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USA: 1919-1941
12 Republican Economic Policies
Democrat: Socially progressive and interventionist economic policies
Republican: Morally and socially conservative policies. Laissez-faire economic policies
Laissez-faire: No governmentinterference in the economicaffairs of the nation
Subsidies: Direct financial aid from government to help private industry
« During the 1920s the USA experienced a time of economic growth and prosperity (although not for
all) - significant growth in American capitalism and business.
« The presidents in this time:
- Warren Harding (1921-1923)
- Calvin Coolidge (1923-1929)
- Herbert Hoover (1929-1933)
Regulation « Fewer regulations and fewer to enforce them, allowing for businesses
to:
- Coordinate advertising
- Eliminating competition
- Creating monopolies
* No way to regulate child labour
Protectionism ¢ Policy that erects tariffs and other barriers on imported goods
— the hope was to lessen imported goods and protectthe local
economy
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of the private sector of big businesses and enacted government controls to benefit the
common people.
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e Achievements were overshadowed by disagreements over whether or not the US should side
with Britain in war against Germany and allies.
e Driving force behind creation of the League of Nations at the Versailles Peace Conference. 33yAt42JnkxG5z
forced to resign.
e Despite the scandals, Haridng was mostloved by the American people by appearing to be ‘one of
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them’.
e Aim was to oversee good government and honestyin public life. Avoided undue intervention in
the economy and put faith in self regulation of businesses. Government's task was to increase
spending yet improvethe national structure within which business would prosper and provide
opportunities for employment.
e Tax rates werecut in the belief this would encourage investment.
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introduction of oil and gas as a fuel, coal production and employment fell dramatically.
Speculative Investment: Investors and those wanting to ‘get rich quick’ were caught up ina
share-buying spree in companies that would never turn a profit.
Reliance on Credit and Rising Debt: Manufacturing industries relied on easy credit for
customers who wanted to buy now and pay later — As banks overextended credit the economy
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slowed, jobs were lost, and banks were unable to pay depositors.
Lack of GovernmentDirection: Without a strong labour union movement to help businesses in
check, the government policy of laissez faire allowed self-regulation of the market, and failure
to diversify the economy meant over-reliance on car and radio production.
Over 9000 US banksfailed as a result of the crash, many due to lax lending policies.
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‘Black Tuesday’: In September 1919, Great Britain’s Bank of London called in loans made to US
banks, triggering an immediate decline in the value of the US dollar.
To pay creditors, the US immediately recalled ar debt and reparations owed by European
countries such as Germany, Austria and Britain.
Once the American economyfaltered and the flow of American investment credits to Europe
dried up, the US slump turned into a worldwide Depression.
« Lost life-savings
«Immense debt
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US Government ¢ President Hoover did not initially understand the gravity of the crash.
Liass-faire thinking meant he stayed uninvolved for a while.
National Confidence * Confidence destroyed as the success of the stock market was seen as
~ a large part of the ‘American way’
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Unemployment 33yAt42JnkxG5z
Unemployment rose from 3.2% in 1929 to 29.4%
in 1933 and 26.7% in 1934 - Between 12 and 15
million workers.
More than a quarter of the workforce was
jobless.
Malnutrition and starvation became a reality for
hundreds of thousands of people in the US.
institutions.
Middle classlostall their savings, position in
society, and any hope of rebuilding former
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to as ‘Hoovervilles’.
In May 1933, a second armyarrived in
Washington, however Eleanor Roosevelt greeted
them. In 1936, Congress passed a bill to disburse
almost $2.5 billion in veteran's benefits.
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Male jobs in the manufacturing sector were hard
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America.
Revival of the Klu Klux Klan in the Deep South
contributed to great social tensions that incited
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overtaking Europe in the early 20" Century — Became a world power and forcing urbanisation
as the farming community became mechanised.
e WHY — USA’ abundance of natural resources, energetic spirit of free enterprise, application of
new techniques of mass production, mass immigration and a rapidly expanding labour force.
e Rapid growth put enormous wealth into the hands of a few capitalists — Led to urbanisation.
GROWING URBANISATION
e Inthe early 20" Century, the US became more urbanised so that by 1920, a majority of the
population lived in cities.
e The 1920 census showed more people living in towns than the countryside for the first time in
pH US history - 54 million out of 106 million.
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e Many saw the growth of urban living as a threat to what they saw as the American wayoflife >
their support for Republican presidents of the 1920's was a partof an effort to turn back the
clock.
MIGRATION
e Movement of people drastically increased — pressure on new cities and created new industries
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Overseas
Great Migration
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GROWING INDUSTRIALISATION
e Once the Civil War ended in 1865, the US rapidly became a major industrial power.
e This trend continued into the 1920s, with industrial production doubling between 1922 and 1927.
United Kingdom
Relative per capita industrialization level
Germany
France 33yAt42JnkxG5z
Austria-Hungary
Russia
Italy
United States
Japan
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Year
GROWTH OF CONSUMERISM
e The fastest growing industries in the 1920's were cars, chemicals, electricity and electric
products.
Growing production of motor vehicles and electricity increased the demand for gas and rubber.
Electrification of America led to the development of a range of domestic products:
o Cookers
o Refrigerators
o Washing machines
o Radios
e The development of cars and radio increased accessto forms of entertainment such as
cinemas, music, dance halls and sport.
e Advertising promoted consumerism by employing increasingly sophisticated strategies to
increase consumer demand for new products.
e Rapid industrial expansion of the transport industry increased availability of consumer
products and the fast pace of technological development combined with rapid growth in
industry provided arange of new consumer products aimed at domestic consumers.
e Circulation of newspapers and magazines expanded enormously in the 1920's, and by 1922, ten
magazines claimed a circulation of over 2.5 million.
e Increasing affluence and leisure time saw the growth of spectator sports; in 1924, it was
reported that 67,000 people watched the football match between Illinois and Michigan.
e By the 1920's, Hollywood had become the film-making capital of the world, and there had been
40 million tickets sold each week in 1920.
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e People became less concerned with traditional values of social class & tradition — became
more experimental in their approach to life.
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KEY FEATURES
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Changesin Society
Influence of Conservatism
Religious Fundamentalism
e Ladies Home Journal1921 — Jazz was the accompaniment of the voodoo dancer, simulating
the half-crazed barbarian. Jazz stimulates extreme deeds, breaking awayfrom all rules and
conventions, and its influence is wholly bad.
e Rev Burle Culpepper 1925 — Dancing is a divorce feeder; it is heathen, animalistic and
damnable. It degrades womanhood and manhood and is the most pernicious (harmful) of all
modern customs.
RELIGIOUS FUNDAMENTALISM
e Savagery of the First World War — Rise in fundamental Christianity (belief in the literal truth of
everything.
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Revivalists
e William G McLoughlin — Culpepper made his revivals a blend of vaudeville, stump speaking and
the old-time religion at its most frothy. Acted out the story of Christ's trial and crucifixion.
Fundamentalists
e Name originated from the World’s Christian Fundamentals Association that was formed in 1919.
e@ Supported avery traditional approach to religion, and were opposed to the sinful behaviour of
> the ‘modern world’.
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1681983375
Campaigned to oppose developments that reflected modernity.
Believed traditional Protestant values were under siege.
Strong in America’s rural south-east and midwest‘Bible Belt’, which influenced social
developments in the region into the 1960s.
e Rejected concept of evolution — opposition to Darwinian scientific theory being taught in
schools came to prominence in the 1925 Scopes Trial.
e Populist leader William Jennings Bryan tried to justify his opposition to the teachings of
evolution in schools.
Tennessee and 15 other states had passed lawsdeclaring it illegal to teach Darwinism.
Creationism vs. Darwinism teaching in schools.
Became a massive public event that attracted large audiences.
Prosecution of John T Scopes for teaching Darwinism — Teacher found guilty and was fined but
verdict was later overruled.
Clarence Darrow led the defence; William Jennings Bryan led prosecution.
Case highlighted the difference between small townbeliefs and city dwellers.
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e Marsden suggests the movement of fundamentalism declined after 1925 due to the ridicule they
faced in the public eye.
e Movement began in reality to conform to its popular image — The moreridiculous it was made
to appear, the more genuinely ridiculous it was likely to become.
Before 1925, the movement commanded much response, though not outstanding support.
After the summer of 1925, the voices of ridicule were raised so loudly that many moderate
Protestant conservatives quickly dropped support of the cause rather than be embarrassed by
association.
Immigration Restrictions
Xenophobia — The dislike of or prejudice against people from other countries
e Racism and xenophobia was directed at African-Americans, immigrants and socialists.
e Prior to 1921, other than the Chinese Exclusion Act of 1882, immigration into the US had never
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been systematically restricted by federal law — Changed in 1921 with the Emergency Quota Act
& Immigration Act in 1924.
e Immigration restriction laws of 1921 and 1924 put a limit on the number of the high numbers
attempting to enter the US and favoured migrants from Northern Europe.
e The USA prided itself on being aland born on immigration, but this didn't stop them from
creating laws to prevent Asians from entry — USA welcomed white immigration.
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V1 IMMIGRATION ACL
e Imposed literacy tests on new immigrants:
o Must be able to read 30-40 words oftheir language.
o First time a US law affected European immigration.
@ Section 3 of the Act listed a large number of ‘undesirables’ who would be prevented from
migrating. Listed ‘inadmissible persons’:
o Unintelligent people, people with diseases (chronic or infections), polygamists and
prostitutes.
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o Included some political categories (e.g. anarchists).
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1681983377
e Barred immigration from the Asia-Pacific region (excluding Japan and the Philippines).
IMPACT OF QUOTAS
e From the introduction of the Nuremberg Lawsin 1935, persecution of Jewish people in
Germanyand Austria(from 1938) increased, leading to large numbersof people wishing to
immigrate.
e A Fortune survey in 1938 found:
o Less than5% of Americans were willing to raise quotas to accommodate refugees.
o More than two-thirds agreed that ‘with conditions as they are we should try to keep
them out’.
e A Fortune pollin mid 1939 asked ‘Would you vote yes or no to open the doorsto a large number of
European refugees’:
o 85% of Protestants, 84% of Catholics and 26% of Jewish people answered no.
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e Anti-communism developed due to the Bolshevik Revolution in Russia 1917, greater immigration
from Eastern Europe, and post war strikes in 1919 — Red Scare (1917-1921).
e Recent immigrants from Eastern and Southern Europe in particular to be identified with
Communism, attempts to overthrow the American system of government, various
assassinations on high profile Americans etc.
e Palmerraids made Attorney General Mitchell Palmer very popular for his exposure of the
Communistthreat in the USA.
e Rise and persecution of Communism became popular with workers in the USA — Establishment
of the FBI(stop spread of communism influence) & Palmer raids in 1920 (Hoover rounded up
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Strikes
e Awave of strikes in 1919 - 3600 strikes involving 400,000 workers - convinced Americans that
communists weretrying to destroy their wayoflife.
e Many disputes turned to violence as employers used heavy handed tactics with government
approval.
e Strikes were largely the result of terrible working conditions and low pay,
e Authorities reacted to the strikes as though they were the start of a communist revolution to
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take over America.
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Bombing
e Fear of radicalism was greatly increased by a series of bombing incidents during 1919, including
one which destroyed part of the home of the Attorney General, Mitchell Palmer.
e Press whipped up hysteria, and mobs and police attacked socialist parades.
e After the attack on his home, Mitchell Palmer devoted himself to rounding up anyone he
believed was a ‘Red’.
e During the ‘Palmer Raids’, between 4000 and 6000 suspected communists were arrested in 36
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SACCOAND VANZETTL
e 5 May 1920 — TwoItalian labourers (Nicola Sacco and Bartolomeo Vanzetti) were arrested and
charged with the murder of a guard and a paymaster (15 April 1920)..
e Tried before Judge Webster Thayer — Trial began in May 1921 and lasted 45 days; took place at
the height of the Red Scare.
Jury returned a verdict of guilty and Sacco and Vanzetti were sentenced to death.
Sacco and Vanzetti were singled out becauseof their politics and their race.
Case was appealed in multiple courts, but Sacco and Vanzetti were put to deathin the electric
chair on 24 August 1927.
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e 61 eyewitnesses identified them as the killers (‘Some Italian men did it’).
e Sacco and Vanzetti were both carrying loaded guns at their arrest.
e Prosecution had said Sacco and Vanzetti had acted in a guilty manner during their arrest.
Racial Conflict
e 1865 — Slavery Prohibited
e Racial control and white supermacyvia terrorism (lynching), biased laws and
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e In Chicago, the riot lasted a week, with 38 people being killed (23 black,15 white). 537 people
were injured and over 1000 people lost their homes.
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Lynchings occurred mostfrequently in the South, but also occurred in northern states; still occurred
in 1920s and 1930s but were declining in number.
e Decline in lynchings has been attributed by Garret Peckto the increased role of the federal
government from World War I.
e Eraof voluntary policing and vigilantism came to an end - blacks stood together to oppose
white violence and henceforth became louder in their demands for equal rights.
e Attempts to passanti-lynching laws in Congress were unsuccessful
> First introduced in 1918, lynching (and failing to prevent it) became a federal crime.
> Passed by the House in 1922, but blocked by southern senators; pattern repeated in the
1930s.
> President FDR commented that southern senators would block everybill to keep
America from collapsing if he came out for the antilynching bill.
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KKK wasresponsible for lynchingsin the south and raceriots in the north — Came into being at the
end of the Civil war in the southern states and then disappeared but grew membership in the southern
and midwestern states. Aim was to attack and terrorise African-Americans, Jews, Catholics and
foreigners.
e KKK met aneed for many Americans — Sense of belonging, importance and power;had very
little influence in big cities.
e Klan attracted fanatics who believed that the best American citizens were white Anglo-Saxon
Protestants.
e Claimed 5 million members in 1923 but fell to 200,000 by 1929.
Prohibition
e The 18th Amendment to the Constitution prohibited ‘the manufacture, sale or transportation of
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e Strong conservative reaction to change — Much of the support from Prohibition came from old
Americans to reassert their values.
e Surprising little opposition to Prohibition: 33yAt42JnkxG5z
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(moonshine).
> Problems for Treasury Agents; 5000 agents were employed to enforce.
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> Popularity of Speakeasies — Became very popular with many fashionable city dwellers.
> Division among supporters; enforcersveryill equipped to fight alcohol.
> Role of government — Historians argue that Congress did not do more to enforce
Prohibition as they did not want to alienate rich and influential votes who drank.
e Wickersham Commision — Set up by Hoover to investigate Prohibition and favoured it to
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continue.
e FDR abolished Prohibition in 1933 — 21st Amendment made it the responsibility of individual
states to decide on issues, rather than abandonment of Prohibition in total.
Strengths: Weaknesses:
Broad favours and supporters Became very unpopular and people
initially. voted for Hoover who would end it.
Strong in rural areas and Midwest. No enforcement.
By 1914, many states had already Unpopularity towards the end of
banned alcohol. Hoover's presidency meant he did not
Anti-Saloon League made Prohibition get re-elected.
a big issue in politics — Politicians Geographically difficult to enforce
supporting Prohibition maintained Prohibition.
Enforcers were getting bribed.
Rise in crime — Gangs fighting over
control of alcohol.
Bootleggers became rich as they
were not taxed by the government.
Opportunities: Threats:
16 Amendment (1913) meant the States that were ‘wet’ undermined the
federal government could levy work of those that were ‘dry’.
income tax, making it less reliant on Looming reapportionment of
taxing alcohol. Congress would see more urban than
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rural members.
resources (e.g. grain) and animosity
towards German culture.
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