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1919
1920 Republican Warren Harding elected President Prohibition starts Sacco and Vanzetti arrested suspicion armed robbery and murder
1923
1924
1925
1927 1928 Sacco and Vanzetti executed for anarchist views during Red Scare
1932
1933 Franklin D. Roosevelt starts his presidential term after a landslide victory from the 1932 elections Prohibition ends
1935 1936 1937 1939 Second World War begins in Europe Roosevelt re-elected for president
1941
Limit on Immigration put in place by Government fear of radicals Native Americans granted citizenship and allowed to vote
Nobody is allowed to be part of more than one of these branches to make sure no one has too much power
Isolationist America
President Wilson took America into the first world war in 1917 Wilson wanted the US to take a lead in the league of Nations Most Americans supported the isolationist view of not getting involved Warren Harding was then elected President in 1920 (a republican) The next 9 years Americas economy boomed
The Boom
Why was there a boom in the 1920s? Industrial strength USA was very rich in natural resources companies didnt need to import good s from foreign countries
This meant trade was internal, keeping money internal and benefitting their economy when industries got bigger more jobs opened up and money filtered down all social classes
The First World War Americans stayed out of the war (until the very end) but they did sell to the allies lots of munitions and weapons benefitted their economy Took over European trade became the main supplier of world trade e.g. took over Germanys chemical industry and made it even bigger than it ever was with Germany - Built their economy Republican Policies Laissez Faire o President should leave businesses alone and government shouldnt interfere with the lives of the people Tariffs o Republicans believed that setting high import tariffs would make it expensive to import foreign goods meaning trade would stay in America o They protected businesses from foreign competition and allowed Americas companies to grow quicker Low Taxation o Kept taxes low benefitting mainly the rich and businesses o Slightly benefitted the ordinary working man Trusts o Huge super corporations that dominated an industry o They were allowed to do what they wanted - they were captains of industry New Industries As more people got money (for the reasons above) they were willing to spend more money. More luxury industries got created, like the car industry or the radio industry, so more people were employed. More people employed meant more people with more money and they spent more in these industries, making the economy strong A State of Mind During the 1920s Americans really started to believe that they had a right to prosperity this meant having a nice house, job and plenty to eat. Also for them to spend money on luxury items and consumer goods spending money became the trend in the 1920 More people spending money meant a growth in industry and a booming economy What happened in the Boom? More money was being spent in industries growth in the economy New industries grew massively: o In 1919 there were 9 million cars - by 1929 there were 26 million cars o In 1920 there were 60,000 radios - by 1929 there were 10 million radios o In 1915 there were 10million telephones - by 1930 there were 20 million radios o In 1921 for every one fridge there were 167 fridges in 1929 (1 : 167) o Companies invented machinery that made items much more efficiently and quickly New roads got made because of more cars road building requires workers more people employed Luxury Items like silk stockings became very popular for all social classes (used to be only available for the rich) Skyscrapers were built in New York Towns grew to accommodate more workers Airlines were invented before 1918 there were almost no civilian airlines by 1930 new aircraft companies flew 162,000 flights a year!
Electricity in homes the electricity grid was made Moral values changed Jazz music became popular, more equality for women (they had jobs), the film industry was made, dancing and flapper girls Buying on credit buy now pay later scheme many cars and radios were bought like this
Did everyone share in the prosperity of the boom? The Farming industry After the war Europe imported a lot less food from America because Europe was poor and also was a response to the high tariffs put in place by America - farmers then couldnt sell their produce to other countries The root of the problem, though, was overproduction farming was doing well before the 1920s and machinery was improved and more land was being farmed farming was very efficient Farmers were also struggling against the efficient Canadian wheat producers who also supplied America Workers from Older Industries The coal industry suffered greatly due to the fact that new industries such as oil and electricity were becoming a lot more popular Leather and natural textiles suffered because new man- made materials became a lot more popular Distribution of Wealth The distribution of wealth was really bad as profits and dividends to shareholders increased massively, average earning of workers only increased slightly Around 42% of Americans lived below the poverty line big problem There were still high levels of unemployment because, although industry more than doubled, new machinery was also being invented to replace workers Many poor immigrants and whites did not share in the wealth of the boom This, in the end, meant that the consumer led boom was bound to fizzle out, with so many poor it was unlikely to last (if changes werent made to distribute wealth more, which they werent!)
Most of America was made up of immigrants but immigrants who had been there longer tended to look down upon newly arrived immigrants this was mainly because they were competing for jobs, homes and money In 1924 the Government were worried with the high levels of immigrants and radicals, so put a limit on immigration
The Klu Klux Klan (KKK) In the southern states there were more African Americans than there were White Americans White Governments, fearing there power, put many laws in place which controlled their freedom they could not vote, denied access to good jobs and education so they suffered great poverty The Klu Klux Klan were a radically racist white group who used violence to intimidate African Americans they also attacked Jews, Catholics and other foreign immigrants. They used lynching, beatings and parades to intimidate the groups thousands of African Americans were murdered by lynching whole white families (including kids) would clap and cheer when this happened They were formed in the 1850s by former soldiers after the civil war they were there to keep whites in control - it declined until 1915 where they were shown in a movie that glorified them the movement rapidly spread in the 1920s where working class white men were competing for jobs with African Americans The Klan then declined in 1925 when one of the main Klan members was put on trial and exposed the corruption of the Klan Improvements In the North, African Americans had a better chance of getting a good job and a good education In Chicago and New York there was a growing (but small) middle class of African Americans There was also a successful black capitalist movement that encouraged African Americans to set up businesses In Chicago African Americans boycotted lots of shops saying that they would not buy items unless black people were employed Black singers, actors (such as Paul Robeson) and poets tackled racism They set up political groups and tried to end lynching amounts of lynching fell Problems African Americans were forced to live in isolated ghettos They still had a lower life expectancy than regular Americans The Vanishing Americans the name given to the slowly diminishing Native Americans o In the 1920s the Government were becoming concerned about the way that they were being treated many werent able to get jobs, they had poor health and education and lived in extreme poverty companies were also allowed to seize their land o Many were giving up the fight to live in their traditional ways o Children had to be sent to special boarding schools that would turn them into white Americans and destroyed their native beliefs and culture The Red Scare Racist attitudes were made worse in the 1920s because of fears of communism and what was happening in Russia It feared that many of the more recent immigrants from eastern Europe and Russia were binging similar radical ideas with them this reaction was called the Red Scare Evidence to provide the fear: 400,000 workers went on strike, race riots in 25 towns, in Boston police went on strike and allowed thieves to roam and loot the city also many bombs went off, including, in June 1919, that almost killed the US Attorney General (Mitchell Palmer) these strikes and bombs made Americans worried that communism was going to spread through the country After the bombs, everyone known to have radical beliefs were round up and many immigrants were deported back to their countries this purge was carried out by J Edgar Hoover (worked for Palmer) he was sinister and racist deporting people back even if they had no radical beliefs
Sacco and Vanzetti Victims of the Red Scare arrested in 1920 on suspicion of armed robbery and murder It quickly emerged that they were anarchists and the trial became a lot more about their political beliefs and Italian race The Judge was biased and prejudiced he even said that they may not have committed the crime but is to blame because they were anarchists After 7 years of appeals they were executed in 1927 protests broke out The Monkey Trial Urban people believed in Evolution theory Rural people still very fundamentalist and religious believed in creation At school many of the children in the rural areas were taught the evolution theory and this upset the religious people In 6 states they built up a resistance and got the teaching of evolution banned in the schools A Biology teacher John Scope deliberately broke the law so that he could get his case against Fundamentalism recognised He was convicted but the Fundamentalists were made to look weak and silly which is the result he wanted
Corruption The prohibition lead to lots of corruption many of the law enforcement officers were involved in the trade themselves! Big Breweries stayed in business they bribed local government officials, prohibition agents and the police to leave them alone It was hard to convict people because many judges were also bribed Gangsters, Bootleggers and Speakeasies Bootleggers supplied the alcohol from overseas or illegal places in America They sold it to the gangster who made lots of money by running speakeasies The liquor trade and speakeasies also boosted other illegal trades like prostitution, gambling, and protection rackets all of them run by gangsters Al Capone was one of the most famous gangsters in Chicago he arrived there in 1919 after running from a murder investigation in New York o Capone took over the alcohol business from the leading gangster boss Johnny Torio in 1925 o He built up a huge network of corrupt officials, lawyers, police, agents and judges and the Mayor o Al Capone was known to be generous setting up a soup kitchen and always leaving generous tips o He, however, was ruthless and order the murders of over 300 people - and lead the St Valentines Day Massacre in 1929 where 7 rival gang members were killed
Farmers and Companies were producing more than they could sell to the American people the people who could afford the luxury goods had already bought them and the poor couldnt afford to buy them Also because of the high tariffs America put on imports, the Europeans retaliated and put high tariffs on US imports too this meant that the surplus of goods that America had couldnt be sold overseas to Europe and there industries weakened As a result of this companies had a surplus of goods and the price and value of them fell which resulted in huge company losses and a drop in the price of shares leading the Wall Street Crash When prices fell drastically in 1929 in took three days for panic and share prices hitting zero to cause the crash
The Republican policies They let businesses, investors and banks get out of hand because they wouldnt set any regulation Because tax was so low they couldnt bail any of the people out and start up the economy again Also because of their high tariffs on imports from other countries, Europe didnt want to trade with them The consequences of the Wall Street Crash The Wall Street Crash overproduction of goods weakened businesses and caused stock prices to go down these caused panics which lead to the Wall Street Crash. Many of the speculators borrowed money from banks to invest in stocks which meant they couldnt afford to lose the money so when it happened they were the first to cause massive panic. When the crash happened the country went into a depression and the banks lost lots of money from people who had borrowed money and not been able to pay it back. The Banking Crisis In 1929 many banks failed and in 1930 over 1,000 banks went bankrupt. The huge bank in New York failed and lost around 1/3 of New Yorkers money. This ruined Americas confidence in banks and billions of dollars were quickly drawn out of the banks so a further 2,000 failed. Reduced Spending The boom had relied on the spending of the American people but the bust and the poverty that came about because of it caused people to save instead of spend causing many more industries to go bust because no one was investing in them and no one was buying anything. Unemployment Industries going bust meant many people lost their jobs or if the industry didnt fail they lost a lot of money and people were laid off or paid a lot less this made a vicious cycle as unemployed families couldnt spend money and so more industries failed and more lost their jobs. Human Cost of Depression Farmers were hit hardest as they hadnt made much money during the 1920s either many of them had to pack their belongings and hit the road many headed for California to see if they could get a labouring job Workers in cities were also hit hard as many were unemployed the parks at night were filled with homeless and unemployed every town had a Hooverville which was a shanty town.
Franklin D. Roosevelt
1932 Presidential Election Why did Roosevelt win? The Failures of Herbert Hoover Herbert Hoover, the president at the time of the Crash, up until 1932, failed to accept that there was any problem he insisted that prosperity *was+ just around the corner He blocked money that would have allowed congress to create jobs and believed that relief should be provided by local governments or charities these ideas made him very unpopular Hoovers reputation was particularly damaged by the event in June 1932 when thousands of servicemen who had fought in WW1 were asking for their war bonuses they were protesting peacefully and singing patriotic songs. Hoover refused to meet them and appointed General McArthur to meet them with respect. McArthur ignored this instruction, convincing himself they were communist protesters, and he ordered
troops and police to use tear gas and burn the marchers camps. Hoover then publicly thanked God and the USA knew how to deal with a mob making him more unpopular. Hoover didnt believe in an active government and wouldnt prop up the banks or businesses believing they should be the ones to sort their problems out also he didnt help the poor because he felt that it would mean the people would be less independent and less willing to work The Campaign Franklin Roosevelt was the complete opposite from Hoover he believed in: o An active government to help the lives of the people o He had plans to spend public money to get people back to work o He was not afraid to ask for advice from a wide range of experts and union leaders o All of the above were needed to get America back on its feet Roosevelt was confident about victory as such ill feeling was felt towards Hoover however he took no chances He went on a grand tour of America in the weeks before the election to make speeches and attack the republicans Roosevelt promised the American people a New Deal to help America He won by a landslide and won the majority of the seats at congress too. The New Deal The New Deal was constructed within the first hundred days of his presidency he worked all round the clock to produce and enormous range of measures. He immediately tackled the banking crisis. He ordered over the banks to close and remain closed until government officials checked them over 5,000 banks were allowed to reopen and were supported by Government money Roosevelt and his advisors came up with rules and regulations which would prevent the reckless speculation happening again he set up the Emergency Banking Act and the Securities Exchange Commission. Also, every Sunday he would broadcast on radio to the nation, many would tune it to listen to his fireside chats. this brought the American people closer to the Government and made them feel more confident New Deal measure/agency The Federal Emergency Relief Administration The Civilian Conservation Corps (CCC) Issue it aimed to tackle Tackling urgent needs of the poor Unemployed young men Actions taken $500 million was spent to supply blankets, employment schemes, soup kitchens and nursery schools They could sign up for 6 months or longer if needed. The system supplied them with a small jobs on environmental projects and national parks the money generated could be sent back to the mens families It set quotas to reduce farm production and push food prices up. At the same time the AAA helped farmers modernise and use farming methods that would conserve and protect soil. Farmers could also receive help with their mortgage. Used Government money to build schools, dams, bridges, roads and airports these were vital in the long term and also created millions of jobs in the short term Improved the working conditions and banned child labour, also set out fair wages. The idea was to stimulate the economy by giving workers more money to spend. The scheme was voluntary. Evidence it was/was not effective Helped the poor and more people were employed 2.5 million young men helped by the scheme
Helped farmers a lot but the modernising of equipment put some farm labourers out of work Millions of jobs were created
Tackle lack building projects to put people into work and generate money Tackled child labour and poor working conditions
Over 2 million employers joined the scheme however if it wasnt voluntary it would have worked better
Tackle the problem of the river drying and reducing farm land to dust causing poverty
The Tennessee Valley covered seven states and was a problem. Roosevelt set up the TVA to build a series of dams on the Tennessee river that would flood. It transformed the area and meant crops could be irrigated, it also provided electricity for the area and created thousands of jobs in an area badly hit by the depression to build it.
The Second New Deal Despite his efforts Roosevelt still got criticism o Some were saying he did too little: Senator Huey Long said that it wasnt helping the poor enough he should tax the rich more so that more things can be built like schools and hospitals. Also he should tackle the racism in Louisiana, which Huey Long was the Senator to, he employed African Americans on the same terms as Whites and clashed with the Klu Klux Klan. Long wanted pensions for everyone over 60 and personal fortunes reduced so that the wealth could be shared. Dr Francis Townsend also wanted pensions for people over 60 o Some were saying the New Deal did too much: Republicans and businesses were saying it did too much government shouldnt support trade unions or support higher wages this should be something businesses should deal with themselves Schemes such as the Tennessee Valley Authority created unfair competition for private companies They said Roosevelt was turning America into a communist country not good for democracy High taxes punished the rich who worked hard to get there they discouraged people from working hard because you gave money to people for doing nothing or doing unnecessary jobs Roosevelt created a Second New Deal to tackle some of the problems: 2nd New Deal measure/agency Wagner Act (WA) Issue it aimed to tackle Better pay for workers Actions taken Evidence it was/was not effective It strengthened the position of trade unions however businesses remained immensely powerful and companies such as Ford employed their own thugs or controlled local police forces so that they could attack unions Helped a lot of people who were vulnerable
Allowed and supported trade unions to operate in a company let them negotiate with employers for better pay and conditions- also made it illegal for a worker to be sacked for being part of a union
State pensions were given to the elderly or widowed. It also helped sick or disabled people. The act, most importantly for the time, set up unemployment insurance. The employer and the employee would set aside a bit of money each month so that if the worker became unemployed then they could receive a small benefit until they found work It brought together all the schemes trying to create jobs. It extended its projects to make jobs for office workers, actors, artists and photographers. They were paid to, for example,
One Project, the Farms Security Administration Photographic Project, took 80,000 photos of farming progress. There were
Resettlement Administration (RA) The Farm Security Administration (FSA) (replaced the Resettlement Administration in 1937)
They helped smallholders and tenant farmers move into better quality housing Gave loans to farmers to help them buy their land. Also built camps to provide decent living conditions for migrant workers
other schemes where artists were paid display a town in the Federal Arts project. Over 500,000 families were moved into better quality housing by the scheme Helped farmers buy land and migrant workers to have better places to live.
The Supreme Court In 1936 Roosevelt was re-elected for president and the American Supreme court was his most powerful opponent The court was dominated by Republicans who were opposed to the New Deal It could overturn laws if they were not constitutional An example of this was: o When the Schechter Poultry Corporation was found guilty of breaking NRA regulations because it was: Selling diseased chicken Filing false sales claims Exploiting workers Threatening government inspectors o It appealed to the Supreme Court and they ruled that the government had no right to prosecute the company because NRA was unconstitutional and too much power of local states Roosevelt was angry that the court was ruling against laws that had already passed and disrupting democracy he appealed and asked that he could appoint six more judges sympathetic to his New Deal The American public were shocked and outraged and he had to back down however the Supreme Court also were less obstructive in the future Was the New Deal a success? In 1937 Roosevelt did some cuts in the economy and cut the New Deal budget unemployment spiralled upwards and so did loss of hope in him by some Americans (although he was still very popular with ordinary Americans). A New Society The New Deal restored faith in the government It started something that had never really been done before: help from the Government changed politics for the better There was no corruption or scandals, even though the Government handled billions of dollars o Harold Ickes, Secretary of the Interior, tapped phones of employees to make sure there was no corruption he also employed African Americans and campaigned against anti Semitism and supported the cause for the Native Americans The New Deal divided the USA Roosevelt and the government were accused of being communist and undermining American values The New Deal undermined local government Industrial Worker The NRA and Second New Deal strengthened the labour unions against the industrial giants They supported negotiations between corporations and unions
Unions became large enough to bargain with corporations Big businesses still remained immensely powerful and unions were treated with suspicion Strikes were broken up by brutal violence and companies like Ford hired thugs and bribed local police to attack unions
Unemployment and the Economy The New Deal created millions of jobs It stabilised the banking system It cut the number of business failures Projects such as the TVA brought work and improved living standards to deprived parts of USA The New Deal built useful things like roads and schools However it never solved underlying economic problems and the US economy took much longer to recover than the European economy Confidence remained low and a recession hit after the New Deal was cut in 1937 The War ended the unemployment lows African American Around 200,000 African Americans gained benefits from the CCC and New Deal agencies Many benefitted from slum clearance schemes and housing projects Many New Deal agencies, however, discriminated against them and they either got no work, low wages or worse treatment Roosevelt didnt pass a law to stop lynching Women The New Deal saw some women in higher positions Mary Macleod Bethune, an African American woman, headed the National Youth Administration Most of the New Deal programmes helped men Local governments tried to avoid paying out social security payments to women Native Americans The Indian Reorganisation act (1934) helped to provide money so that Native Americans could buy and improve land It also helped them to preserve and practices their traditions, laws and culture However they remained poor and excluded