the beginnings of prosperity and the roaring twenties
TRANSCRIPT
The Beginnings of Prosperity and the Roaring Twenties
Fear Following WWI
Following WWI, the people and government of the United States faced new developments in the world that caused them to react with fear and aggression.
Returning to Normalcy
“My best judgment of America's needs is to steady down, to get squarely on our feet, to make sure of the right path. Let's get out of the fevered delirium of war,…Let us stop to consider that tranquility at home is more precious than peace abroad, and that both our good fortune and our eminence are dependent on the normal forward stride of all
the American people.” Warren G. Harding "Return to Normalcy,"
Boston, MA, May 14, 1920
Two Foreign Policy Opinions
Woodrow Wilson “My Fellow Countrymen: the
armistice was signed this morning…. It will now be our fortunate duty to assist by example, by sobering friendly counsel, and by material aid in the establishment of just democracy throughout the world.”
Senator Henry Cabot Lodge We would not have our politics
distracted and embittered by the dissensions of other lands. We would not have our country’s vigor exhausted, or her moral force abated, by everlasting meddling and muddling in every quarrel which afflicts the world.”
Problems Facing Veterans
Returning soldiers faced unemployment or took their old jobs away from women and minorities.
Nothing is too good for you, my boy! What would you
like?
A job.
Postwar Economy
After WWI, America actually entered a recession as the economy moved from wartime to peacetime production Production, farm income,
and exports all fell causing increased unemployment
By 1923 the economy began to boom when Coolidge became President
Inflation and Increased Prices
Product 1914 Price 1919 Price
Milk 9 cents per Quart
15 Cents per quart
Steak 27 cents per lb. 42 cents per lb.
Butter 32 cents per lb. 61 cents per lb.
Eggs 34 cents per dozen
62 cents per dozen
Fear in AmericaMany Americans respond to the stressful conditions by becoming fearful of outsiders.
“The nation went on thinking with a mind of a people at war. They had learned during the preceding nineteen months to strike down the thing they hated; not to argue or hesitate, but to strike. Germany had been struck down, but it seemed that there was another danger on the horizon. Bolshevism was spreading from Russia through Europe; Bolshevism might spread to the United States. They struck at it – or at what they thought was it.”
- Frederick Lewis AllenOnly Yesterday
Red Scare – Palmer Raids
Attorney General Palmer appointed J. Edgar Hoover as special assistant
Hunted down suspected Communists, socialists, anarchists
Fear of Outsiders
Nativism – Favoring the interests of native-born people over foreign-born people Need for unskilled labor decreased 1919-1921 immigration increased from 141,000
to 805,000 (600%)
The Klan Returns
“100 percent Americanism” Discriminated against blacks, Jews, Roman-Catholics,
immigrants, Communists, unions, saloons 4.5 Million members
Economic Problems for Other Groups - Labor Strikes dropped during the war because Pres.
Wilson encouraged collective bargaining so work continued – union membership grew as a result
In the 20s the government took a tough stance against unions and strikes using troops and injunctions
Supreme court struck down child labor and minimum wage for women laws
Fear of Labor
During WWI the government did not allow strikes and unions promised to adhere to this policy in support of our nation at war.
Following WWI – Management wanted a return to laissez-faire Workers pressed for higher wages, etc.
Beginnings of Communism or Fighting for Rights
Boston Police Strike Demanded higher
wages Leaders fired; Officers
strike Governor Calvin
Coolidge brings in National Guard to end strike
Striking police replaced
U.S. Steel Mill Strike Demanded higher wages
and shorter work hours Managements refused to
negotiate 300,000 workers on strike Management used
propaganda to paint strikers as Communists
Public report displayed poor conditions – workers got 8-hour work day, but no Union
Labor is Hurt
Much of the workforce were immigrants willing to work in poor conditions
Immigrants spoke many different languages making it difficult to organize
Migrating farmers used to hard work Most unions excluded African Americans Connected publicly to Communists
Economic Problems for Other Groups -Farmers Produced more during the war due to increased
prices and demand Bought more land and machinery with more
money which allowed them to produce more When the war ended demand fell and
European farms were operating again so demand fell while American farmers still produced a lot, driving down prices
People stopped farming
Prosperity Under Coolidge
Coolidge’s policies benefited big corporations and the wealthy Reduced taxes for business and wealthy Reduced debt and balanced budget by raising
tariffs and demanding repayment of war debts Tariffs were raised for protectionism which
helped industry and agriculture but hurt world economy
Regulatory agencies helped business more than regulated
Mergers were not regulated
Stock Market Speculation
With more money, people began investing in the stock market more
People figured the economy would always be good so encouraged large investments
Problem Stocks traded on margin meaning people
could buy stocks with a tiny down payment Borrowed the rest from brokers assuming they
could pay it off with the profits from the stock
Mass Consumption
Large amount of manufactured goods available and with good economy people had money to buy them with
Areas of Mass Consumption Automobile Industry The Electrical Industry Radio and Motion
Pictures Use of installment buying