Economic Growth/Changes

America in the 1920’s

Election of 1920

• Warren G. Harding was the Republican Candidate
• Not very smart but “looked” presidential
• Calls for a return to normalcy

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Was a return to normalcy possible?

• The New Era
• The Jazz Age
• The Age of the Flapper
• The Prosperity Decade
• The Roaring 20’s

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Surviving a World War and Pandemic…..

So in short no - the 20’s becomes about smashing “norms”

social, economical, technological, cultural

After effects of a war and pandemic

Surviving a World War and Worldwide Pandemic Americans were ready to let loose and really have some fun.

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The economy and advent of “leisure” time helped Americans to indulge in these activities.

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20’s is all about breaking down social barriers

Economic Growth Goals of Harding�

• Reduce the National Debt
• Promote Growth
• Eliminate high taxes on the rich – the idea is that if they rich do not have to pay as much in taxes they would put the money back into the economy – Trickle Down Economics. (guess what – it does not work – this is what Reagan and W. Bush tried to do as well)

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Scandal hits Harding

• Harding’s cabinet was known as the Ohio gang – his poker buddies
• He did not understand many of the issues facing his presidency and the nation
• His corrupt friends used their positions to become wealthy through graft
• Sold government and hospital supplies illegally to private companies; took bribes

Teapot Dome Scandal

• Secretary of the Interior Albert B. Fall managed to get oil reserves transferred from the navy to his department and then leased the land to private oil companies
• Fall was also found to have received $400,000 in cash bribes
• He is convicted and sent to jail

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Harding dies

• “I have no trouble with my enemies – but my friends keep me walking the floor nights!”
• He dies of a stroke or heart attack in August 1923
• Calvin Coolidge, the VP becomes President

The Business of America is Business

Calvin Coolidge becomes President - favors policies that keep taxes down and business profits up

Goal - do not interfere in business, allow private enterprise to flourish

High taxes placed on imports so people would buy American made goods

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Impact of the Car

Write down ways in which the car would change the US:

What new jobs/industries would it create?

How would it impact culture?

How would it change the lives of people?

What if it was affordable - how does that impact the nation?

Impact of the Automobile

Changes the United States in MANY ways:

construction of paved roads for driving in all weather (Route 66 - Chicago to California)

New houses came with a driveway and perhaps a garage or carport (lawns were smaller)

Construction of gas stations, repair shops, shopping centers, motels, tourist campsites

Traffic Signals, Tunnels (Holland Tunnel - 1st underground tunnel connected NYC and Jersey City)

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Cultural Impact of Cars

Rural families were no longer so isolated

People could go into the city for shopping and entertainment

Allowed families to vacation in further away places

Gave women and young people more independence

Allowed workers to live further from their jobs

Cities began to spread out - urban sprawl

Automobile Industry provides an economic base in Ohio and Michigan

Cars began to become a status symbol.

80% of all the vehicles in the world were in the US

Standard of Living Increases

Between 1920 and 1929, US owned 40% of world’s wealth

People’s income began to go up and they spent that money on all the new modern conveniences

The Use of Electricity impacts the US

alternating electrical current enabled electricity to be more efficiently distributed throughout the US

Electric Irons, Refrigerators, stoves, toasters -- made work of women in the home easier.

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In Brief..what caused so much change?

Mass Production and purchase of cars, appliances, radio and film - new economy and new standard of living

Mass Entertainment - movies, radio, tv, sports linked the nation together in ways it had not been before – Mass Culture

Restraints loosened - social and gender norms shattered

United States became more connected

Youth Culture

For the first time, teens are in school - not working in factories

More leisure time - more time to have fun!

Weekends are now a thing!!!

Kids can get away from parental control with cars (it began with the invention of the bike)

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Rise of Leisure Time

5 day work week - people had more time

People could go to the movies, listen to music, go to clubs, go to sports events

Radio made sports accessible across the nation

Sports stars like Babe Ruth became household names

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Great Migration leads to Harlem Renaissance

Population changes in the North brought jazz, art and other forms of mass culture to all races.

People had time and were freer to indulge in more cultural activities

People felt pride and wanted to tell the stories of their journeys, culture, ancestors through art, music and literature.

African American culture is part of the Mass Culture

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The New Woman

Women broke social norms - they cut their hair short, smoked, drank, loosened social ideals

Dawn of Modern Ads

Goods needed to be sold - turned more and more to advertising

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use of psychology - what appeals to people, who to direct ads to

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what were once luxury items were now necessities

Economic Danger Looms on the Horizon...

Increasing gap in wages between managers and workers - gap between rich and poor widen

Uneven distribution of income – the rich get richer, poor get poorer

70% of Americans made less than $2,500 per year – 2500 was the min. needed for a decent standard of living.

Farmers never recover from the fall in prices post WWI

Consumer buying goods on credit

Banks merging and becoming too big

Unregulated buying and selling of NYSE