From Business Culture to Great Depression The Twenties, 1920-1932

APUSH Chapter 20 Notes From Business Culture to Great Depression: The Twenties, 1920-1932 The Business of America I. A Decade of Prosperity A. The 1920s was an age of prosperity, with cars (automobile industry) being the backbone of economic growth 1. General Motors was the company that surpassed Ford in producing cars B. American growth extended globally as well, producing almost 85% of the world’s cars and 40% of the world’s manufactured goods II. A New Society A. Society is beginning to spend a lot of its income on leisure activities, increasing the demand for the entertainment sector (movies), as well as radios and phonographs 1. This ultimately creates a celebrity culture III. The Limits of Prosperity A. Although society overall has progressed, there were many people that were limited because they did not have the financial means to purchase radios, washing machines, etc B. The rich got richer and controlled most of the means of income, whereas the poor stayed stagnant IV. The Farmers’s Plight A. The golden age of farming occurred during WWI because of the increased demand needed for crops B. However, post-war the farmers and rural America were in an economic depression because of the declining income and banks foreclosing thousands of farms V. The Image of Business A. Even though the rise of unemployment continued in other countries from WWI, the image of American prosperity and the way of life was spread through Hollywood films B. The image of business received more positive attitudes; evidence can be seen with more retail investors getting into the stock market VI. The Decline of Labor A. There was a decline in labor; however, there was also an increase in the idea of “welfare capitalism” -- where business leaders began to pay attention to the “human factor” in employment 1. Some corporations implemented private pensions, medical insurance plans, job security, etc. VII. VIII. B. Employers in 1920 embraced the American Plan, where the workplace is free from both government regulations and unions 1. However, “company unions” are allowed-- managed by the leadership C. Organized labor unions began to decrease in numbers The Equal Rights Amendment A. Two divides to the conception of women’s freedom 1. Motherhood 2. Individual autonomy and the right to work B. Alice Paul and the National Women’s Party promoted the Equal Rights Amendment (ERA) to the Constitution 1. ERA would eliminate all legal distinctions on the basis of sex C. A lot of women disagreed with the ERA because it would effectively make women self-dependent, removing mothers’ pensions and laws limiting women’s hours of labor D. Thus, every major female organization opposed the ERA Women’s Freedom A. Although political feminism may have faded, personal freedom survived in the marketplace 1. This personal freedom was seen as a lifestyle, and a rebellious attitude -also seen as individual autonomy or personal rebellion 2. Effectively, they began to things that would then-be-considered unwomanly (like short skirts, drinking, etc.) Business and Government I. The Retreat from Progressivism A. Followers of Sigmund Freud argued and saw people being mentally unfit for self-rule B. Walter Lippmann published Public Opinion and The Phantom Public, rejecting the idea of applying “intelligence” to social problems C. Voter turn out has decreased since the late 19th century 1. Attributed to the consolidation of one-party politics in the South, or a long period of Republican domination in national elections II. The Republican Era A. The policies of government often reflected the pro-business ethos, meaning that politics was still heavily influenced by lobbyists and corporations B. For example, calls for lowering personal incomes and business profits were still circulating C. The Supreme Court remained conservative, meaning they favored laissez-faire III. Corruption in Government IV. V. A. Warren. G Harding - taking office as president in 1921 - his administration was one of the most corrupt 1. Harding’s cabinet members were cronies who used their offices for their own private gain a) Secretary of the Interior Albert Fall accepted $500,000 from private businessmen to whom he leased government oil reserves in Wyoming b) Fall would be the first cabinet member in history to be convicted of a felony The Election of 1924 A. Calvin Coolidge won the election in 1924 by a landslide against John W. Davis, a Wall Street lawyer B. Coolidge vetoed the McNary-Haugen bill, which would have helped farmers C. ⅙ of the electorate voted for Robert La Follette, who ran as the candidate of a new progressive party that called for an increase in taxes 1. Coolidge saw that as a blueprint for “communistic and socialistic” America Economic Diplomacy A. A lot of the foreign policy was conducted through private economic relationships rather than governmental action; for example, New York bankers extended their loans globally B. American industrial firms established plants overseas to supply the world market and take advantage of inexpensive labor C. Red Line Agreement (1928) - British, French, and American oil companies divided oil-producing regions in the Middle East and Latin American among themselves The Birth of Civil Liberties I. The “Free Mob” A. There was also a rise of censorship during the 1920s to books, movies, etc. B. Thus, filmmakers adopted the Hays code, which essentially prohibited movies from depicting nudity, long kisses, adultery, etc. 1. Filmmakers hoped that self-censorship would prevent censorship from local governments C. Thus they felt they were restrained of freedom of expression even moved to different countries like France II. A “Clear and Present Danger” A. Justice Oliver Wendell Holmes declared that the First Amendment did not prevent Congress from prohibiting speech that presented a “clear and present danger III. test”... in other words, you can’t go into a movie theater and shout there’s a fire and cause panic B. Schenck v. United States was the Supreme Court case that set this doctrine into stone 1. Schenck distributed antidraft leaflets through the mails C. Effectively, this upheld the conviction of Eugene V. Deb The Court and Civil Liberties A. However, later on, Holmes would begin to dissent, setting a precedent that the 14th amendment obligated states to refrain from unreasonable restrains on freedom of speech and press B. Civil liberties were slowly being born during the 20s and 30s The Culture Wars I. The Fundamentalist Revolt A. Fundamentalist launch a campaign to rid the Protestant denomination of modernism in contact with new individual freedoms that seem to contradict traditional morality B. One of the most popular preachers was Billy Sunday, a baseball player C. Fundamentalist supported prohibition, which many Americans did not support because they viewed it as a violation of individual freedom II. The Scopes Trial A. Scopes a teacher, violated state law for teaching Charles Darwin’s theory of evolution B. Two sides: 1. Fundamentalist Christians - believing that this teaching contradicts the bible 2. Scope’s defenders - wanted to test the constitutionality of the 1st amendment C. Clarence Darrow defended Scopes and even asked William Jennings Bryan to stand as an “expert witness” on the Bible 1. Bryan was embarrassed as he couldn’t answer simple scientific questions 2. Overall, the jury found Scopes guilty but was overturned by the Tennessee Supreme Court D. This was a battle between science and Christianity, and in the end, Fundamlists retreated many years from battles over public education III. The Second Klan A. The New Klan surged in the early 1920s, after a lynching in 1915 B. The difference is that these Klan are now in parts of the North and West IV. Closing the Golden Door V. VI. VII. VIII. IX. A. Klan influence faded after 1925, when its leader in Indiana was convicted of assaulting a young woman B. Cable Act of 1922 - overturned the 1907 law requiring American women who married foreigners to assume the citizenship of the husband C. “Golden door” was basically the idea that prior to WWI, any white person can become a citizen by passing through the “golden door” D. However, more lenient immigration policies became popular during the 1920s: 1. Because of cheap labor provided by the immigrants E. Many quotas were set in place limiting the number of immigrants able to come into the country (Asians were barred, some areas like CA who needed farmers had no limits, etc) F. “Illegal aliens” Race and the Law A. These policies (immigrant ones specifically) reflected how to race as a determinant of public policy Pluralism and Liberty A. Some Americans attempted ot challenge the idea that some people were unfit to be citizens B. Horace Kallen coined the phrase “cultural pluralism” which glorified ethnic diversity rather than suppressing it C. This was not met with immediate support, however, and many cities still had ethnic enclaves with their own civic institutions Promoting Tolerance A. Immigrant groups asserted the validity of cultural diversity and identified toleration of difference -- religious, cultural, and individual -- as the essence of American freedom. The Emergence of Harlem A. Harlem became essentially “capitals” of Black Americans, famous for their dance halls, jazz clubs, etc. B. However, the real Harlem was a community of wide spread poverty and discrimination The Harlem Renaissance A. However, it was also a time where the Black communities were able to develop their own music, dance, art, fashion, literature, movies, politics that became mainstream The Great Depression I. The Election of 1928 A. Herbert Hoover was extremely influential/popular after WWI, making a name for himself -- considers himself a progressive II. III. IV. V. VI. VII. B. Because Coolidge did not want to run in the 1928 election, the Republican nomination was given to Hoover C. Democratic candidate was Alfred E. Smith, for Catholic to be nominated for a major party D. Hoover won in a landslide, however The Coming of the Depression A. Black Tuesday - the stock market crashed as people began to panic sell B. Other signs of depression have been occurring as well (stock market crash wasn’t the only cause for the depression): 1. Real-estate speculation, bank failing, mortgages foreclosed, etc. C. Thousands of business failed in the 1930s, and those that survived had to lay off workers Americans and the Depression A. American life transformed heavily and many ended up in poverty, searching for jobs (even outside the country), being evicted from their homes, etc Resignation and Protest A. Some people began to protest, for example, WWI veterans that were unemployed marched on Washington demanding the payment of a bonus due in 1945 -- they were driven away B. It also appeared that “communists” were the only one that was “employed” Hoover’s Response A. Hoover strongly opposed direct federal intervention, so he committed to “associational action” -- putting faith in voluntary steps by business to maintain investment and employment B. People saw Hoover as being out of touch with reality The Worsening Economic Outlook A. Hawley-Smooth Tariff, signed by Hoover, which raised the high taxes on imported goods made the situation worse as it also led to other countries increasing import taxes -- reducing international trade B. Signed laws creating the Reconstruction FInance Corporation, loaning money to failed banks, railroads, and other businesses C. Created Federal Home Loan Bank System - offered aid to homeowners threatened with foreclosure Freedom in the Modern World A. --