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1920s – Political and Economic. Unit 8.2. Post WWI Economy. The decade after WWI was overall good for the economy. WHY? Productivity, Technologies, Gold from WWI, Gov’t Policy was Pro-Business But later in the decade there were signs that it was not all good. Why were the flaws ignored?
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1920s – Political and Economic Unit 8.2
Post WWI Economy • The decade after WWI was overall good for the economy. WHY? Productivity, Technologies, Gold from WWI, Gov’t Policy was Pro-Business • But later in the decade there were signs that it was not all good. Why were the flaws ignored? • Great Migration continues. Blacks move to northern cities for the jobs. Did they find good relations there compared to the segregated South?
Farmers – good, then Bad • WWI and post-war boom • Why? And what did they do with this money? • Advances: tractors, fertilizers, hybrids, pest control • Advances = more food. • Europe at peace = less demand • More food (supply), less demand = lower prices • Good for consumers, why not farmers? • McNary-Haugen bill – farmers wanted “parity” • Guaranteed to not lose money. Why is “un-American?” (vetoed later) • Later in decade, hard times and farmers enter the depression before the stock-market crash. Why?
Supply increases, what happened to price? So, what will happen to the price of food when the supply goes up and the demand goes down? Good for consumers. What about farmers? Demand decreases, what happen to price?
Manufacturing – battle the union influence • Factory owners saw what had happened in Russia. • Tried to curb power of the unions both positively and negatively. • Welfare Capitalism • Gave workers many of the things unions would fight for • Shortened work weeks • Paid vacation leave • More safety • “American Plan” • States would start to outlaw closed shops • Open shops – can chose whether to join union or not.
The Republican Decade • 1920 Election • Rep – Warren G. Harding Dem- James Cox (Debs) • “Return to Normalcy” • 1924 Election • Rep – Calvin Coolidge Dem – John Davis (La Follette) • 1928 Election • Rep – Hebert Hoover Dem – Al Smith (why some against him?) • But who was the most important Republican of them all (and never President)?
Business-Friendly Government • Led by Sec. of Treasury Andrew Mellon • Raised tariffs with the Fordney-McCumber Tariff • Regulations from Progressive era are relaxed • “Trickle-down Economics” – tax cuts to the rich • Businesses thrived and Republicans would boost of the “Coolidge Prosperity.” • Hoover suggested in ’28 election that poverty would be eliminated altogether soon. What happened?
Harding Scandals • President Harding choose for his cabinet many of his friends in what become known as The Ohio Gang. • Had multiple scandals • Teapot Dome – most famous • Bribes for oil leases near Teapot Dome, Wyoming • Sec. of Interior Albert Fall later convicted.
Red Scare • After WWI, led by Attorney General A. Mitchell Palmer • Palmer Raids tried to round up Communists, Socialists and Anarchists • Sacco and Vanzetti trial – Two Italian, anarchist immigrants convicted of robbery and murder. • The Red Scare was used against immigrants and unions during the 1920s
The Rise of the KKK • Birth of a Nationmovie from decade before fueled growth. • The KKK would grow as Klaverns were established in the Midwest • The Klan fought for WASPs and those with “Teutonic stock” Used the idea of Americanism and Christian values as they were against Catholics, Jews, foreigners, and suspected communists (as well as still against blacks) • The Klan State: Indiana (led by David Stephenson) • Revelations of fraud and corruption led to its decline
Quota Laws • Dillingham Report – basically immigrants were the root of our nation’s problems. • Quota Act of 1921 – 3% of 1910 census allowed in • National Origins Act of 1924 – 2% of 1890 census • Before arrival of New Immigrants • How did the Red Scare and rise of the KKK go along with this idea? • How did Prohibition and Marijuana laws fit into this idea?
Credit and a False sense of Prosperity • Both consumers and businesses used more credit • Installment Plan – making payments • Buying on Margin – buying stocks using loans • Uneven distribution of wealth – wages increased very little compared to corporate profits and income of richest 5% (up over 33% in 20s) • Consumerism and Advertising effects • “lifestyles” • New products (“had to have”)
Florida in the 1920s Boom Bust Land bubble burst Hurricanes hit hard Florida enters Great Depression well before 1929 crash. • First half of the decade fueled by a land boom
Links • http://www.youtube.com/watch?v=UomPUYgxSTY&feature=related – Klan parade in DC • http://www1.assumption.edu/ahc/1920s/eugenics/klan.html - KKK in 1920s • http://www.youtube.com/watch?v=aoMPObGmzlQ&feature=relmfu – review video • http://www.youtube.com/watch?v=PV8eluoWbno – history of the KKK, History Channel
Reflection Questions • How was the impact of WWI experienced in the 1920s politically? • How was the impact of WWI experienced in the 1920s economically? • What were the policies of the Republicans toward businesses in the 1920s? • How are the ideas of the immigration quotas, KKK, and Red Scare related? • Although the 1920s was good for some, what were some of the underlying problems that would lead to the Great Depression?
