the roaring 20's- how and why did the usa achieve prosperity

• the USA achieved a degree of prosperity never seen before
• it was the age of the ford motor, jazz, cinemas, the stock market boom and consumerism
• however prosperity only reached half the population
• poor workers like blacks and farmers had lifestyles that were greatly in contrast to the rich
• society was divided and increasingly violent through activites of groups like ' the KKK' and gangsters during prohibition

key words:

• prohibition: the period from 1920-1933 in the USA during which the manufacture, transportation and sale of alcohol for consumption were banned
• great depression: the largest worldwide economic downturn that started with the wall street crash in the USA in 1929

• when WW1 started the USA stayed neutral
• the war was regarded as a distent event and nothing to do with USA
• in the late 19th centry and early 20th USA became a melting pot for a mixture of immigrants mostly vor europe
• loyalties would certainly be divided
• the USA democrat president woodrow wilson hated the idea of war
• in early 1917 germay in desperation started its policy of unrestricted subs warfare in the atlantic
• meaning USA was forced to join the war in its own defence of its shipping
• it took a long time to train the US troops and organise essential equipment
• so it was only summer and autum of 1918 that they played an important part on the western front
• over 100,000 american soldiers, sailors and airmen were killed
• when the surviving troops started to return they were greeted as heroes but they painted a very different picture of fighting conditions from the romanticised version popularly believed by civilians

• Wilson was committed to USA playing a leading role in policing the treaty of versailles through active involvement in the league of nations
• however the mood of USA was rapidly changing
• most americans wanted to end the entanglements in european affairs not commitments towards keeping the peace in a divided continent

• in the 1920 presidential election Warren Harding the republican candidate was elected with 61% of the vote (the largest marjority in american history)
• his campaign included arguments in favour to return to normalcy a term he coined
• however it also defined the mood of many people who wanted life to return to what it had before the war
• in his opening speech he said 'we seek no part in directing the destinies of the world'
• the USA never joined the League of Nations a decision that had major consequences for europe
• America resumed its policy of isolationism(remaining aloof from european political commitments)
• not until august 1912 did USA offically declare the war which with Germay would be over
• during the 20's relations with most european countries were not good
• many of the victorious ones resented the fact that USA had taken so long to come to their aid
• during the war even when offically neutral until 1917 US business had sold armaments and food to britain and france
• the USA was able to export to areas of the world controlled by european colonial countries whilst those countries were totally focused on war
• by the end of the war USA had overtaked germany in the supply of chemical products
• US businesses also took the opportunity to develop new materials using plastics
• the old euopean intustrial countries took time in the 20's to refocus on international trade and then found thast USA had captured some of their markets

• Wilsons policy of encouraging free trade with USA was ended in 1922 when the Fordney-McCumber tariff put high traiffs (taxes) on all foreign-made goods sold in the USA
• this meant that american goods were cheaper and this helped american industries
• it also restored the high rates imposed before WW1 but also included farm products
• this helped to end the traditional opposition from farmers to the policy of protection
• the acts gave the president the power to raise and lower the rate as they thought necessary
• of the 37 time the rate was varied Harding and is successor Calvin Coolide raised it 32 times
• Harding wasnt the only american president to show faulty understanding of economics he stated og one occasion 'we should adopt a protective tariff of such a character ads will help the struggling  industries of europe to get on their feet'
• european countries soon retaliated by putting tariffs on american made goods