The USA in 1919-1941 Isolationism Isolationism is the idea that America should not involve itself in the affairs of other countries It came about as a result of over 100 thousand American deaths in WW1. Involvement without commitment - "advantages without obligations" -No permanent, entangling alliances -Keep U.S sovereign, free, at peace. Emphasis on legalism, not force - a "law bound" world of Great Powers keeping order. The "Economy Boom" in the 1920's The economic boom resulted due to various reasons: Invention and innovation Advance in chemical and synthetics like rayon an Bakelite (a form of plastics) widespread availability of electricity (widely availability of consumer good like radios, washing machine, vacuum cleaners and refrigerator) Including an advance in technology. Mass production Assembly line Used by Henry Ford to produce car. Henry Ford’s advances in assembly-line efficiency created a truly affordable automobile, making car ownership a possibility for many Americans. Used in other industries as well Led to a fall in price Buying on Credit: The expansion of credit in the 1920s allowed for the sale of more consumer goods and put automobiles within reach of average Americans. For Example- individuals who could not afford to purchase a car at full price could pay for that car over time -- with interest, of course! Republican Policies laissez-faire policies favourable to industry (govt favoured nonintervention) Taxation was kept low and high import tariff was introduced (to protect against imports) Problems in the Economic Boom Discrimination Black Americans moved north to work in lowest paid sector. Ethnic minorities were generally paid lower wages than their colleagues. Farmers were already facing lower incomes, with black farmers earning even less Segregation Black people were segregated into slum areas such as Harlem in New York. Overall racial discrimination was high Jazz Originated from African American community in the south Young white American found it appealing Cinema Provided opportunities to escape from the daily grind Many new stars were created (Charlie Chaplin/ Rudolph Valentino Films corrupted public morality Agriculture Over production (no exportation) so the price fell Farmers borrowed from banks but as product prices fell, they couldn’t repay the loan and their properties were seized by bank Many European countries wouldn’t take American farm product due to high tariffs on imports Crops were lost to pest People migrated to city to work in factory Car -·A car gave Americans the freedom of movements (visit clubs , cinemas and restaurants) ·- Helped open up the suburbs. Entertainment Spent their wealth on entertainment - Women’s lives were much freer. This was decade of short skirts, make-up, bobbed hair , smoking in public and going out without chaperone Automobiles Cycle of prosperity Consumer Goods/ Credit Entertainment Stock Market Sky Scapers Changing role of american Women in 1920 Politics Got the vote in most of the states - They made up to 50% or more of the electorate Work Number of women in employment increased by 10% (10mill) by 1929. Office and manufacture work increased Preferred women more than men Underpaid comparing to men Dress Corset were abandoned Shortskirts and dress were often sleeveless New fashion materials such as rayons Promoted self expression and greater women’s movements Lifestyle Women began smoking , drinking in public Chaperon is no longer required Drove cars Short hair and make up became symbols of freedom Divorce rate increased from100tho (1914) – 250tho (1929) Prohibition What was Prohibition? Prohibition was a period of time between Jan. 1920 December 1935 when it was banned to make, sell or transport alcoholic drinks in the USA. During the 1980's, TEMPERANCE, or not drinking alcohol, was common among christians, especially in rural areas Why was prohibition induced? It was claimed that alcohol caused social problems such poverty, crime, violent and ill health. Some believed grain is better used for making bread It was seen as opportunity to pick up votes for some politicians Who were supporting alcohol prohibition? Anti Saloon league and the women’s temperance Union campaigners suggesting America will be a better place without it The Protestant Church believing alcohol brought a decline in moral standards and family life in a big cities. Industrialist (Rock Feller) says prohibition will reduce the absenteeism and promote hard work. What were the impact of the alcohol prohibition? Alcohol consumers will be seen as the unpatriotic action as most of the brewer company belonged to Germans Undesired effect made alcohol more attractive . Illegal bars called “speakeasies’ became common. Its believed that by 1929, New York had over illegal drinking bars Some people tried to make their own alcohol called “moonshine’ which led to many death case. Occurance of illegal trade made large of money. “Bootleg” was smuggled from West Indies and whisky from Canada. Prohibition boosted crimes. Organised gangs control and manufacture alcohol. They bribed policemen and govt. officials. Incident happened ( Valentines massacre in 1929 when gang member of Al-Capone were murdered) Opportunity and Repeal -1930’s – prohibition failed - Netizens said the money better be spend in creating job for the unemployed . - It is also could be made from imposing high taxes and duties on alcohol. - When Roosevelt came, he supported the proposal for Prohibition to repeal. It was ended in December 1933. How Far was speculation responsible for the wall street crash? Impacts of the wall street crash Economy The share price did not stop falling for 3 years Businesses and bank went bust Businesses had to reduce their operation, cutting down production, wages and workers. Less money means ppl couldn’t afford to buy goods By 1933 the economy was producing only 20% of what it had in 1929 Social Workforce – 1 in 4 was out job and no welfare benefits (rent and mortgages needs to be paid) Homeless – Many faced eviction and became homeless. Many constructed tent and huts out scraps in towns . It is called (Hoovervilles) Queuing - after the food charities Bonus marchers – War veteran demanded for a war service bonus denied by congress. They set up camp opposite white house. For a peaceful protest, President Hoover thought they were threat and launched attack to destroy their camp resulting 2 death and more than 1000 were injured Overproduction & Underconsumption Before 1929, American industrial production seemed to parallel the course of the stock market: it kept going up. –Consumer demand for goods was very high after WWI. –Newly invented machines allowed U.S. factories to produce more goods in less time. –American industrialists believed in unrestricted capitalism and unrestricted growth (facilities expanded, increased production, flooded the market with goods) •By 1929, many companies had more plants than they actually needed, and the market was saturated with goods that few Americans could afford to buy Under-consumption •During the 1920s, farmers borrowed heavily from banks to pay for new, technologically advanced equipment. –As farmers failed to sell their surplus crops, they became unable to repay their bank loans, including their mortgages. –As a result, many farmers defaulted on their loans and some lost their farms due to bank foreclosures •Farmers situations grew worse leading to the Dust Bowl Coming of the great depression During the 1920s, many Americans enjoyed what seemed like an endless era of prosperity. But in 1929, the stock market crashed. World wars loans. Declining trade. 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. Economic historians usually attribute the start of the Great Depression to the sudden devastating collapse of US stock market prices on October 29, 1929, known as Black Tuesday. By mid-1930, interest rates had dropped to low levels, but expected deflation and the continuing reluctance of people to borrow meant that consumer spending and investment were depressed. By May 1930, automobile sales had declined to below the levels of 1928. Prices in general began to decline, although wages held steady in 1930; but then a deflationary spiral started in 1931. Conditions were worse in farming areas, where commodity prices plunged, and in mining and logging areas, where unemployment was high and there were few other jobs.
