USA 1918-41 Flashcards
Reasons for the economic boom in the 1920s
Mass production
- Henry Ford introduced the assembly line
- Model T ($750 → $250)
- Workers at Ford were paid $5 a day which was much higher than average
• Worker’s benefits
- wages increased by 25%
- 48 → 44 hrs
Consumerism increased
• Hire purchase
- People could buy goods by paying a small deposit then monthly instalments, meaning more people can afford expenisve goods
- 60% of cars and 80% of radios bought with hire purchase
• Advertising
- billboards, magazines, newspapers, shop windows and cinemas
- on the radio
Sears and roebuck popular mail catalog (1/3 of Americans made hire purchases from it)
2 billion spent on advertising in 20s
First World War
- Europe had to buy from the USA, so there was a ONE WAY TRADE.
- USA gave loans with interest to Europeans, so they profited from the war.
- The USA took over many markets, previously supplied by Europe.
Changes in society - the leisure industry
Jazz became much more popular
Came from the South, esp. black Americans eg Louis Armstrong
Cinemas built in every city and town across USA
The changing position of women
Women in all states could now vote, in 1920
Domestic work was made easier because of new electrical goods (e.g vacuum cleaner and washing machine)
Traditional rules of behaviour of women started to change in urban areas
Women in wartime worked in factories, so they could have the same jobs as men, giving them independence
In 1929, 10 million women had jobs, a 24% increase since 1920.
Women became targets of advertising now that they became important consumers
Red Scare and Palmer Raids
- Strong opposition from the government
- Palmer Raids
- raided addresses, incl. residences, of suspiscious political radical
- 6000 arrested, 600 deported
- Used war-time 1918 Sedition Act to hold people without trial - Import of communist / anarchist ideas from abroad
- Russian Revolution (1917)
- Comintern established
- Anarchist uprisings in Italy
- 1919 steel strike - 1/2 steel workers - a lot of labourers were immigrants
- The strong repression made the radical ideas look more prevalent than they are
Sacco and Vanzetti Case
- Italian-American anarchists who were accused of murder
Prosecution’s POV - Eyewitness for S&V not reliable - alibi are friends
- Ballistics connected their guns to the crime - V cannot explain how he acquired the gun
- S&V had connects to the Boda gang
Defendant’s POV - Judge seemed biased against them
- Jury found them guilty only after 3hrs of deliberation
- Defense claimed cartridge planted by police
Two features of the Sacco and Venzetti case
- Shows bias towards immigrants / anarchists within society
- Many points of doubt in the case
Immigration Acts
- Connected to fear of imports of radicalism
- Socialism prevalent in Eastern Europe (Russian Revolution)
- Anarchism in Southern Europe (incl. Italy)
- Economic recession + increased strikes
- immigrant labourers blamed for inciting
- 1929 Immigration Act - NW Europeans to be allocated 85% of places - Showed strong beliefs in nativism
- Protecting the interests of WASPs (White Anglo-Saxon Protestants
- 1921 Emergency Quota Act - restricted European arrivals to 3% of the foreign born of each nationality
- KKK most extreme case
- Eugenic Record Office advised the gov’t.
Two feature of KKK
- Defense of WASP values
- Anti-immigrant
- Anti-Catholic, Anti-Jewish
- Racist
- Anti-feminist - believed in traditional roles of women
- Anti-communist
- In favour of Prohibition enforcement - Violent and threatening activities
- Rituals and ceremonies (white robes / secret Klan language)
- Marches (40k Klansmen in Washington D.C.)
- Political influence - 12 states elected KKK members as governors in 1920s
- Violence and threats - beatings / lynchings / whippings
The Monkey Trial
- Strong influence of Christian Fundamentalism
- Anti-Evolution League of America
- Butler Act banned the teaching of evolutions and teachings that went against the Genesis in the Bible in Tennessee and Oklahoma
- Supreme Court rejected Scope’s appeal and fined him - Opposition
- ACLU (American civil liberties union) paid for Scopes to defy the ban + Darrow defending him
- Darrow mocked fundamentalist beliefs - called Bryan, a Fundementalist as a witness - showed up Bryan’s beliefs as foolish
Prohibition
Banned manufacture, sale and transportation of intoxicating liquors (more than 0.5% alcohol later confirmed by Volstead Act) i.e alcohol. 18th amendment to constitution
Causes of Wall Street Crash
- Loss of confidence by key investors
- Sold their shares early Oct 1929
- Believed that the stocks were over-inflated
- Economy declining - overproduction
- Got out early by selling their shares - Mass panic selling of shares
- Due to the nature of investors: speculators
a. Speculators
- i.e. there for the short-term profits
- inclined to sell quickly once the price drops
b. ‘on the margin’
- Borrowed money from banks to buy shares
- Risked not being able to return the money
Weak domestic market
Problems within international trade
Post-Crash US Economy
- Significant poverty + uneven wealth distribution
85 billion USD lost
- 70% on low income , 42% below the poverty line
- saturated market
- businesses reduced production -> low employment -> low demand for goods - Overproduction
- Loss of sales / price reduction -> low wages - Failed banks
- Many banks were rural banks and had poor organisation
- Rural banks had little room for crisis -> many bankrupt
Two features of the Great Depression
- Incredibly high rates of unemployment / poverty
- Led to a new presidency and government relationship with the people
Hoover’s response to the WSC (1) - Reconstruction Finance Cooperation (1932)
$2B into banks so they can continue making loans
- Too late, 3 years after the crash
- Many banks had already gone bankrupt
Fed. money allocated to state gov’ts
- Not easily available
- Only 10% of allocated funds were received by state governments
Hoover’s response to the WSC (2) - National Business Survey Conference (1929)
Organised by government to gather businesses to make promises to maintain fair wages + prices
- Not legally binding - volunteerism
- Incentives worsened by the poor economy
Hoover’s response to the WSC (3) - Hawley Smoot Tarriff Act (1929)
40% tarriff in foreign goods
- Other countries did the same to American goods -> less demand for US goods
Hoover’s response to the WSC (4) - POUR Presidential Organisation for Unemployment Relief
Coordinated relief by local funds - volunteerism
- No direct federal funds
Two features of the Bonus Marchers
- Bonus March demands and actions
- 20000 US veterans who wanted early payment for their bonuses following the First World War
- Came from all over the country, set up encampment in DC
- Attracted sympathy from much of the country as they were seen as war heroes for America
- Congress rejected the demands but allocated $100k to pay for their return journey - Strong repression by government
- Army Chief of Staff MacArthur suspected there were communist elements within the Bonus Marchers
- c.5000 remained after the Congress decision
- Police, then Army, were order to clear the camp
- 2 vets killed, dozens injured.
- infantry, cavalry and tanks used. Encampment burned.
CCC
Civilian conservation corps
FERA
Federal Emergency Relief Administration
AAA
Agricultural Adjustment Administration
TVA
Tennessee Valley Authority
HOLC
Home Owner’s Loan Corporation
FCA
Farm Credit Association - gave loans to farmers to avoid eviction and keep up with mortgage, 1 in 5 farmers got loans, didn’t benefit sharecroppers