Ok here are my notes on the Roaring 20s! They are quite long so good luck xx
KEY ISSUE 1: HOW AND WHY DID THE USA ACHIEVE PROSPERITY?
Isolationism
· Dislike of old empires· Immigration Problems· Dislike of TOV/Cost of the war· Problems with Congress- Wilson wouldn’t compromise terms of LoN· The Red Scare- fear of Communism from Eastern Europe and USSR
1921 Quota Act was passed, limiting immigration to 357000 every year.
1924 National Origins Act reduced this further, to 154000 per year.
Tariff Policy
By 1920, USA supplied 20% of the world’s petrol, 78% of grain and 40% of iron. This meant they could afford to put a high tariff on foreign goods.
Fordney McCumber Tariff (1922): 40%-400% tax on goods going into the USA, so people could only afford US products, therefore more US trade was drummed up. This is called protectionism and was instigated by President Harding. Principles of the tariff: Scientic tariff (if wages in a country are lower, the tariff was higher), and American Selling Price (tariffs were calculated using the US selling price not theselling cost elsewhere)
However other countries retaliated with their own tariffs making it harder for the US to get back into the world market after the crash.
Mass Production
Ford and the Motor Industry:· Ford ‘Model T’ Nicknamed Tin Lizzie· Cost $1200 in 1909 but just $295 in 1928 due to mass production· Ford could produce more than one car a minute· Parts were standardised to bring cost down and an assembly line was used so fewer skilled workers were used too
This springboards other industries in the cycle of prosperity· 1.7 million Model Ts were produced
This industry used 20% of the USA’s steel and 80% of its rubber.By 1929, 7 billion gallons of petrol were being used peryear, and 81,000 people were working in the same factory.
New consumer goods:· USA became electrified with a national grid- 70%of homes had electricity by 1927· 25 million cars and 25 million telephones in theUSA by 1929· 10 million radios in USA by 1929· Advertising created demand.
Hire Purchase
Buy now, pay later: people can afford what they want. 6/10 cars were bought on hire purchase.
The Republican government had a policy called ‘laissez-faire’meaning they interfered little with the US market, and kept taxes low to ensure speculation on the stock market.
This meant lots of people bought shares in companies: they could then be sold on for a bigger price.This caused a huge economic boom: the US’s gross interestgrew from $78bn to $103bn between 1919 and 1920 alone.
Entertainment·
Sport: Called the ‘golden age of sport’ e.g.Bake Ruth earned $70,000 a year.·
Fashion and Flappers: became acceptable for women to smoke and drink in public, dress became shorter and lighter and corsets were abandoned, women could bob their hair and wear visible makeup,dances such as the Charleston became popular, vote gained for women in 1920·
Cinema: MGM and Paramount examples of key studios, silent films popular till the 70s, Greta Garbo was a film star who gave her last interview in 1927 but was still worth $55 million at the time of her death
Jazz Age: Sax, trumpet vibraphone etc., seen as ‘black’ music, was conceived in New Orleans, popularised by radios and clubs.
Buildings: Art Deco became popular; the Empire State was built in 1929 and was 103 storeys.
KEY ISSUE 2: HOW FAR WAS THE USA A DIVIDED SOCIETY?
Rich v Poor
Black workers: ¾ million unemployed
Older industries suffered e.g. railways with the motor car boom, 1928 strike in N. Carolina due to coal workers earning $18 fora 70 hour week when $45 was the living wage· 42% of people lived under the poverty line, 3-4%of people unemployed
Farmers: industry dropped dramatically, worth$22bn in 1919 and down to $13bn in 1928 due to the loss of the European market,competition from Canada, overproduction due to mechanisation
Immigrants faced discrimination e.g. Sacco andVanzetti (see below)
Race
Everyone had to read English, Asian Immigrants were banned and everyone was charged $8 for entry. Immigrants were ‘Americanized’.
Sacco and Vanzetti: 15th April 1920,Fred Parmenter (paymaster at South Braintree shoe factory) was shot, Sacco and Vanzetti, 2 Italian Anarchists, were arrested on 5th May 1920 for the crime, found guilty and sentenced to death. Many people protested this but after appeals they were both electrocuted in 1927.
The KKK had its second wave- the film ‘Birth ofa Nation’ led to George Simmonds reviving it in Georgia. In 1925 5 million people nationally were in the KKK and 16 senators were elected with the Klan’s backing. 1/3 white Indiana men was a part of the KKK. It was so popular as it was a ‘pro-Christian’ group in a time of changing morals and there was a wave of racism and anti-Semitism due to immigration. The decline was due to the murder of a girl by the Indiana KKK leader, so in 1930 there were only 45,000 members nationally.
A WASP is a white Anglo-Saxon Protestant
Prohibition
Volstead Act: January 1920, banned manufacture, sale and transportation of alcohol. This was because of pressure from groups like the Anti-Saloon League, and it was seen to be funding German beer makers to drink
Effects included speakeasies (illegal bars in backrooms etc., 30,000 in NYC alone, actually doubled number of bars than before prohibition!), moonshine (home made alcohol: this caused deaths as it was badly made, 700mn gallons of beer were made per year), bootlegging (smuggling from Canada/West Indies), organised crime and gangsters such as…
Al Capone: A gangster who made money from bootlegging and alcohol provision. By 1927 he was earning $60mn a yearbootlegging alone, and had 700 men under his control, responsible for 500+murders, but began to lose popularity after 14th February 1929(Valentine’s Day Massacre) where 7 members of a rival gang were killed.Eventually imprisoned for income-tax evasion
Prohibition repealed in February 1933 because it was not working. This was due to the fact only 1500 people were enforcing the law, they had a low pay so were easy to bribe, America had too many boundaries to stop bootlegging and many didn’t like prohibition. $2,000mn worth of business went from brewers and bars to gangsters.
KEY ISSUE 3: WHY DID THE US STOCK EXCHANGE CRASH?
Problems of the 20s· 1926: collapse of land prices in Florida,overproduction, too many unsupported small banks, too much speculation of the stock market, large loans given to Europe had to be recalled causing issues over there (particularly in e.g. Germany)· Between 1924-9 shares rose in value 5 times,rising beyond what the firms were actually worth· Many people took out 90% loans to buy shares-$9bn in 1929· There was corruption and insider trading between banks, and then a forecasted crash caused panic.
Crash: Tuesday 29th October 1929: 16million shares sold, and no buyers. ‘Black Tuesday’.
Consequences of the crash
Hard to start selling due to tariffs abroad; increased starvation: 238 people admitted to hospital starving in 1931, decreased trade-$10bn in 1929 and $3bn in 1932· 5000 banks went bankrupt and 20,000 business closed down in 1932, 25% of Americans unemployed by 1933, wages fell by 60%,people lived in shanty towns called ‘Hoovervilles’· ¼ million had their homes repossessed.
1929- 2 million unemployed. 1933- 12 million unemployed.