The USA Roaring 20s

Revision Cards on the USA Roaring 20s

HideShow resource information
  • Created by: Karimoja
  • Created on: 24-12-14 13:30

Achieving Prosperity in the 1920s

Achieving Prosperity in the 1920s

Isolationism - 1919

Causes

  • Americans didn't want more American's to be killed trying to keep the peace in Europe becaus they were rich
  • They had made money producing the goods Europe needed, but couldn't produce, during war time
  • They voted for Warren Harding who was a Republican and wanted to leave the Leauge of Nations
  • They also rejected the Treaty of Versailles

Consequences

  • Led to the Red Scare (keeping America exclusively for White Anglo Saxon Protestants) and to attempts trying to control immigration
  • Lead to a Tarrif Policy
1 of 10

Achieving Prosperity in the 1920s

Mass Production

  • Assembly lines were used to speed up production
  • Each person only needed to be qualified for one part
  • Henry Ford started it with the Model T being made every 10 seconds
  • Prices decreased, and it helped other industries

Consumer Industries

  • Advertisements tried to convince people to keep up with other people in their class/lifestyle
  • Hire Purchase was introduced meaning paying for things over a period of time
  • Mail order extended the market of goods beyod towns and cities

Republican Government policies

  • Laissez faire was introduced meaning leaving things alone
  • They didn't put controls on any industry or financial institutions
2 of 10

Tariff Policies

Tariff policies

Causes

  • Wartime boom – Leaders wanted the boom to continue
  • American wages – In Europe wages were lower and so products were cheaper unlike in America  but if tariffs were introduced Americans would buy USA products guaranteeing American jobs
  • Isolation – USA felt it didn’t need the rest of the world
  • Farming – Farmers were overproducing and wanted foreign crops out so they could sell and keep prices high
  • Tariffs - 1921 - Emergency Tariff – introduced on food imports
  • 1922 – Fordney McCumber Tarff – Placed higher tariffs on goods from countries with low 
  • 1922 – Fordney McCumber Tarff – Placed higher tariffs on goods from countries with low wages
  • Adjusted the tariff so the price was always higher than the US'

Consequences

  • Made life more difficult for poor people
  • Protected from foreign competition
  • Retaliatory tariffs – tariffs from other countries on American goods
  • Damaged global economy as America couldn’t trade

 

 

 

3 of 10

Achieving Prosperity in the 1920s

Achieving Prosperity in the 1920s

Purchases of shares

  • In the 1920s the price of shares rose by 500% and the amount of shareholders rose from 4 million to 20 million
  • People speculated and bought on the margin

 

Developments in entertainment

  • The Jazz music industry boomed
  • The movie industry boomed and by 1929 110 million were going
  • It became affordable and500 films were being filmed a year

 

 

4 of 10

Divided Society in the 1920s

Divided Society in the 1920s

Rich vs Poor (poverty)

  • The 3 main poverty stricken groups were the farmers, Black Americans and workers in old industries
  • 60% Americans lived below the poverty line earning less than $200 a year
  • Half of American people were farmers so there was overproduction causing food prices to drop and them to get lower pay
  • Laissez faire meant the government didn’t provide a welfare or security system for the poor
  • In some industries workers lost their jobs because the more efficient factories needed fewer workers
  • On the other side the rich were enjoying a care free life living in the cycle of prosperity
  • Increased demand for goods, causing increased production, causing increased employment, giving people more money

 

 

 

 

 

 

 

5 of 10

Divided Society in the 1920s

Divided Society in the 1920s

The Ku Klux Klan

  • An organisation of white supremacists who launched a crusade to ‘save’ the USA
  • Membership increased from 500 to 5 million between 1920 and 1925
  • They only accepted White Anglo-Saxon Protestants (‘true Americans’)
  • They felt their jobs were threatened by blacks and immigrants who could work for less
  • They attacked black people but were often protected by police and judges who were members of the clan

Flappers

  • Flapper girls were single young middle aged women who often had short bobbed hair and wore short dresses and engaged in active night life
  • They wore lots of makeup and were often dancers at night clubs
  • They rebelled against society and were looked down on by the older population

 

 

 

 

6 of 10

Divided Society in the 1920s

Divided Society in the 1920s

Prohibition

  • Prohibition was a law stating making, selling or transporting alcohol was illegal in the USA
  • It was caused by Poverty, Crime, Ill health, an Anti-German feeling, religious moral reasons and disrupted industry
  • The Anti-Saloon League wanted alcohol banned
  • It was not popular increasing illegal activity as people produced home-made alcohol which caused illness and death

Organised Crime

  • Secret bars called speakeasies were set up selling alcohol smuggled from bootleggers
  • Gangsters ran speakeasies and so gang murders increased as gangs fought for their ‘territory’
  • Al Capone was a celebrity gangster who murdered 100s of people
7 of 10

The US Stock Exchange Collapse 1929

The US Stock Exchange Collapse 1929

Over production

  • Demand fell when customers had consumer goods causing factories to lose money and staff meaning less people could afford consumer goods

Unequal Distribution

  • 60% of Americans were still below the poverty and they could not afford consumer goods

Tariff Policies

  • Americans couldn’t sell goods elsewhere due to the retaliatory tariffs

Speculation

  • People couldn’t pay back the money they were borrowing from the bank

Orange Umbrellas Threaten Showers


8 of 10

The US Stock Exchange Collapse 1929

The US Stock Exchange Collapse 1929

The Wall Street Crash

  • Confidence dipped in September 1929 causing share prices to fall
  • Investors panicked and sold shares leading to tumbling prices
  • Black Thursday – 13 million shares sold, prices were diving
  • Bankers sold their shares to cover losses levelling the market
  • Black Tuesday – 16 million shares sold leaving people broke

 Consequences

  • Cycle of depression – Reduced demand for goods caused reduced production caused increased unemployment caused less money to spend
  • Confidence in economy was destroyed
  • More than 100,000 businesses shut down between 1929 and 1933
  • There was a ‘run on the banks’ causing banks to collapseMany Americans lost all their money

 

 

9 of 10

Divided Society in the 1920s

Immigration controls

  • Millions of immigrants were living in America who were poorly educated and had very low wages. They were of 100 nationalities
  • White native born Americans were resentful of new arrivals and so they suffered increasing prejudice
  • 1917 – Immigrants had to take a Literacy test before they could enter
  • 1921 – An Emergency quota act began limiting the number of immigrants from each country to 3% of the amount in 1910
  • In 1924 the National Origins Act reduced this number to 2% and pushed the date back to 1890
  • 1927 – The quota from Europe was reduced to 150000 a year
  • By 1933 only 23,000 immigrants were entering America each year
  • Sacco and Vanzetti were 2 Italian immigrants  charged with the murder of 2 guards despite 107 immigrant witnesses proving them innocent
10 of 10

Comments

No comments have yet been made

Similar History resources:

See all History resources »See all The USA - twentieth century change resources »