USA case study

Units:

  • Unit 1: How far did the USA’s economy boom in the 1920s?

  • Unit 2: How far did US society change in the 1920s?

  • Unit 3: How far was the USA in the 1920s an intolerant society?

  • Unit 4: What were the causes and consequences of the Wall Street Crash and the Great Depression?

  • Unit 5: How successful was the New Deal?

Unit 1: How far did the USA’s economy boom in the 1920s?

Economic boom: The dynamic growth of the US economy in the 1920s

Reasons for this economic boom:

F- First world war

R- Resources

E- Electricity

E- Economic policies

M- Mass production

A- Automobile industry

C- Consumerism

S- State of mind

F- First World War:

Trade:

  • Europe needed goods to rebuild and feed its people

  • The USA supplied European allies with food, raw materials and arms

  • While European nations fought, the US took their overseas markets

  • The US overtook Germany as the world leader in chemicals and fertilizers

  • US banks lent huge sums of money to fighting European nations,

    repaid with interest as their economies recovered in the 1920s

Technology changes:

  • 1920s USA led the world in mechanization, plastics & aircraft design

  • Automobiles became a huge industry

  • Technological advancements in finance, such as telegraphs for real-time stock information, encouraged investment

  • New technology led to mass production

R- Resources

  • The USA was rich in natural resources and raw materials

  • By 1920 it was the world’s leading producer of coal, steel, and oil

  • American agriculture was the most productive in the world

E- Electricity

  • Electricity consumption more than doubled in the 1920s

  • By 1929 most urban homes had electricity

  • Electricity powered new mass-production methods in factories

  • Production of electrical appliances (radios, telephones) boomed

E- Economic policies

Laissez Faire policies:

  • The belief that government should interfere in business as little as possible

  • Giving business ‘a free hand’ boosts employment, wages, profits

  • Encouraged by American culture of ‘rugged individualism’: belief people achieved success through independence and hard work

Taxation:

  • Low-income tax aimed to encourage spending on US goods and investment in US business

  • After the 1926 Revenue Act, 0.75% of pop. paid 94% of USA’s tax

Tariffs:

  • Protectionist policy of making imported goods more expensive to encourage consumers to buy domestic (US) products

  • 1922 Fordney-McCumber Tariff protected US-produced food

M- Mass production

  • Developed by Henry Ford after 1913, it revolutionized production

  • Ford showed the speed and low costs that could be achieved by manufacturing standard models on an assembly line

  • In 1913, the Ford factory in Detroit produced a Model T car every 3 minutes; by 1920s, it made one every 10 seconds

  • By 1925, a Model T cost $290 – 3 months wages for a worker

  • Soon A. lines were used to mass-produce other items, making a huge variety of consumer goods affordable to ordinary people

A- Automobile industry

  • Henry Ford was leading figure in the USA’s automobile boom

  • Designed the Model T as an affordable, reliable, basic car for mass-ownership: available in ‘any colour as long as it’s black’

  • By mid 1920s, one of every two cars sold in USA was a Model T

  • By 1920s, the automobile industry was the USA’s largest, employing hundreds of thousands

  • Auto-related industries boomed: 80% of the USA’s rubber and 75% of the USA’s glass production went to the car industry

  • 1 car to every 5 people (vs 1:43 in Britain, 1:7000 in USSR!)

  • Distances shrank as people could travel further than before

  • Rural communities became less isolated

  • People spent more leisure time traveling across the USA

  • Suburbs grew outside the cities as people could drive to work

C- Consumerism

  • Marketing started becoming big

  • Previous decades valued thrift and saving money: 1920s made spending money a virtue and a part of American identity

  • ‘Buy now pay later’ credit schemes removed stigma from debt • By 1927, 75% of all household goods were bought on credit

  • Advertisers developed sophisticated techniques to persuade consumers to buy products

  • Radio and poster ads used celebrity endorsements, slogans and sex appeal to sell freedom, glamour and romance

  • Mail-order catalogues brought consumer goods to rural USA

  • Between 1920 and 1930, sales of cars increased from 9m to 26m; sales of radios from 60,000 to 10m

S- State of mind

  • A new attitude of confidence led Americans to believe that the USA’s prosperity and wealth would continue to grow

  • Business people had the confidence to invest in new industries and products; consumers had confidence to buy, often on credit

  • • More and more Americans bought shares on the stock market, believing that share values would continue to rise

  • By 1929, 20m Americans were shareowners

Who did not benefit from the economic boom?

C- Coal industry

A- Agriculture

T- Textile industry

R- Railroad workers

I- Immigrants

B- Black Americans

C- Coal industry

  • Overproduction of coal led to falling prices and profits from coal mines

  • Demand for coal fell due to new power sources: oil, electricity

  • Many mines were closed down and wages were cut; large miners’ strikes (600,000 went on strike for four months in 1922) failed to improve working conditions

A- Agriculture:

  • Farmers struggled against competition from highly efficient wheat producers in Canada

  • Improved machinery like combine harvesters made US farming too efficient: too much was produced, leaving a surplus that could not be sold

  • Prices plummeted as farmers tried to sell their surpluses

  • Europe imported less food from USA after WW1, partly as it produced enough, partly in response to US tariffs (e.g. Fordney-McCumber)

  • Hundreds of thousands of farmers went bankrupt (600,000 in 1924 alone)

  • Unable to keep up mortgage repayments, many farmers were forced off the land: either evicted or selling their farms to move to cities

T- Textile industry

  • Suffered competition from new artificial competitors, e.g. rayon, a man-made fiber cheaper to produce than wool, cotton of silk

  • Changes in fashion, e.g. shorter skirts and dresses, reduced demand for textiles

  • Mill owners kept wages low by hiring women and children in poor conditions

R- Railroad workers

  • Declined due to huge growth in car ownership and the national road network

I- Immigrants

  • Faced discrimination and low wages, as immigration provided a steady supply of cheap labour from Europe and Asia

  • Many worked in boom laboring construction industry, but wages rose only 4% in the 1920s

  • Unemployment remained high among immigrant communities

  • Government legislation put quotas on immigration (see sheet 2) to limit new arrivals

B- Black Americans

  • 85% of Black Americans lived in the southern states; most worked as farm labourers or sharecroppers (had to pay a share of their crops to the landowner)

  • The downturn in US agriculture: 750,000 black Americans lost their jobs in the 1920s

  • Southern blacks suffered discrimination, segregation, and the fear of lynching

  • Many migrated to northern cities (NY, Chicago, Detroit) in search of opportunity, but were still treated as second-class citizens and took low-paid, menial jobs

  • Many employers had black employment quotas or ‘whites-only’ policies

  • Most blacks in the north lived in overcrowded ‘ghettos’ like New York’s Harlem

  • Unit 2: How far did US society change in the 1920s?

  1. Urbanization

    • • By the 1920s, for the first time more Americans lived in towns/cities than in rural areas

    • Overseas immigrants & rural Americans flooded to cities like New York and Chicago in search of opportunities and adventure

    • Cities became melting pots of cultures as immigrants from Europe and other regions settled in urban areas.

    • Cities had more job opportunities so a lot of people started moving

  2. Women

    • Politics

      • Gains:

      • In 1924, 4 Nellie Taloe Ross of Wyoming became first woman to be elected governor of a state

      • In the year 1920, women got the right to vote in the 19th amendment

      • Limitations:

      • Unfortunately, men still dominated politics

    • Employment

      • Gains:

      • By 1929 there were 10m women in work – 24% more than in 1920

      • More women took ‘white-collar’ jobs (librarians, teachers, clerks,

        secretaries, telephone operators, shop assistants)

      • Because of this, women started gaining independence

      • Limitations:

      • Most women remained in unskilled jobs and paid less than men

      • Supreme Court blocked attempts to set female minimum wage

      • Only 4% of university professors were women; medical schools allocated only 5% of places to women

    • Social changes:

      • Gains:

      • Many women became more socially independent

      • Access to cars gave women mobility and freedom of travel

      • More women smoked, drank and danced in clubs/speakeasies

      • Time-saving consumer goods such as vacuum cleaners and washing machines freed up time for careers or leisure time

      • Women’s fashion became more daring and female beauty became a multi-million-dollar industry

      • The growing use of birth control led to lower birth rates; having fewer children allowed women more time for careers or social lives

      • Financially independent women were less likely to stay in unhappy marriages: divorce rates doubled from 1914 to 1929

      • Flappers:

      • Young, liberated, urban women who challenged traditional attitudes and embraced new freedoms

      • APPEARANCE: short hair, make-up, short dresses, bright clothes

      • ACTIVITIES: danced, drank, and smoked in speakeasies and jazz clubs; drove cars and motorcycles

      • Limitations:

      • These social changes were only enjoyed by urban, affluent women who had financial independence, car access, etc.

      • Most women in rural areas, and many in cities, lived traditional lives with traditional values of religion and family

      • Flappers were a minority and an extreme example of the 1920s changes; being a flapper was a phase and many ‘settled down’

      • Conservative Americans, particularly in rural areas, found changes to women’s lifestyles shocking

      • Religious Americans saw women’s sexual liberation as sinful and founded Anti-Flirt Leagues to protest the changes

      • Flappers demonized as promiscuous, shallow money-grabbers

  3. Automobiles

    • Gains:

    • Cars gave Americans more freedom to travel for work & leisure: sports events, shopping trips, beach holidays, picnics

    • • Young Americans could escape from their parents’ ‘moral gaze’

    • Women with cars gained more freedom and independence

    • Limitations:

    • Conservative Americans feared that automobiles were causing a decline in moral standards and making crime easier

  4. Entertainment

    • Jazz

      • Gains:

      • African-American music that became popular in the 1920s

      • Popularity spread to young white – as well as black – Americans

      • This led to the popularity of dances such as the Charleston

      • Was played in speakeasies and clubs such as NY’s Cotton Club

      • The explosion of jazz gave the 1920s the name: ‘the Jazz Age’

      • Jazz stars included Louis Armstrong and Duke Ellington • The audience was 100,000 and the box office take was $2.5 million

      • One of few areas where black Americans achieved fame/success

      • Limitations:

      • Conservative Americans thought jazz was too loose and sexual, causing decline in moral standards

      • Racism played a role, as most stars were black

    • Movies

      • Gains:

      • Cinema became a nationwide craze, going to the movies was a central part of American life.

      • LA suburb of Hollywood became the centre of the US film industry

      • Films were silent until the first ‘talkie’ (‘The Jazz Singer’) in 1927

      • By end of 1920s 20,000 cinemas; 100 million tickets sold per week

      • The 1920s created a new form of celebrity: the film star

      • Tabloid journalism developed to feed hunger for film star news

      • Mary Pickford: Silent movie legend; ‘America’s sweetheart’

      • Clara Bow: Flirtatious flapper known as ‘the It-girl’

      • Charlie Chaplin: Comedy star loved for his ‘tramp’ character

      • Rudolph Valentino: First male star to be sold on sex appeal

      • Limitations:

      • • Films changed public views on morality by selling sex, romance and

        female independence. Hollywood scandals were common.

      • Conservative Americans feared threat to traditional values

      • 1930 Hays Code regulated morality in films: no screen nudity,

        lengthy kisses, or positive portrayal of adultery

    • Sport:

      • The 1920s were a ’golden age’ of sport: baseball, boxing, football, golf and tennis became nationwide crazes

      • Participation in sports increased as cities constructed swimming

        pools, sports pitches, and stadia

      • COST: more disposable income & affordable tickets (econ. boom)

      • STARS: attraction of sports stars who became national celebrities

        1 Jazz

      • RADIO: broadcasted sporting events to millions of listeners

      • Sports stars were idolized for their courage, heroism and strength

      • Stars like Babe Ruth (baseball), Jack Depmsey (boxing) rose from humble origins to become sporting heroes

    • Radio

      • Radio revolutionized entertainment by bringing music, sporting

        events and celebrity news to a mass-audience

      • The first radio station KDKA was set up in 1920. By 1930 there

        were more than 600 stations in the USA

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