Unit 7
Boom and Bust
A Resurgence of Nativism
• Because of the red scare- the fear that
communist would threaten freedom in the
United states
• Palmer raids- A. Mitchell palmer- started arresting suspected communist
Nativism
• Eugenics is a false(pseudo) science that deals
with the improvement of hereditary traits.
– Nativists thinking that white Protestants
from northern Europe who first came to
America were the superior stock.
• One of the biggest movements to restrict
immigration in the 1920’s came from the Ku
Klux Klan.
– After World War I, the Klan targeted
immigrants, Catholics, Jews and other
groups they believed did not represent
traditional American values
Ku Klux Klan restarted at Stone Mt
Ga. by William Simmons 1915
Immigration
• To control immigration congress passed the
Emergency Quota Act and national origins act
– The law set up a quota system.
– Discriminated against southern and
eastern Europe immigrants.
• These two laws caused a shortage in labor
– These Acts did not include natives of the
Western Hemisphere. More than 600,000
Mexicans arrived in the United States
between 1914 and the end of the 1920s.
New Morality
• New Morality stressed youth and personal
freedom
– In the family, the new morality focused on the
ideas of romance, pleasure, and friendship for a
successful marriage.
– Automobile played important part in new
morality.
• Flappers- New fashion that started in 20’s
– Women shortened their hair and wore silk
stockings.
– A flapper was a young, dramatic, stylish,
and unconventional woman. She smoked
cigarettes and drank liquor. She also
dressed in clothes considered too revealing
by many.
• Fundamentalism Movement – stressed the
teachings of the bible.
– Fundamentalist rejected the theory of
evolution and supported the creation
theory.
Flappers
• Scopes Monkey Trial- where Evolutionist and
Creationist collided
– John T. Scopes taught evolution in a Dayton,
Tennessee classroom. It was against the
law to teach evolution in Tenn.
– Clarence Darrow was Scopes lawyer, and
Williams Jennings Bryan was the prosecutor.
– Scopes was found Guilty for teaching
evolution in the classroom and had to pay
$100 fine.
– Conviction was later overturned
Clearance Darrow(left)/ William Jennings Bryan (right)
Unit 7
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•
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Boom and Bust Economy
Roaring 20’s
Great Depression
New Deal
Unit 7 Prohibition
• People started supporting Prohibition in early 1900’s
– People believed Prohibition would
• Reduce domestic violence
• Reduce unemployment
• Poverty
• 18th amendment took effect January 1920 – provided
for prohibition –no sale or consumption of alcohol
• Speakeasies- bars where you could buy alcohol
– Organized crime ran these bars.
– Alcohol imported from places like Canada and Caribbean.
– 21st amendment passed in 1933. Overturned the 18th.
Organized Crime
Cultural Innervations
• Many Americans in the 1920s had more money and
more leisure time than they ever had before.
– People watched Boxing and Baseball with leisure time
• Motion picture became popular. They had no sound
yet, music was provided during the showing.
• Radio and music also became popular
• Mass media was radio, movies, newspapers, and
magazines aimed at a broad, popular audience-helped to expand people’s view of the world. It helped
unify the nation and spread the new ideas of the time.
African American Culture
• Many African Americans was part of the
Great Migration. This was where blacks left
the south to go to the industrial north.
– Night clubs and music started to flourish in
northern cities like New York.
– Harlem was center the center for artistic
development, racial pride, and a feeling of
community. This was called the Harlem
Renaissance
– Langston Hughes (writer) , Louis Armstrong
introduced an improvisational form of jazz,
and Duke Ellington.
Harlem Renaissance Continued
• Like other African American musicians, Duke
Ellington got his start at the Cotton Club. This
was one of the most famous Harlem
nightspots.
• Blues- a soulful style of music that evolved
from African American spirituals.
• Tin Pan alley- group of music houses in New
York City where artists preformed their songs
– Irving Berlin- most famous artists in tin pan
alley
– White Christmas, God Bless America,
there’s no business like show business,
Louis Armstrong
African American Politics
• Population of African Americans increased in the
North.
– Voting blocs were established. African Americans in
Chicago elected Oscar DePriest, the first African American
representative in Congress from a Northern state.
• NAACP- lobbied against segregation, lynching, and
discrimination
• Marcus Garvey formed the Universal Negro
Improvement Association (UNIA)
– Advocating separation of the races.
– He urged African Americans to move to Liberia, Africa
Chapter 21
Presidential Politics
• Warren G. Harding elected president
in 1920
–He ran on the campaign slogan to
return to normalcy, or a return to
“normal” life after the war.
The New Rise of Industry
• Automobiles became an important part to
American life.
–Mass production –Henry Ford
perfected it
–Assembly Line (Henry Ford)- saved
time and money
• Model T
Video on the Automobile
• Airline industry
– Charles Lindbergh made a solo flight across the
Atlantic Ocean in the Spirit of St. Louis
• Commercial radio also became popular in the 1920s.
• National Broadcasting Company, Columbia Broadcasting System
Charles Lindbergh
Consumer Society
• Higher Wages led to increase buying power.
• Americans started buying items on credit.
(cars and furniture)
Farm Crisis
• Farmers did not prosper in the 1920.
• New technology increased production
• During WW1 farmers produced more food to
feed Europe
• Europe because of tariffs stopped buying
agriculture products from America.
• 1920’s Boll Weevil Stuck the south and
destroyed the cotton crop
Promoting Prosperity
• Harding and Coolidge both opposed govt.
regulation of businesses
– Secretary Andrew Mellon came up with supply-side
economics - He believed that as the economy grew,
Americans would earn more money and the
government would actually collect more taxes at the
lower rate than it would if the tax rates were kept
high.
– Herbert Hoover came up with cooperative
individualism- idea encouraged manufacturers and
distributors to form trade associations, which would
voluntarily share information with the government
Trade and Arm Control
– Most Americans after World War I favored
Isolationism.
– European allies had a hard time paying America
back for war debt
• The United States and 14 other nations signed
the Kellogg-Briand Pact-stated that all signing
nations agreed to abandon war and negotiate
disputes peacefully.
Chapter 22
• Caused of the depression
• Election of 1928
– Herbert Hoover (Rep)
• Supported prohibition
• Quaker
• Hoover wins in a landslide
– Alfred E. Smith (Dem)
• Roman Catholic (1st to be nominated for president)
• Opposed the idea of prohibition
Herbert Hoover / Alfred Smith
Roots of the Great Depression
• Causes of Great depression
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–
–
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1.Underconsumption
2.Speculation
3.Over production of manufactured goods
4. Installment plans- paid for items in monthly installments
• People had to stop buying items to pay for items already bought.
Sales slowed and production was cut. Because of this people were
laid off.
– Americans were not selling many goods to foreign countries
• Hawley-SmootTariff- raised taxes on imports. Other countries raised their tariffs on
American products. American products stopped being bought overseas because of this.
– Federal Reserve- they lowered interest rates which allowed for banks to give risky loans.
Lower interest rates led business leaders to believe the economy was still growing. They
borrowed more money to expand they industry.
• Stock market
– It experienced a bull market during the late 1920’s
– Speculation- investors were betting that the stock market
would continue to climb and then sell the stock quickly to
make money.
– Oct. 29, 1929 Black Tuesday- stock market crashed
• Banks
– Lent money to stock speculators
– invested depositors’ money in the stock market
– Stock market crash caused banks to lose money, and not
get paid back by speculators
Life during the Great Depression
• Banks failed, thousands of companies went out of
business, people lost homes and was unable to
provide food.
• People who lost homes built shantytownshomeless that built shacks on unused public
lands. Also known as Hoovervilles
• Hobos
• Midwest farmers stopped planting croups
because prices fell. Plains experienced a server
drought 1932. Plains became a dust bowl.
Hoovervilles
Dust bowl
Where did the dustbowl happen
at?
Dust Bowl
happened in
Great Plains
Why were people leaving the area
shown in the map?
Dust bowl
Escaping the Great Depression
• People went to the movies and watched
Cartoons. Walt Disney produced the 1st full
length cartoon.
• Americans listened to radio (lone Ranger)
• Writers John Steinbeck “The Grapes of
Wrath”-about people who left the dust bowl,and William Faulkner- wrote in a new style
called stream of consciousness- it is where the
characters thoughts are expressed.
Hoover Responds
• Hoover got a pledge from businesses owners
to keep factories open and stop cutting wages.
• Public works• Hoover believed deficit spending would delay
the recovery.
The angry American
• Hoover did not want to give direct relief to poor
families.
• 1932 crowds of people marched on Washington.
• Creditors foreclosed on a million farms between
1930-34
• Bonus Army- veterans of World War 1 who
wanted their bonus early.
– Bonus Army lived in Hoovervilles and solders were
sent in to clear out the bonus army.
Bonus Army
• 1932 presidential election
– Rep. Herbert Hoover
– Dem. Franklin D. Roosevelt
• New Deal- Roosevelt's programs for ending the Great depression.
• FDR
– He was Wealthy, educated at Harvard, Columbia law school,
contracted polio, secretary of war, Governor of (NY) . Roosevelt
depended on his wife Eleanor to keep his name in the forefront in the
New York Democratic Party (when had polio). Elected Pres. 1932.
• People were scared Roosevelt would get rid of the Gold standard.
• Because of this people went to banks to get money out of banks and
exchange it for gold.
• In 38 states, governors declared bank holidays.
• By 1933 4000 banks collapsed.
The First New Deal
•
1st Hundred days- congress passed 15 major laws to deal
with the economy (1st new Deal)
•
•
Roosevelt had advisors that disagreed with each other.
A bank holiday and special secession of congress was called.
– Emergency Banking Relief Act-federal officials would check the nation’s banks
and give licenses to those that were financially sound.
• Fireside chats- let people know what FDR was trying to
accomplish.
– 1st chat he told public it was safe to put money back in
banks.
• FDIC-Federal Deposit Insurance Company- provided govt.
insurance for bank deposits up to a certain amount.
• Securities and Exchanges Commission (SEC)- regulate stock
market and prevent fraud
The New Deal
Migrant Mother Photo
• This picture showed the despair people had
during the great depression
• She sold her tires to buy
food for her seven kids
Managing Farm and Industry
• Agricultural Adjustment Administration(AAA)Govt. would pay farmers not grow certain
crops and livestock
– Millions of acres took out of production
– Farmers received 1 billion in payments
– Surplus decreased and prices increased.
– Large commercial farmers benefited
• National Industrial Recovery Act (NIRA)
– Suspended anti-trust laws
– Voluntary rules for each business
– Set prices and minimum wage
– National Recovery Administration- ran the NIRA
– Businesses who sign agreement to abide by the
codes received signs displaying NRA symbol
– People encouraged only to by from these
businesses
Providing debt relief
• Home Owners’ Loan Corporation (HOLC)
– Bought mortgages from home owners behind on
payments
– Reconstructed loans with lower interest rates
• Farm Credit Administration (FCA)– Gave famers loans where they could keep their
land
Spending and Relief Programs
• Some advisors believed Roosevelt needed to
find a way to provide money to people.
– Civilian Conservation Corps (CCC 1933)
• Employed 18-25 year old men
• Planted trees, fought fires, and built
reservoirs
• Provided work for about 3 million men
Tennessee Valley Authority
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•
•
•
Control floods
20 dams were built
Employed 40,000 workers at one time
Provided cheap electricity to rural areas
Roosevelt and New Deal Political
cartoons
Challenges to the New Deal
–Huey Long (left)- believed the
government was not going far
enough. Wanted govt. to shift wealth
from the rich to the middle class and
poor.
–Redistribution of wealth
Second New Deal
• Works Progress Administration (WPA)
– 8.5 million workers
– Built highways, roads, public buildings parks
– murals
• Wagner Act– Guaranteed workers right to form unions
and collective bargaining
– Binding arbitration
– Made Unions increase
• CIO (Committee for industrial workers) Later became
Congress of Industrial Organizations.
Social Security Act
• Disability
• Retirement
• Unemployment
The New Deal Coalition
• Roosevelt included African Americans and
Women to positions in his administration.
– Francis Perkins- 1st women to a cabinet position
Secretary of Labor
• Supreme Court struck down many New Deal
Programs
– Roosevelt’s solution was court-packing.
• Interfering with separation of powers
• Southerners worried FDR would appoint
justices that would overturn segregation in the
south.
• Hurt FDR reputation
• Roosevelt cut spending and the economy
declined
• Two theories emerged to help the economy:
– Secretary of Treasury Henry Morgenthau wanted
to balance the budget and cut spending
– John Keynes (Keynesianism)- during a recession
govt. should spend a lot even go into debt.
• Legacy of the New deal
– The government became a broker state- a
mediator between two groups
– Safety net- safeguards and reliefs that
programs that protected average
Americans from an economic disaster.
– People now believed the govt. had a duty
to keep the safety net
– The new deal programs did not bring the
United States out of the depression. WWII
did