued the idea of the United States as a "melting pot." Groups such as the NAACP and the Jewish Anti-Defamation League worked to counter the Klan and its values.

An example of this clash of values was the tension between modernism and Christian fundamentalism in the 1920s:

Modernism emphasized science and secular values. Fundamentalism emphasized religious values and taught the literal truth of the Christian Bible

Cities expanded outward, thanks to automobiles and mass transit systems.

More and more people who worked in cities moved to the suburbs. Suburbs grew faster than inner cities.

The decade saw many "firsts" for women:

More women entered the workforce. They moved into new fields such as banking, aviation, journalism, and medicine. Nellie Tayloe Ross of Wyoming became the first female governor. Other "firsts" included the first woman judge and the first woman elected to the U.S. Senate.

Movies were affordable and available to everyone, everywhere:

Movies' democratic, universal appeal created stars known the world over. Charlie Chaplin became the most popular silent film star by playing "The Little Tramp." In 1927, Al Jolson appeared in The Jazz Singer, the first "talkie," ending the era of silent films.

The 1920s saw a consumer revolution:

New products flooded the market. Advertising created demand Using installment buying, people could buy more

Jazz and the blues were part of the Harlem Renaissance, a flowering of African American arts and literature:

Novelists, poets, and artists celebrated their culture and explored questions of race in America. Jean Toomer's Cane showed the richness of African American life and folk culture. The writings of Claude McKay emphasized the dignity of African Americans and called for social and political change.

____________________ became law in the United States

Prohibition

How did domestic and foreign policy change direction under Harding and Coolidge?

Rather than pursuing Progressive reform, Presidents Warren G. Harding and Calvin Coolidge favored conservative policies that aided business growth. Foreign policy during this time was largely a response to the devastation of World War I.

How the Automobile Changed America

Road construction boomed, and new businesses opened along the routes. Other car-related industries included steel, glass, rubber, asphalt, gasoline, and insurance. Workers could live farther away from their jobs. Families used cars for leisure trips and vacations. Fewer people traveled on trolleys or trains

The Scopes Trial illustrated a major cultural and religious division, but it did not resolve the issue.

Scopes was found guilty of teaching evolution and fined.

One policy that did succeed was the construction of Boulder Dam (later renamed Hoover Dam) across the Colorado River.

Started in 1930, the huge dam provided power for millions and irrigation for farm land, and put thousands to work. But Hoover did not believe government should create jobs, nor incur debt.

Education became a battleground for fundamentalist and modernist values in the 1925 Scopes Trial.

Tennessee made it illegal to teach evolution in public schools. Biology teacher John Scopes challenged the law. Defense attorney Clarence Darrow tried to use science to cast doubt on religious beliefs.

In 1932, Hoover urged Congress to create the Reconstruction Finance Corporation (RFC). The RFC employed a policy known as trickle down economics.

The RFC gave billions of dollars to banks and large businesses. The idea was that they would lend to, and invest in, struggling businesses who would hire workers and thus end the depression. The RFC failed when businesses did not hire more workers.

In the 1928 presidential race, the Republican Party was confident:

The Republicans took credit for the strong economy. Their presidential candidate was Herbert Hoover. He believed in voluntary cooperation between business and labor.

Much of U.S. foreign policy was a response to World War I's devastation.

The Washington Naval Disarmament Conference limited construction of large warships. The Kellogg-Briand Pact, signed by 62 countries, outlawed war. But the U.S. refused to join the World Court.

How did the new mass culture reflect technological and social changes?

The automobile made it easier for people to travel. Other technological advances, such as radio and film, created a new mass culture. New styles also emerged in art and literature. In many ways, the 1920s represented the first decade of our own modern era.

Radios:

The first commercial radio station, KDKA, began in 1920. Within three years, there were 600 radio stations. People all over the country could hear the same music, news, and shows

How did the Great Depression affect the lives of urban and rural Americans?

The stock market crash signaled the end of boom times and the economy staggered into the Great Depression. Desperate poverty gripped the nation leaving a permanent impression on those who lived through it. Tested by extreme hardship, this generation forged a strong character and will to restore prosperity.

Congress passed the Hawley-Smoot Tariff to protect American manufacturers from foreign competition.

The strategy was a mistake. Other nations retaliated and raised tariffs as well. The resulting drop in world trade only made the glut of American factory and farm products harder to sell.

World War I strongly affected the art and literature of the 1920s:

The war's devastation left many questioning the optimistic Victorian attitude of progress. Modernism expressed a skeptical, pessimistic view of the world. Writers and artists explored the ideas of psychologist Sigmund Freud, who suggested that human behavior was driven by unconscious desires.

Flappers represented a "revolution in manners and morals."

These young women rejected Victorian morality and values. They wore short skirts, cut their hair in a short style called the bob, and followed dance crazes such as the Charleston.

Many African Americans were attracted to northern cities by dreams of a better life:

They hoped to escape the poverty and racism of the South. The North offered higher wages and a middle class of African American ministers, physicians, and teachers. Discrimination did exist in the North, however, and African Americans faced low pay, poor housing, and the threat of race riots.

Family life was hurt by the great depression

Those who still had jobs lived in fear that their next paycheck would be their last Those who were still working felt guilty because friends and relatives were unemployed America's birthrate fell to its lowest level on record Some teens ran away and families broke up

Rising stock market prices also contributed to economic growth.

Throughout the 1920s, a bull market meant stock prices kept going up. Investors bought on margin, purchasing stocks on credit. By 1929, around four million Americans owned stocks.

During this period the United States also became a world economic leader.

To protect American businesses, Harding raised tariffs on imported goods by 25%. European nations retaliated, creating a tariff war. The Dawes Plan loaned money to Germany so that Germany could pay reparations to Britain and France; in turn, those countries could repay the U.S. for wartime loans.

Hoover put his faith in localism, a policy whereby problems are best solved at the local and state levels.

Towns and states didn't have the necessary resources to deal with the depression. Hoover did not support direct federal aid to individuals.

In 1920 Warren G. Harding was elected President, promising a "return to normalcy." :

Unlike Progressives, Harding favored business interests and reduced federal regulations. His Secretary of the Treasury Andrew Mellon was for low taxes and efficiency in government. Mellon cut the federal budget from a wartime high of $18 billion to $3 billion.

Attitudes toward education illustrate another difference between urban and rural perspectives.

Urban people saw formal education as essential to getting a good job. In rural areas, "book learning" interfered with farm work and was less highly valued.

The ________________________ enabled the government to enforce the amendment.

Volstead Act

Rising wages masked an uneven distribution of wealth:

While factory workers' wages rose 8%, factory output increased by 32%. As a result, worker incomes rose modestly, while rich investor incomes skyrocketed.

Ford also raised his workers' pay and shortened their hours.

With more money and more leisure time, his employees would be potential customers. By 1927, 56% of American families owned a car.

Phonographs

With phonographs, people could listen to music whenever they wanted. Improvements in recording technology made records popular. People listened to the same songs and learned the same dances.

Women's roles also changed in the 1920s:

Women married later, had fewer children, and generally lived longer, healthier lives. Labor-saving appliances, such as electric irons and vacuum cleaners, allowed time for book clubs, charitable work, and new personal interests. Such changes benefited urban women more than rural women.

_____________________________________ published folk tales from her native Florida. Her novel Their Eyes Were Watching God speaks of women's longing for independence.

Zora Neale Hurston

"Wets" opposed Prohibition

claiming that it did not stop drinking. Wets argued that Prohibition encouraged hypocrisy and illegal activity

Ford made the Model T affordable by applying ________________________________ techniques to making cars.

mass production

The 1920s were a time of rapid economic growth in the United States. Much of this boom can be traced back to ______________________

the automobile

Artists such as Edward Hopper, Joseph Stella, and Georgia O'Keefe challenged ____________________________________________________________________________________________________________

tradition and experimented with new subjects and abstract styles.

As international trade falls, a global drop in business leads to a ___________________________________

worldwide depression.