politics, fear, & scandal chapter 14, section 1. president warren g. harding 1920, won election...
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POLITICS, FEAR, & SCANDALCHAPTER 14, SECTION 1
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President Warren G. Harding
• 1920, won election (replaced W. Wilson) on a call to ‘return to normalcy’
• Issues of the election were:
1. recover from the war
2. restore pre -war
economy
• Besides the issues, why do you think Wilson was easily defeated?
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*SCHENCK VS. U.S.• Schneck was a WW1 soldier who wrote letters to
draftees trying to convince them not to report for duty.
• Was jailed & convicted of espionage.• Schenck claimed he was protected by the 1st
amendment.• *Supreme Court ruled that it was
the court’s right to silence free speech when there was a ‘clear & present danger’.
Do you believe his 1st amendment rights were violated?
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Which column represents examples of a ‘clear and present danger’?
#1
a. Yelling ‘fire’ in a theatre
b. Threatening to kill someone
c. Burning a flag beside a building
d. Throwing a white powder up in the mall & yelling ‘anthrax’
#2
a. Calling the President a bad name
b. Burning draft tickets in a barrel
c. Writing a letter to the newspaper in protest of a law.
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*Communism• *Ideology that significantly influenced the 20th
century, which saw intense rivalry between the “communist world” & the "capitalist world" (countries with market economies & democratic forms of government), culminating in the Cold War between the Eastern bloc & the "Free World".
• Single Political party• Country 1st; Individual 2nd
• Lenin, Russia, pledged to spread communism around the world
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American Fears
• 1919, Russia took over Hungary, spreading Communism in Europe.
• In the U.S., violent labor strikes were ‘tied’ to communism.
• Bombs were sent to government officials
• Communism seemed to be spreading everywhere acrossthe world & in the U.S.
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*The Red Scare
• 1918-21
• The press increased American anxiety with sensational stories.
• *The U.S. was in a “Red Scare” - intense fear of a communist takeover.
• *Americans called for communists to be jailed & limits on immigration!
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The Palmer Raids
• Attorney General Palmer’s house was destroyed by a bomb
• He began a campaign to hunt down groups who posed a ‘clear & present danger’ to the U.S.
• Set up special forces to arrest subversives like Communists, Socialists, & Anarchists.
• Thousands of radicals were arrested without evidence.
• Many were innocent immigrants & were deported.
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*Immigration Restrictions
• *Congress reacted to the chaos of the times & public outcries for Nativism to limit immigration.
• Quotas were set at 3%• *Immigration Act of
1924 - reduced the number of people who could enter the U.S.
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*Sacco & Vanzetti Trial
• *Italian immigrants, with radical Anarchist beliefs.
• Arrested for murder.• Tried & executed.• *Many thought they were executed because of
their radical beliefs• Example of intolerance & nativism.
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• Pseudo-scientific belief that the human race could be improved by breeding. Social Darwinism
• *1920s = belief in the superiority of the Anglo-Saxon “race”
• *Led to new restrictions on immigration from ‘low IQ’ countries
• Decreased after WWII
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• Positive Eugenics aimed to increase birth rates of genetically superior individuals through genetic testing, ‘better baby contests’ & designer babies
• Negative Eugenics tried to reduce birth rates through sterilization of the ‘feeble or unfit’, marriage restrictions, & extermination.
What would be some positive benefits of this movement? Negative?
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*Domestic Issues*• Nativism flared due to: -Patriotism
-Religion-Urban Conditions-Jobs-Red Scare
-Trial of Sacco & Vanzetti
• Result = revival of KKK
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1. The Supreme Court decision Schenck vs the U.S. ruled?
2. Why were Americans so concerned about Communism?
3. Sacco & Vanzetti were executed because?4. Americans response to the Red Scare
included the passage of?5. Nativism led to the revival of what hate
group?6. The Red Scare, Nativism, & Palmer Raids
were all based on the idea of racial superiority & that some ethnic groups are inherently bad. This is known as?
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*Republican Leadership
• Republicans ruled the decade in all branches• *Return to Isolationism & Laissez-faire business
policies.• Harding died in office & C. Coolidge became
president.• Both presidents believed
in Isolationism, expandingtrade, & world disarmament afterWW1
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*Coolidge Presidency
• *“The business of America is business,” demonstrated Coolidge’s belief in Laissez-Faire government.
• So adamant about this, refused grant $ to flood victims.
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*Fordney McCumber Tariff
• *Raised import taxes• Discouraged certain imports• Angered European nations• France & Great Britain argued to call off war
debts• Congress agreed to scale back war debts• *Result: Hurt both
U.S. Industry & European Nations
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During Harding’s Administration (1922-23), his Secretary of Interior received $300, 000 for granting government land to private drilling companies. This bribery scandal further tarnished Harding’s presidency.
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*Kellogg-Brand Pact, 1928
• American Women took the lead in a peace movement committed to outlawing future wars.
• Renounced the aggressive use of force “as an instrument of national policy”.
• *15 nations pledged not to use the threat of war in their dealings with other countries.
• Unsuccessful because there were no provisions to enforce it.
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*ELECTION OF 1928
• *Herbert Hoover was elected president, 1928.
• The public expected continued prosperity as the 20’s roared on!
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1. Most Americans felt the labor strikes were fueled by the?
2. Republicans believed in a foreign policy of _____ & a ________ ________ economic policy.
3. Who said, ‘the business of America is business’?4. . What raised import taxes & hurt both the U.S. &
Europe?5. What scandal granted government oil lands to
private oil companies? 6. Pact in which nations pledged not to use the threat
of war as national policy.
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A BUSINESS BOOMCHAPTER 14, SECTIONS 2 & 3
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*During the 20’s =
development of new consumer industries created an economic
boom.
• A&W Rootbeer opened-1st fast food chain.
• Roadside advertising began.
• Average salaries rose 28%.
• The number of millionaires doubled.
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*A Consumer Economy
• *A consumer economy depends on large amounts of spending by the consumer.
• Increased spending larger profitshigher wages
• Many factors cause spending:
1. higher wages
2. clever advertising
3. lower costs
4. easy credit
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Buying on Credit
Manufacturers invented installment plans to increase sales.
Installment Plans = buy on credit & make monthly payments.
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Electric Power
• Electric power customers quadrupled
• New homes wired to allow electricity
• Electricity=refrigerators, vacuums & washing machines
• Appliance sale competition spurred advertising
• Advertisers began to use celebrities & images to advertise their products
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Rise in Productivity
• Productivity needed to rise to meet demands.• GROSS NATIONAL PRODUCT(GNP) = the
total value of goods & services produced in the U.S.
• The GNP rose 6% a year during the 20’s
• Productivity rose due to:-new resources-management methods-new technology
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*Henry Ford
*Goal: to make the automobile affordable
to ordinary people.
• Ford invented the ‘horseless carriage’
• In 1908, sold 30,000 cars
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*Ford’s Assembly Line
• *Made assembly line more efficient
• Cars moved to the workers as each did a specialized job
• Cut assembly time from 14 hrs. to 93 minutes!
• Model T produced every 24 seconds
• *Goal = create cars that ordinary people could afford
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*Automobiles = Growth
• The automobile industry caused other industries to prosper: Steel, Leather, Oil
• *The automobile boom resulted in new businesses:1. Garages2. Car Dealerships3. Hotels4. New Roads5. Camp Grounds
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• According to the chart, what year did car sales exceed (go over) 3.5 million? 4.0 million?
• What caused this trend?
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1920 1921 1922 1923 1924 1925 1926 1927 1928 1929
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Non-Automobile Growth1. Movie Theatres2. Sporting Events3. Airlines4. Shipping IndustriesMost people enjoyed a higher standard of living.
• Farmers were by-passed by the economic boom. • Farm $ plummeted & many gave up.
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True or False1. Henry Ford’s modification of the assembly line helped
to make cars more affordable.
2. A consumer economy relies on heavy spending.
3. New inventions caused a decrease in consumer spending
4. The boom in the automotive industry caused a decline in other industries.
5. New roads grew because of the huge growth in the automobile industry.
6. Henry Ford’s goal was to make an expensive car for the rich.
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Prosperity
• Market value of stocks = $27 billion• Stock values rose $11 billion• Workers wages rose 40%• Corporate leaders encouraged investment
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*Distribution of Personal Income 1929Gross Income Percent of Population
Earning this IncomeOver $10,000 - 1%$6,000 to 9,999 - 3%$5,000 to 5,999 - 2%$4,000 to 4,999 - 4%$3,000 to 3, 999 - 8%$2,000 to 2,999 - 17%Under $2,000 - 65%
1.What % of the population had an income of $6,000 or more?
2.The majority of Americans earned how much $ ?
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*PERSONAL DEBT
• *Americans became accustomed to buying & living on CREDIT!
• People relied on future income
• People spoke of unending prosperity
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*Stock Market
• Climbing stock prices encouraged speculation, (making high risk investments)
• *People began buying on margin (buying stocks on credit) to get rich quick!
• *Installment (margin) buying & the unregulated market caused an economic boom during the 20’s.
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New York Stock Exchange today
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*Troubling Signs in the Economy*1. *Overproduction:
-Industries produced too much & people could not buy fast enough
-Industries began to slow down
-Factory workers still worked for low pay
2. *Farmers Hardships:
-Overproduction & competition caused
farmers to default on loans
causing banks to fail!
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3. *Uneven prosperity = uneven distribution of wealth among Americans
4. *Rising personal debt. 71% earned minimum wage & 80% had no savings
5. *Stock speculation (buying on credit)
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1. T/F The economic boom of the 20’s was caused by a growth in consumer industries.
2. American’s became used to living on?
3. Buying on margin is?
4. Installment buying is the same as buying on?
5. T/F The majority of Americans during this time controlled the majority of the money in America.
6. T/F Both industry & farmers suffered from overproduction during the 20’s.
7. Describe 5 troubling signs of the economy in 1929.