1920s

1920s Overview

  • In the 1920s, the United States experienced significant political and cultural shifts following World War I.

    • The public became weary of the conflict, progressive reforms, and President Woodrow Wilson's idealism.

  • Warren G. Harding, running on a platform of "Return to Normalcy," won the 1920 election by a landslide.

    • His platform included promises to restore stability, embrace traditional values, and end previous activism.

    • Harding's presidency marked a conservative shift away from progressive reforms and policies.

1920s Pro-Business Policies

  • The decade was characterized by pro-business Republican presidents:

    • Warren G. Harding

    • Calvin Coolidge

    • Herbert Hoover

  • Core Beliefs of Republican Presidents:

    • The government should support business growth through limited regulation and lower taxes.

    • High protective tariffs to safeguard American industries.

  • Key Policies Leading to Economic Boom (1922-1929):

    • Tax cuts for the wealthy, influenced by Treasury Secretary Andrew Mellon, although many felt disconnected from typical American struggles.

    • Fordney-McCumber Tariff Act: Raised tariffs by 25%, impacting trade.

    • Ineffective enforcement of antitrust laws to support business interests.

    • Quote by Coolidge: "The business of America is business."

  • Effects of Economic Policies:

    • Unemployment remained low (<4%) and standard of living increased, though the benefits were not uniformly distributed.

Industrial Progress and Impact

  • Productivity Innovations:

    • Influence of Frederick Taylor's scientific management principles.

    • Henry Ford perfected assembly line techniques, introducing the $5-day wage.

    • Manufacturing output surged by 64%, making goods cheaper and more accessible.

  • Energy Sources Shifts:

    • Oil emerged as the main fuel, surpassing coal.

    • Usage of electricity rose by 300%, leading to widespread adoption of appliances.

  • Government Economic Policies:

    • Corporate tax cuts and high tariffs benefitted U.S. industries.

    • The Federal Reserve maintained low interest rates, initially encouraging investment and speculation, but later actions to tighten the money supply negatively impacted the economy.

The Role of Automobiles

  • The automobile emerged as a dominant economic force comparable to railroads in earlier decades.

    • It stimulated industries such as steel, glass, rubber, oil, and road construction.

  • Social Consequences:

    • Growth of suburbs and altered dating and leisure activities.

    • Increased mobility led to traffic congestion and related accidents.

Consumerism in the 1920s

  • The 1920s saw a rise in mass advertising and installment buying ("buy now, pay later").

    • Consumer credit grew as a contributing factor to the 1929 stock market crash, with widespread purchases of radios, cars, and other goods.

    • The expansion of chain stores facilitated access to a variety of products.

Economic Divide and Challenges

  • Despite an era of prosperity, not all Americans benefited:

    • 40% of families lived near poverty, with wealth concentrated at the top.

    • Structural weaknesses in economy included overproduction, underconsumption, and significant income inequality.

Struggles of Farmers and Laborers

  • Farmers:

    • Post-WWI, demand for crops decreased, leading to price drops and increased debt due to overproduction.

    • The McNary-Haugen Bill, intended to support farmers, was vetoed by Coolidge, leading to an ongoing farm crisis throughout the decade.

  • Labor:

    • Union membership declined by 20%.

    • Policies favored open shops and welfare capitalism, which aimed to deter unionization.

    • Courts commonly issued injunctions against strikes, siding with management in disputes.

Cultural Changes and Conflicts

  • The 1920s witnessed cultural clashes between urban and rural populations, modern and traditional values, and generational differences.

  • Modern Culture and The Jazz Age:

    • Rise of radio and mass entertainment through Hollywood, fostering a celebrity culture.

  • Women's Rights:

    • Passage of the 19th Amendment (1920) granted women the right to vote.

    • The emergence of flappers represented a break from traditional gender roles; increased birth control activism spearheaded by Margaret Sanger led to changing social norms.

    • Divorce rates saw a notable increase.

  • Religious Conflict:

    • The Scopes Trial (1925) illustrated tensions between modernist and fundamentalist views, particularly regarding evolution.

  • Anti-Immigrant Sentiment:

    • Nativism surged with restrictive immigration quotas in the 1921 and 1924 Acts, which favored Northern Europeans.

    • Cases like Sacco and Vanzetti highlighted anti-immigrant prejudice.

    • The Ku Klux Klan saw a resurgence, targeting various groups including Blacks, Catholics, Jews, and immigrants during the period.

The Great Depression and New Deal (1929-1941)

  • Bonus Army March (1932):

    • Veterans marched to Washington, D.C. to demand early payment of bonuses promised for their WWI service.

    • Hoover ordered the eviction of the Bonus Army, leading to significant backlash against his administration.

  • The Great Depression resulted in dire economic conditions: 225,000 workers laid off from U.S. Steel, with 800 banks failing and millions of savings accounts lost following the stock market crash.

  • Unemployment reached 15% (16 million) of the population in 1933.

Response to the Depression under Hoover and FDR

  • President Hoover is often criticized for his laissez-faire approach, encapsulated in his "Rugged Individualism" philosophy aimed at promoting self-reliance without government interference.

  • Under Hoover, notable acts included:

    • Hawley-Smoot Tariff Act (1930): Increased tariffs and may have worsened economic instability.

    • Reconstruction Finance Corporation (1932): Aimed at providing financial support but criticized for being insufficient.

  • Franklin D. Roosevelt (FDR), a relatively unknown candidate at the time, proposed a "New Deal," indicating that governmental action was necessary to address the Great Depression’s challenges.

    • He emphasized restoring public confidence, starting with implementing a bank holiday to stem panic.

    • FDR advocated direct federal relief and implemented numerous programs under the New Deal, often referred to as "Alphabet Soup" Agencies for their acronymic names (e.g., AAA, FDIC, SEC, WPA).

  • The First New Deal (1933) laid groundwork for banking reforms, employment initiatives, and relief programs, leading to a Second New Deal (1935) aimed at long-term reforms such as Social Security and labor rights (Wagner Act).

Criticism of the New Deal and Political Opposition

  • FDR faced criticism from both liberal and conservative factions:

    • Liberals argued that New Deal measures were insufficient.

    • Conservatives labeled his policies as socialist upheavals against American self-reliance.

  • Prominent opposition figures included:

    • Huey Long: Proposed radical wealth redistribution with his "Share Our Wealth" initiative, promising pensions and income guarantees.

    • Father Charles E. Coughlin: A radio personality who initially supported the New Deal but later turned against FDR, espousing anti-Semitic views.

    • Francis Townsend: Advocated for a revolving pension plan, calling for higher government intervention for elder care.

  • In response to court challenges impacting New Deal initiatives, FDR proposed a "court-packing" scheme to expand the judiciary, though it faced significant backlash and ultimately failed.

  • The New Deal Coalition emerged, uniting lower-income groups, ethnic minorities, and the Southern Democrats. This coalition fundamentally shaped American politics into the 1960s, contributing to shifts in voter demographics and political affiliations.