America in the 1920's - Causes

CAUSES: 

• US OPINION AGAINST TANGLING IN US AFFAIRS - DIDN'T JOIN LON - DIDN'T WANT MORE MEN TO DIE AND MORE MONEY TO BE SPENT
• HAD MADE MONEY FROM WARTIME
• WARREN HARDING ELECTED - REPUBLICAN - WANTED ISOLATIONISM
• REJECTED TREATY OF VERSAILLES

• LEAD TO ATTEMPTS TO CONTROL IMMIGRATION:
  • AMERICA WANTED TO KEEP COUNTRY TO JUST WHITE ANGLO-SAXON PROTESTANTS
  • FEARED NEW IMMIGRANTS WOULD TAKE JOBS OR BE COMMUNISTS
  • ENGLISH TESTS
  • EMERGANCY QUOTA ACT - 3% PEOPLE FROM COUNTRY ALREADY LIVING IN US
  • NATIONAL ORIGINS ACT 1924 - REDUCED TO 2% OF POPULATION IN 1890
  • REDUCED TO 150,000 AND IMMIGRATION FROM ASIA STOPPED IN 1929
• LEAD TO TARRIFF POLICY - KEPT FOREGN GOODS OUT OF US ECONOMY
  • FORDNEY MCCUMBER ACT - HIGHEST TARRIFFS EVER - AVERAGE DUTY 40%
• KEPT USA OUT OF EUROPEAN AFFAIRS
  • WILSON WANTED USA TO JOIN LON 
  • HARDING ELECTED - WANTED 'AMERICA FIRST' - REJECTED TREATY
  • HARDING REPUBLICAN - ISOLATIONISTS - DID NOT WANT TO SPEND AMERICAN MONEY OR LOSE AMERICAN LIVES OVER 'DESTRUCTIVE FORCES OF THE OLD WORLD'

• BOOM - PRODUCTS PRODUCED MORE QUICKLY AND EASILY
  • PRICES WENT DOWN AND WEDGES WENT UP
  • BY 1929, CARS WERE WORTH LESS THAT THREE MONTHS PAY FOR AVERAGE WORKER
  • ALLOWED PEOPLE TO BECOME MORE WEALTHY
  • ALLOWED INDUSTRIAL PRODUCTION TO ALMOST DOUBLE WITHOUT EXTRA WORKFORCE NEEDED
  • PRICES REDUCED FROM 950 DOLALRS IN 1909 TO 290 DOLLARS IN 1928
  • ASSEMBLY LINE - EACH WORKER HAD OWN JOB - CAR PRODUCED IN 93 MINUTES INSTEAD OF 14 HOURS
• BOOM - MILLIONS WORKED IN INDUSTRY
  • 4 MILLION IN MOTOR INDUSTRY
  • A LOT OF PEOPLES LIVES DEPENDED ON MASS PRODUCTION
  • MASS PRODUCTION BOOMING - OTHER INDUSTRIES BENEFITED E.G. FASHION
• BOOM - PRODUCTS MORE ACCESSABLE
  • CANNED FRUIT AND VEG MORE THAN DOUBLED OVER 20'S
  • TELEPHONES DOUBLED

• REGIONAL GRIDS
  • LIGHT AND POWER COMPANIES - SMALL LOCAL COMPANIES BECAME LARGE REGIONAL GRIDS
  • 1930 - 10 LARGE COMPANIES CONTROLLED 72% OF US ELECTRIC POWER
• ADVERTISING
  • BOOM IN ADVERTISING - BILLBOARDS, MAIL ORDER CATALOGUES, NEWSPAPERS, RADIO
  • FASHION INDUSTRY BOOMING BECAUSE OF MASS PRODUCTION - ADVERTISING
• CONSUMERISM 
  • BIGGER INDUSTRIES BECAME BIGGER AS THEY BOUGHT UP SMALLER BUISNESSES
  • CHAIN STORES APPEARED E.G. WOOLWORTHS
  • END OF 20'S - 200 LARGEST CORPORATIONS OWNED 20% OF NATIONS WEALTH

• SHARE PRICES ROSE MASSIVELY
  • INVESTORS COULD BUY SHARES OF COMPANIES AND SELL THEM FOR HIGHER PRICE - MADE PROFIT
  • SHARE PRICES INCREASED BY ABOUT 300% OVER THE 1920'S
• ALLOWED PEOPLE TO BUY SHARES 'ON THE MARGIN'
  • MEANT THAT INVESTORS COULD BORROW MONEY TO PAY FOR SHARES
  • INCREASED AMOUNT OF PEOPLE BUYING SHARES - SHARES COULD BE SOLD MORE EASILY
• BANK LOANED MONEY THEY DIDN'T HAVE
  
  • CONFIDENT PEOPLE WOULD PAY IT BACK BEFORE COSTUMERS WANTED TO WITHDRAW SAVINGS
  • PEOPLE ABLE TO BURROW FROM BANK TO BUY SHARES TO BE SOLD FOR HIGHER PRICE
• PROSPERITY - PEOPLE SOLD ON SHARES FOR HIGHER PRICES
  • INVESTORS MADE MONEY
  • MARKET BOOMING - LOADS OF PEOPLE BUYING - LOT'S SELLING FOR HIGHER PRICES

• AMERICAN GOODS CHEAPER - HELPED AMERICAN INDUSTRIES
  • MORE PEOPLE BOUGHT GOODS MADE BY AMERICAN INDUSTRIES - HIGHER DEMAND
  • RESTORED HIGH RATES IMPOSED BEFORE WWI
  • PROTECTED BUISNESSES FROM FOREIGN COMPETITION
• INTERNATIONAL RELATIONS DAMAGED
  • OTHER COUNTRIES RESPONDED WITH AMERCAN TARRIFFS
• HELPED END OPPOSITION FROM FARMERS TO POLICY OF PROTECTION
  
  • ALSO PUT HIGH TARRIFFS ON FARMING PRODUCTS
  • FARMERS EARNED MORE MONEY
• GAVE PRESIDENT POWER TO RAISE OR LOWER TARRIFFS
  • OUT FO 37 TIMES VARIED, RAISED 32 TIMES
• LAISSEZ AFFAIR - GOVERNMENT INTERFERED AS LITTLE AS POSSIBLE WITH BUISNESSES
  
  • PEOPLE KEPT OWN MONEY, THEY WOULD SPEND IT ON AMERICAN GOODS - GOOD FOR ECONOMY
  • WEALTHY PEOPLE WOULD INVEST IT BACK IN INDUSTRY
• ALLOWED DEVELOPMENT OF TRUSTS - COMPLETE CONTROL OF VITAL SECTOR OF INDUSTRY
  
  • PEOPLE OF AMERICA KNEW BEST - 'CAPTAINS OF INDUSTRY' - PROSPERITY

• ADVERTISERS USED WHAT WAS LEARNED FROM WARTIME PROPAGANDA
  • EXPLOSION OF TECHNIQUES - BILLBOARDS, MAIL ORDER CATALOGUES ETC.
  • PRODUCTS MORE KNOWN OF - MORE CONSUMERS
  • PEOPLE HAD MORE MONEY - MORE PEOPLE BOUGHT PRODUCTS - COMPANIES MORE MONEY
• ENOURMOUS BOOM IN CONSUMER GOODS
  
  • ENCOURAGED AMERICANS TO SPEND MONEY ON GOODS
• GOODS COULD BE BOUGHT ON HIRE PURCHASE
  
  • 'BUY NOW, PAY LATER' SCHEME
  • AMERICANS SPENT MONEY THEY DIDN'T HAVE ON THINGS
  • 8 OUT OF 10 RADIOS BOUGHT ON CREDIT
  • BOOM IN SALES - INCREASED DEMAND IN FACTORIES
• INCREASED DEMAND IN FACTORIES
  
  • HIRE PURCHASE - MORE PEOPLE AFFORD PRODUCTS - MORE BOUGHT
  • INCREASED DEMAND IN FACTORIES - MORE WORKERS EMPLOYED AND PAYED
  • WEDGES WENT UP - PEOPLE COULD AFORD WHAT THEY OWED

• THE ROARING 20'S
  • PEOPLE HAD A LOT OF MONEY - SPENT IT ON ENTERTAINMENT
• JAZZ BECAME POPULAR
  
  • DEVELOPED OUT OF RAGTIME BLUES AMOUNG BLACK PEOPLE IN SOUTH USA - SPREAD THROUGHOUT USA - MUSICIANS GAINED SELF RESPECT AND ADMIRATION
  • JAZZ CLUBS E.G. COTTON CLUB - VISITED A LOR BY YOUNG PEOPLE - SHAKING OFF TRADITIONS
  • BLACK MUSICIANS E.G. DUKE ELLINGTON FAMOUS
• AVAILABILITY OF RADIO - MUSIC AND SPORT SPREAD AND SHARED EASILY
  
  • BY 1929 OVER 10 MILLION HOMES HAD A RADIO
  • E.G. BASEBALL, BOXING - PEOPLE HAD MORE TIME, MEANS OF TRAVEL, MONEY TO WATCH GAMES
• NEW DANCES E.G. CHARLESTON
  
  • SEXUALLY SUGGESTIVE - FROWNED UPON BY OLDER GENERATION
• NEW CRAZES - DANCE MARATHONS, RECORD BREAKING ETC.
  

• 110 M GOING TO CINEMA EACH WEEK BY 1929
  • LATE 20'S FILMS SILENT
  • SOME ROMANTIC, SOME COMEDY
  • PIANO PLAYERS EMPLOYED
• BIG FILM COMPANIES E.G. PARAMOUNT DEVELOPED
  
  • STUDIOS CENTRED IN HOLYWOOD - SUNNY, CLOSE TO MOUNTAIN AND DESSERT SCENERY
  • LARGE PUBLICITY DEPARTMENTS HIGHLIGHTED STAR ACTORS
• THE JAZZ SINGER
  
  • FIRST NON SILENT FILM - SILENT SCREEN STARTED TO ADAPT TO CHANGES
  • UNSUCCESSFUL - VOICES UNATTRACTIVE

• POORLY DISTRIBUTED WEALTH
  • 1929 - 1/3 OF NATIONS WEALTH SHARED BY 5% OF POPULATION
  • NATIONAL INCOME OF USA BIGGER THAN BRITAIN AND 21 OTHER COUNTRIES PUT TOGETHER
  • TREMENDOUS WEALTH BUT SOME EXTREME POVERTY
• BLACK PEOPLE
  
  • 10% POPULATION - MOST LIVED IN MISERY AND POVERTY - SEEN AS INFERIOR RACE
  • MANY LIVED IN SOUTH - LIVING CONDITIONS APPALLING
  • POOR IMMIGRANTS - NOT WHITE - SEEN AS THREAT TO USA LIVING STANDARDS AND AGRICULTURE
• INFERIOR WHITE GROUPS
  • WORKERS IN OLD INDUSTRIES E.G. COAL LEATHER AND TEXTILES EXPLOITED
  • E.G. COAL STRIKE 1928 - MEN $18, WOMEN $9 - $48 BELIEVED TO BE MINIMUM - MAJORITY PAID LESS
  • ESTIMATED 42% LIVED BELOW POVERTY LINE - DIDN'T HAVE MONEY NEEDED FOR NECESSITIES
  • 1929 - 71% ANNUAL INCOMES UNDER $2,500 
  • CHILDREN EXPLOITED - 2 MILLION 14-15 YEAR OLDS - 11 HOURS A DAY - VERY LOW PAY
• FARMERS
  • FARM INCOME DROPPED FROM %22 TO $13 BILLION BETWEEN 1919 AND 1928
  • OVERPRODUCTION - MACHINERY - TOO EFFICIENT - PRODUCING SURPLUS THAT COULDN'T BE SOLD

• 1917 LITERACY TEST 
  • FAVOURED THOSE FROM NORTHERN AND WESTERN EUROPE - MOSTLY WHITE AND PROTESTANT
  • INEFFECTIVE - FEAR THAT MILLIONS OF IMMIGRANTS WOULD FLOOD TO USA AFTER WAR ENDED
• 1921 - EMERGENCY QUOTAS ACT
  
  • NUMBER OF PEOPLE ADMITTED TO USA IN ANY YEAR LIMITED TO 3% OF ALL EMIGRANTS FROM GIVEN COUNTRY WHO WERE RESIDENT OF USA IN 1910
  • FAVOURED N AND W EUROPEANS - EMMIGRATED IN LARGEST NUMBERS OVER LAST 200 YEARS
• 1924 - NATIONAL ORIGINS ACT
  
  • 3% REDUCED TO 2%
  • YEAR OF RESIDENCY PUSHED BACK TO 1890 - SIGNIFICANT AS HUGE INCREASE OF IMMIGRANTS BEFORE WWI FROM RUSSIA, ITALY, TURKEY, GREECE
  • OVERALL NUMBER OF EUROPEAN IMMIGRANTS RESTRICTED TO 150,000

• SEGREGATION
  • BLACKS GAINED FREEDOM FROM SLAVERY IN 1860'S - STILL SUFFERED FROM DISCRIMINATION
  • SEGREGATION LEGAL IN S STATES WHERE MOST BLACKS LIVED - WORT JOBS/HOUSES, COULDN'T EAT/TRAVEL WITH WHITES, COULDN'T EXPACT FAIR TREATMENT IN COURT
  • MARRIAGE BETWEEN BLACK AND WHITES FORBIDDEN
• JIM CROW LAWS 1896
  • US SUPREME COURT GAVE LEGAL APPROVAL FOR JCL - TREATING BLACKS AS INFERIOR - WHITES COULD PROTECT WAY OF LIFE - EXPLOIT THOSE RACIALLY INFERIOR
  • MEANT 1M LEFT SOUTH TO MIGRATE TO N - JOBS AVAILABLE IN EXPANDING CITIES E.G. FACTORY WORK
  • CONDITIONS LITTLE BETTER - BLACKS FIRST TO LOSE JOBS AND PAYED LEAST
  • GHETTOS GREW IN CITIES E.G. NY
• KKK
  
  • PREACHED INTOLERANCE - SPREAD FEAR AMOUNG BLACKS - MANY WHITE PEOPLE JOINED - VALUES
  • ORIGIONALLY FORMED 1866 - DISBANDED AND REFORMED IN 1915 - OPPOSED TO ALL FOREIGNERS
  • 1920-25 - 5 MILLION MEMBERS - JUDGES, POLICEMEN, POLITICIANS
  • SOME JOINED - EXCITEMENT, SOME FEAR OF CINSEQUENCES, SOME BELIEVED DEFENDING USA 
  • KLANSMEN MET IN SECTRET - NIGHT - PARADED DURING DAY

• WORE WHITE HOODS
• CARRIED USA FLAGS AND BURNING CROSSES DURING NIGHT TIME MEETINGS
• TALKED IN CODE - KLONVERSATION
• BOOK OF RULES - KLORAN
• BLACK PEOPLE FEARED KKK ACTIVITIES - SUFFERED VIOLENCE E.G. BEATING, ****
• LYNCHING, MURDER ON SLIGHTEST SUSPICION OF CRIME COMMITTED
• 1925 - SCANDAL - DAVID STEPHENSON FOUND GUILTY OF KIDNAPPING, **** AND MURDER OF WOMAN ON CHICAGO TRAIN - LIFE INPRISONMENT
• INFLUENCE DECREASED, MEMBERSHIP DWINDLED BUT RACISM STAYED STRONG

• DRINKING ALCOHOL PROHIBITED BY LAW IN USA IN 1920'S
  • JAN 1919 - AMENDMENT TO CONSTITUTION PASSED THAT ALL ALCOHOLIC DRINKS FORBIDDEN
  • 1920 - VOLSTEAD ACT - 0.5% ALCOHOL OR MORE - LIQUOR - FORBIDDEN
  • ANTI SALOON LEAGUE - CAMPAIGNED AGAINST ALCOHOL MANY YEARS PRE - POVERTY STRICKEN HOMES SUFFERED THROUGH ALCOHOLIC ACTIVITIES OF FATHER - BY 1914, 12 STATES DRY
  • WWI - EVILS OF ALCOHOL STRESSED - ABSENTEEISM FROM WORK - GERMAN BEER BRANDS STRESSED NOT TO BUY - PATRIOTIC
  • ORGANISATIONS AGAINST PROHIBITATION NOT AROUND UNTIL 1918 - AAPA SET UP - CLAIMED NEEDS FOR ALCOHOL FOR MEDICINAL PURPOSES
  • 17 JAN 1920 - LAW CAME INTO PLACE - HUGE AMOUNTS OF ALCOHOL PURCHASED BEFORE HAND - PEOPLE WISHED TO CARRY ON DRINKING
  • LAW CAME INTO FORCE WITHOUT MAJOR PROTESTS - EXPECTED SEA OF DRUNKENESS ON LAST NIGHT OF LEGAL DRINKING EXPECTED NOT SEEN
  • THOUSANDS OF CHURCHES CAMPAIGNED FOR - 'THE DEMON DRINK' - LAW HELP CUT DOWN SOCIAL ABUSES FROM ABSENTEEISM, NEGLECT AND DRUNKENNESS
  • 2.5B DOLLARS SPENT ON ALCOHOL - THREE TIMES WHAT IS SPENT ON EDUCATION

• PROBLEMS WITH ENFORCEMENT
  • PROHIBITION AGENTS APPOINTED - FAR TOO FEW
  • SPEAKEASIES APPEARED IN BASEMENTS OR DISGUISED AS JAZZ CLUBS
  • 30,000 SPEAKEASIES IN NY BY END OF DECADE - 200,000 IN WHOLE OF USA
  • 5,000 PEOPLE A YEAR DIED FROM DRINKING MOONSHINE
  • ALCOHOL SMUGGLED ACROSS USA/MEXICAN BORDERS - BOOTLEGGERS - CARRIED ALCOHOL IN KNEELENGTH BOOTS - SOLD IT AT HIGH PRICES
  • PROHIBITION AGENTS HOPELESSLY OUTNUMBERED - SOME WENT TO ELABORATE LENGTHS E.G. MOE SMITH WORE DISGUISES - ENTERED ILLEGAL BARS AS BUS CONDUCTORS, STUDENTS ETC. - RAIDED 3,000 SPEAKEASIES, ARRESTED 4,900 PEOPLE, CONFISCATED 3 MILLION BOTTLES OF MOONSHINE IN FIRST 5.5 YEARS OF PROHIBITION

• GANGSTERS
  • SELLING ALCOHOL BECAME BIG BUISNESS - GANGSTERS OPERATING IN CITIES CONTROLLED MUCH OF TRADE
  • SUPPLIED BOOZE, SET UP SPEAKEASIES, RAN 'PROTECTION RACKETS' (THREATENING TO DAMAGE PROPERTY UNLESS MONEY RECIEVED TO PROTECT IT)
• AL COPONE
  • GAINED CONTROL OF CHICAGO - BRIBING LOCAL OFFICIALS, POLITICIANS, POLICE
  • DIDN'T FEAR ARREST - OPERATED OPENLY
  • EMPLOYED UP TO 1,000 MEN IN PRIVATE ARMY
  • BUISNESS ACTIVITIES RECKONED TO BE WORTH $60M - $100M A YEAR
  • 227 MURDERS IN 4 YEARS - NO ONE ARRESTED - E.G. VALENTINES DAY MASSACRE 1929 - AL COPONES GANG DISGUISED AS POLICEMEN AND GUNNED DOWN 6 MEMBERS OF RIVAL GANG
• END OF PROHIBITION
  
  • NOT WORKING - ORGANISED CRIME, SPEAKEASIES, BOOTLEGGERS, MOONSHINE
  • WALL STREET CRASH, GREAT DEPRESSION - MILLIONS UNEMPLOYED - DRINKS INDUSTRY PROVIDE JOBS FOR UNEMPLOYED
  • 1932 ELECTION - ROOSEVELT PROMISED TO REPEAL PROHIBITION LAW - 21ST AMENDMENT 1933

• FLAPPERS
  • 1920'S - YOUNG WOMEN GAINED FREEDOM
  • GREATER WEALTH - MORE OPPERTUNITIES FOR LEISURE
  • FASHIONS CHANGED CONDUCT OF MIDDLE CLASS GIRLS - SHOCKED PARENTS - FLAPPERS
  • CUT HAIR SHORT, SMOKED IN PUBLIC, WORE RED LIPSTICK, SHORT SKIRTS
  • STAYED OUT LATE DANCING - AGE OF FRIVOLITY - KEEN TO CAST ASIDE SOCIAL RESTRAINTS

• OVERPRODUCTION
  • 1900 TO 1920 - FARMING BECAME EFFICIENT - FARMERS PRODUCING SURPLUS NO ONE WANTED
  • NEW INDUSTIES OVER PRODUCING GOODS - MANY COULDN'T AFFORD - NOT SHARING PROSPERITY
• LACK OF CREDIT CONTROL
  • BANKS LOANED MONEY THEY DIDN'T HAVE - RELYING ON SHARE PRICES GOING UP
  • HIRE PURCHASE - PAYING BACK RELIED ON WEDGES GOING UP
• UNEVEN DISTRIBUTION OF WEALTH
  • FARMERS, BLACKS, MINORITY GROUPS DIDN'T SHARE PROSPERITY - EXPLOITED
  • 42% BELOW POVERTY LINE - NO NEW JOBS - INDUSTRIES MECHANISING
  • PEOPLE COULDN'T AFFORD CARS BEING PRODUCED - OVER PRODUCTION
• TARRIFF POLICY
  • REPUBLICAN POLICY - DIDN'T INTERFERE - DID NOTHING ABOUT OVERPRODUCTION, POVERTY OR UNEMPLOYMENT
  • NOT ENOUGH PEOPLE SHARING IN BOOM TO BUY PRODUCTS BEING PRODUCED - NOT ENOUGH MONEY
  • FARMERS LOSS OF INCOME $22B TO $13B 1919-28 - LOSS OF EUROPEAN MARKET DUE TO TARRIFF BARRIERS MAKING EUROPE POORER
  • LIASSEZ-FAIRE - ENCOURAGED LACK OF CREDIT CONTROL

• EVENTS
  • MARCH 1929 - HOOVER SAID 'THE POOR MAN IS VANISHING AMOUNG US'
  • JUNE 1929 - OVERPRODUCTION FELT - INDUSTRIES CUT BACK 
  • SEPT - INVESTORS BEGAN TO WORRY ABOUT PRICES - CRASH - SOLD SHARES - BANKS HELPED RESTORE STABILITY BY BUYING VAST NUMBERS OF SHARES
  • OCT 29 - 13 MILLION SHARES SOLD ON WALL STREET STOCK EXCHANGE - BANKS COULD NO LONGER INTERVENE - PRICES PLUMMETED AS NO ONE WANTED TO BUY
  • 29 OCT - INVESTORS SOLD SHARES FOR WHATEVER COULD GET
• IMMEDIATE EFFECTS
  
  • BIG INVESTORS LOST UP TO $40 MILLION
  • SMALL INVESTORS HAD BURROWED MONEY FROM BANKS WITH HOMES AS SECURITY - BANKS COULD REPOSSESS HOMES - EVICT INHABITANTS
  • SOME COMMITED SUICIDE
  • OVER 100,000 COMPANIES BANKRUPT 1929-33
  • BANKS OUT OF BUISNESS - COULDN'T REPAY INVESTORS
  • UNEMPLOYMENT 12M BY 1932
  • HOOVERVILLES - HOMELESS BUILT TEMPORARY SHELTERS IN PARKS