Wilson gave no guidance how to revert to a peacetime economy
Returning veterans found lives in disarray
Race riots erupted reflecting tensions of competitive labor
Lost more Americans in WWI than any other war (except Civil War)
Some even believed that the American intervention in WWI was set up under false pretenses
Returning veterans found no suitable employment for them when they returned
Vets found housing, autos, and consumer goods in short supply = huge price spikes
Doubled the cost of living from what it had been prewar
1918 Spanish “Flu” led to 675,000 Americans dead (22 million worldwide)
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Postwar Economy & Instability
Bolshevik Revolution in Russia raised concerns of political violence in America - letter bombs were mailed to countless political figures
Attorney General A. Mitchell Palmer would conduct the “Palmer Raids” – federal gov’t raided the properties of suspected communists in America = mass deportation of immigrants
Popular at the time, their constitutionality is now questioned
Final years of Wilson’s presidency saw all these problems
Sufferings of war
Disillusionment over botched settlement (Treaty of Versailles)
Economic chaos
Widespread strikes and riots
Terrifying epidemic (1918 Spanish Influenza)
Upsurge of militant radicalism
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Harding Administration
Pursued conservative economic policies
High tariffs, low taxes, reduced federal spending, assistance for disabled soldiers and farmers
Andrew W. Mellon, Harding’s Secretary of the Treasury– responsible for immense economic growth of 1920s (economy expanded by 42%, national debt halved, America produced half of world output!)
Advocated for immediate reduction of taxes; argued that excessive taxation deterred economic investment
Low interest rates (set by federal reserve bank) stimulated massive consumer spending; banks willing to loan!
Harding reversed Wilson’s racist policies
Opposed exclusion of blacks from federal positions, spoke out against lynching in the South
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1920s Economy & Culture
Automobile industry – central role in economy & highway construction
Henry Ford – Model-T; made automobiles affordable
cost-cutting and high wages created stability
Perfection of assembly line – mass construction
“Modern” America Emerges
Refrigerators, washing machines, vacuums
Mass communication (radio) – new national identity; “modern
Fueled by intrigue of celebrities and professional sports figures (Babe Ruth); emergence of motion pictures (movies), and uniquely American music (jazz)
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1920s Culture
Charles Lindbergh’s (“Lucky Lindy”) 1927 solo flight across the Atlantic ocean
the first of its kind – represented emergence and power of new mass media
New York to Paris – reward money; four previous pilots had perished attempting it
Lindbergh successful – became national hero!
Power of mass communications had drawbacks - power to sensationalize and manipulate public opinion
Had a larger welcome home than WWI veterans
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1920s Culture
The Backlash to Modernity
Revival of Ku Klux Klan (anti-Catholic/Jewish, millions of members)
Religion vs. Science - Scopes Trial (1925)
John T. Scopes on trial for violating state law against teaching Darwinian evolution
Trial becomes a circus w/ national attention
High-profile lawyers (Clarence Darrow vs. William Jennings Bryan)
Scopes found guilty, reversed on technicality
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1920s Culture
Boom in advertising
newspapers, magazines, radio broadcasts, movies, billboards
Prohibition - America Goes “Dry”
Temperance movement & Progressives – banned all alcohol for consumption (18th amendment ratified in 1919)
While “noble” in scope (Herbert Hoover), prohibition =failure
Rise of organized crime (mobsters like Al Capone) and emergence of illegal bars called “speakeasies” led to blossoming murder and crime rates in American cities
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Land of Hope: Ch. 16
(From Boom to Bust)
9th Grade Humane Letters I
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Harding Flaws & Death
Like Grant, surrounded himself with some corrupt officials
Bad appointments = Charles Forbes (Veterans Bureau), Albert Fall (Interior), Harry Daugherty (Attorney General)
After his unexpected death (heart attack), scandals broke out
most infamous – Sec. of Interior Albert Fall attempted to lease oil reserves to private interests for $400,000 secret payoff (Teapot Dome Scandal)
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Harding Continued: Calvin Coolidge & Herbert Hoover
Calvin Coolidge Presidency (1923-1929)
Popular president, continued policies of Mellon & Harding; famously quiet, known as “Silent Cal”
Herbert Hoover & Stock Market Crash (1929)
Sworn in at a time of unparalleled prosperity
“Rags to riches” story; wealthy man, background in government
Political realignment taking place in late ‘20s
1924, Democrats couldn’t even agree to condemn the KKK
Al Smith, 1928 – Democrat, Catholic
Aligning Catholics, Southern Democrats, farmers, working class
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Herbert Hoover & Stock Market Crash (1929)
Fall, 1929: market in sudden decline; beginning of Great Depression
Black Thursday/Tuesday: value of shares of stock in companies drops significantly.