The Jazz Age & The Age Of Corruption, 1919=1929
AP United States History
Unit 7 A Reluctant Colossus, 1880-1939
Russian Revolution & Rise Of Communism
Results Of The Russian Revolution
• The Communists (Reds)
win the Revolution,
murder the Russian czar
and his family, and placed
all private property under
government control.
– Scares conservatives and
property owners
throughout the world.
Lenin pushes for a
worldwide revolution,
focusing on industrial
workers.
Russian Revolution & Rise Of Communism
Appeal Of Communism
• Social and economic
equality.
• Share in the means and
profits of production.
• Divided the
possessions of the
rich.
• Highly centralized
government meant to
benefit society.
Radical Activity In Post-World War I America
Centered Around Labor Unions
• Communists appointed
themselves as the
“champions of
workers.”
• Many issues fought for
by union leaders were
similar to Communist
goals.
• When a strike broke
out, people interpreted
as a Communistinspired conspiracy.
Radical Activity In Post-World War I America
Terrorism Increases
• Anarchists (those against
all forms of government)
attempt to kidnap, bomb, or
murder many American
leaders.
– Included John D. Rockefeller,
President Wilson, Supreme
Court Justice Oliver Wendell
Holmes, and Attorney
General A. Mitchell Palmer.
• Many believed that
anarchists and their
terrorist activities were
connected to the
Communists.
Radical Activity In Post-World War I America
Myths Increase To Scare Americans
• Belief was that all
radicals were either
immigrants or illegal
aliens.
• The enemy becomes
the lowly immigrant,
especially those of
Jewish, Russian,
Italian, or Slavic
heritage.
The Palmer Raids
Origins
• Many people wanted the
radicals suppressed.
– A witch-hunt begins to
track down and arrest
Communists and
anarchists.
• Enter A. Mitchell Palmer.
– August 1919, begins to
arrest people on
suspicion of being
Communist.
– Focused efforts on union
leaders and immigrants.
The Palmer Raids
Treatment Of Suspects
• Over 6,000 people
arrested.
– Many were not connected
to the radicals, but still
imprisoned.
– Most had no
communication with
friends or families for
weeks.
– Visitors of prisoners were
sometimes held as
prisoners after visits.
– Jammed into small, filthy
cells, beaten, and forced
to sign “confessions.”
Strikes Of 1919
Problems With Demobilization
• Government cancels military contracts.
• Industries begin to lay off workers.
• 4.5 million soldiers were returning and needed
jobs.
• Women were forced to leave their jobs to be
replaced by men.
• Wartime shortages left prices high, but wages
remained low.
• Conversion to consumerism was slow and would
not come until 1921.
• Employees were tired of their treatment and
wanted change.
– 1,000 strikes between 1919 to 1923.
Strikes Of 1919
Boston Police Strike, Sept. 1919
• Police officers want to
form a union for better
pay and working
conditions.
– Boston police
commissioner will not
allow it.
Strikes Of 1919
Boston Police Strike, Sept. 1919
• Nearly 75% of the
police force would
strike as a result.
– Riots and mobs in the
streets leads
Massachusetts Governor
Calvin Coolidge to send
in the National Guard.
– Officers agree to return to
work, but are locked out
by the police
commissioner.
– Returning war veterans
were hired as
replacements.
Strikes Of 1919
Boston Police Strike, Sept. 1919
• Coolidge’s reaction.
– Sides with the
commissioner.
– States that “there is
no right to strike
against the public
safety by anybody,
anywhere, anytime.”
Strikes Of 1919
Pittsburgh Steel Strike, Sept. 1919
• 365,000 steelworkers
in Western
Pennsylvania walk
off the job.
– Demand union
recognition, an
increase in pay, less
hours, and better
working conditions.
Strikes Of 1919
Pittsburgh Steel Strike, Sept. 1919
• U.S. Steel’s
strikebreaking
techniques.
– Strikers were jailed,
beaten, or shot by
the police.
– African-Americans
and Mexicans were
brought in to work,
leading to racial
tensions in the area.
Economic Boom
Impact Of World War I
• America emerges as an
economic powerhouse.
– Was physically
untouched by the war,
unlike their main
competitors in Europe.
– Both the Allies and
Central powers owed the
United States money.
– Workers and soldiers
were forced to save due
to rationing. Leads to
having money to invest in
businesses and spend on
new consumer goods.
Economic Boom
Increased Productivity & Profits
• Business
management
becomes a science
studied at
universities.
– Leads to more
competent owners,
managers, and
workers.
Economic Boom
Increased Productivity & Profits
• Assembly line.
– Created by Henry Ford for
the automobile industry,
would be adopted by other
industries.
– Ford’s ideal was to train
workers to do one job that
they could perform at a
rapid pace all day.
– Leads to lower costs,
increased productivity,
lower consumer prices,
increased demand, and
profits galore.
Economic Boom
Increased Productivity & Profits
• Energy
technologies.
– Increased use and
efficiency of
products utilizing
oil and electricity.
Economic Boom
Increased Productivity & Profits
• Government policies.
– Congress and the President are both
Republican.
• Believed that the “business of America is business.”
• Traditionally laissez-faire economics domestically,
protectionist internationally.
– Most of the big money men were in first place.
• Favored the growth of big business.
– Raised tariffs to protect American business.
– Cut taxes on corporations and individuals.
– Did little to enforce antitrust laws.
Rise Of Growth Industries
Defined
• A key industry whose
rapid expansion
contributes to the
growth of other sectors
of the economy.
– In the 1920s, included
automobiles,
construction, real estate,
appliances, electric
power, telephone and
radio companies, and
chemicals.
Consumer Goods
Defined
• Goods that people
use in their daily
lives and that can
be a measure of
standard of living.
– Leads to an increase
in demand for new
goods, which in turn
leads to increases in
production, jobs,
and profits.
Impact Of The Economic Boom
Impact
• Real income rises 30%.
• Unemployment fell to its lowest level in years.
• Increased research in technology, energy, and
chemicals.
• Mass production lessens the value of skilled
workers.
• More people are investing.
– A double-edged sword.
• Good because more money is available for economic expansion.
• Bad because people are looking to get rich quick, which leads to
the practice of speculation (betting that a company or industry
will do well in the immediate future).
• People begin to borrow money from banks to play with on the
stock market.
Business Mergers Increase
Why???
• Allowed for more
business mergers by
relaxing antitrust
enforcement.
• Key example: the
automobile industry.
– 181 companies existed in
1903. By 1930, only 11
existed through mergers,
buyouts, and bankruptcies.
– The “Big Three” (Ford,
Chrysler, and General
Motors) produced over 85%
of all vehicles.
Business Mergers Increase
Long-Term Consequences Of Mergers
• Reduced competition leads to an increase in
prices.
• Illegal practices increase, including
collaboration and collusion.
– With only a few companies controlling an industry, it
makes it easier for the big companies to work
together to set prices, incentives, and production
levels to ensure the greatest profit.
• Worker independence.
– By 1929, over half of American wage earners were
working for companies considered to be large
(employing over 250 people).
Business Mergers Increase
Little Resistance To Business Practices
• Consumers are
happy with their
new products and
the large
companies keep
prices relatively
reasonable.
Business Mergers Increase
Little Resistance To Business Practices
• Justice Department was busy.
– More worried about enforcing Prohibition.
Business Mergers Increase
Little Resistance To Business Practices
• Supreme Court & “the
rule of reason.”
– The question was not whether
a merger resulted in the
outlawed restraint of trade, but
whether the Supreme Court
thought the restraint was
reasonable or unreasonable.
– Will lead the Supreme Court to
take little action against big
business.
– In the Age of Corruption, even
Supreme Court judges could
be bought.
Warren G. Harding, 1921-1923
Background
• Not a very sophisticated
person or politician,
showing his ignorance
during his campaign.
– Coined the term “normalcy”
when referring to American
society and life before the
Great War. Really meant to say
“normality.”
• Lesser officials were his
friends from Ohio, who took
advantage of his friendship
for their own personal gain.
Known as the “Ohio Gang.”
Warren G. Harding, 1921-1923
International Normalcy
• America steps out of the spotlight and
returns to isolationism.
American Isolationism
http://images.google.com/imgres?imgurl=http://web.mac.com/gileshill/iWe
b/history%2520at%2520hand/GCSE%2520Podcasts/GCSE%2520Podcasts
Warren G. Harding, 1921-1923
Return Of The Scandals
• Teapot Dome Scandal.
– Involved Secretary of the
Interior Albert Fall.
– Actively accepted bribes
for granting oil leases to
private companies.
Warren G. Harding, 1921-1923
Return Of The Scandals
• Veterans Bureau
Chief Charles Forbes.
– Defrauded the
government and
veterans of over $200
million by demanding
kickbacks.
– Took supplies meant
for veterans and sold
them at reduced
prices, making a profit
for himself.
Warren G. Harding, 1921-1923
Return Of The Scandals
• Attorney General
Harry Daugherty.
– Accepted bribes
from organized
crime and agreed
not to prosecute
certain trials.
Warren G. Harding, 1921-1923
Death Of Harding
• Died suddenly in August
1923 while traveling through
the West.
• Suffered a heart attack.
– Was traveling with the
Surgeon General (another
corrupt friend) who
diagnosed the condition as
food poisoning and told
Harding all he needed was
rest.
– Less than an hour later,
Harding was dead.
Calvin Coolidge, 1923-1929
Background
• Former governor of
Massachusetts,
instrumental in ending
the Boston Police force
strike.
• “Silent Cal.”
– Nickname, gained for his quiet
demeanor and lack of public
speaking appearances.
– “If you don’t say anything,
you won’t be called on to
repeat it.”
Calvin Coolidge, 1923-1929
Philosophy
• “The business of America is
business.”
– Oversaw one of the most
tremendous eras of prosperity in
American history.
– Believed in a limited government
that stood aside and allowed
businesses and people to do what
was needed.
– Cut government spending to the
bone.
– Vetoed bills helping veterans and
struggling farmers, leading to
future problems for presidents
Hoover and Roosevelt.
“Peace Without A Sword”
Resurgence Of Isolationism
• Many Americans wanted
nothing to do with European
affairs.
– Would result in America
withdrawing any consideration in
the League of Nations and placing
major restrictions on immigration.
• Were disillusioned by World
War I.
– Known as the Lost Generation.
– The bloodiness and senseless
brutality of the Great War
convinced millions to follow
Washington’s advice to “steer
clear” of “foreign entanglements.”
“Peace Without A Sword”
Business Needs Come First
• Isolationism comes
only in the form of
military involvement
and political alliance,
not in economics.
– Still needed to be
involved with the world.
– Wanted to bring
“stability” to backward
nations, especially in
Latin America.
– Would further stimulate
the American economy.
“Peace Without A Sword”
Kellogg-Briand Pact
• France wanted to collect
allies in case of a
resurgence of German
power.
• American isolationists
wanted a permanent
agreement to never use war
as a foreign policy tool.
– Both diplomats knew that the
pact was meaningless, but
would gain political support
at home.
Harlem Renaissance
Writers
• Expressed a range
of emotions from
bitterness to joy
and hope.
• Included Langston
Hughes, Claude
McKay, and James
Weldon Johnston.
Funeral Armband
http://www.executedtoday.com/images/Sacco_Vanzetti_funeral_armband.jpg