Week 8 Chapter 24 The New Era, 1920-1929 Chapter 25 The Great Depression (Hoover) Week 8 Chapter 24 The New Era, 1920-1929 Chapter 25 The Great Depression

Week 8Chapter 24

The New Era, 1920-1929

Chapter 25The Great Depression (Hoover)

Week 8Chapter 24

The New Era, 1920-1929

Chapter 25The Great Depression (Hoover)

History 121

US History Since 1877

© 2009 Pearson Education, Inc.

The New Era, 1920-1929The New Era, 1920-1929

►Consumerism flourishesConsumerism flourishes advertising advertising CreditCredit economic (GNP) growtheconomic (GNP) growth

►US Gov’t foster business growthUS Gov’t foster business growth►Entertainment grows into big businessEntertainment grows into big business►Technology and middle class expandTechnology and middle class expand►New attitudes and lifestyles emergeNew attitudes and lifestyles emerge►Decade end with economic collapseDecade end with economic collapse

New Economic ExpansionNew Economic Expansion

►End of war causes economic decline (20-21)End of war causes economic decline (20-21)►Electricity spurs recovery & growth (22–29)Electricity spurs recovery & growth (22–29)

New goods for factory & homeNew goods for factory & home Installment plans stimulate consumptionInstallment plans stimulate consumption

►Business consolidation continuesBusiness consolidation continues Oligopolies control production, marketing, Oligopolies control production, marketing,

distribution, financedistribution, finance Oligopoly= small number of sellers dominate the Oligopoly= small number of sellers dominate the

market or industrymarket or industry►US Steel, General Electric dominate their fieldsUS Steel, General Electric dominate their fields

““New Lobbying;” Labor Unions & New Lobbying;” Labor Unions & FarmersFarmers

► Business & professional organizations lobby Business & professional organizations lobby government as special-interest groupsgovernment as special-interest groups US Gov’t lower taxes on wealthy & corporationsUS Gov’t lower taxes on wealthy & corporations Raises tariffs, ease regulationRaises tariffs, ease regulation

► Supreme Court voids minimum-wage laws & Supreme Court voids minimum-wage laws & restrictions on child labor; restrict strikesrestrictions on child labor; restrict strikes US Gov’t, states, & corporations act anti-unionUS Gov’t, states, & corporations act anti-union

► Farmers suffer rising debt because of falling Farmers suffer rising debt because of falling prices prices Overproduction/foreign competitionOverproduction/foreign competition

Harding (1921–1923) & Harding (1921–1923) & Coolidge (1923–1929)Coolidge (1923–1929)

► Republican presidents (1921–1933) symbolize Republican presidents (1921–1933) symbolize goodwill toward businessgoodwill toward business Spoils system and scandals (Teapot Dome) Spoils system and scandals (Teapot Dome)

undermine Harding’s administrationundermine Harding’s administration Anti-union Coolidge lowers taxes (esp. favors rich)Anti-union Coolidge lowers taxes (esp. favors rich)

► Begin US highway systemBegin US highway system► Veto farm assistanceVeto farm assistance► 1924 election: major candidates = pro-1924 election: major candidates = pro-

businessbusiness Progressive Party fails to revive national reformProgressive Party fails to revive national reform

►President Calvin Coolidge liked to hobnob with business leaders but also display President Calvin Coolidge liked to hobnob with business leaders but also display his Vermont background. He is shown here at his home in Plymouth, Vermont, in his Vermont background. He is shown here at his home in Plymouth, Vermont, in 1925, holding a bucket of maple syrup and sitting with Harvey Firestone of the tire 1925, holding a bucket of maple syrup and sitting with Harvey Firestone of the tire company on his right, Henry Ford on his left, and Thomas Edison on Ford’s left. company on his right, Henry Ford on his left, and Thomas Edison on Ford’s left.

Calvin Coolidge Memorial Room, Forbes Library, Northampton, MA

Reform; Indian Affairs; Reform; Indian Affairs; Women & PoliticsWomen & Politics

► Reform occurs at state and local levelsReform occurs at state and local levels Workers’ compensation, old-age pensionsWorkers’ compensation, old-age pensions Aid to poor, housing codes, zoningAid to poor, housing codes, zoning

► Indians suffer neglect by US Gov’t Indians suffer neglect by US Gov’t ignore groups that try to help Indians regain landignore groups that try to help Indians regain land

► Female groups devise tactics to lobby for Female groups devise tactics to lobby for help to working womenhelp to working women Pursuit of different goals fragment womenPursuit of different goals fragment women

► League of Women Voters v. feminist National Women’s League of Women Voters v. feminist National Women’s PartyParty

A Consumer SocietyA Consumer Society

► Purchasing power increases for manyPurchasing power increases for many Cost of living stable, while earnings increaseCost of living stable, while earnings increase

► By 1929, electricity in ⅔ of all homesBy 1929, electricity in ⅔ of all homes► Automobiles = vanguard of expanding Automobiles = vanguard of expanding

materialismmaterialism Even some workers purchase oneEven some workers purchase one Cars alter US life; symbol of social equalityCars alter US life; symbol of social equality

► US Gov’t sponsor emerging network of US Gov’t sponsor emerging network of roads/ highways so “automobility” feasibleroads/ highways so “automobility” feasible

FIGURE 23.2 Consumer Debt, 1920–31 The expansion of consumer borrowing was a key component of the era’s prosperity. These figures do not include mortgages or money borrowed to purchase stocks. They reveal the great increase in “installment buying” for such consumer durable goods as automobiles and household appliances.

9© 2009 Pearson Education, Inc.

Picture Research Consultants & Archives

Victrola Talking Victrola Talking Machine Company Machine Company

AdvertisementAdvertisement►The spread of electric The spread of electric service to households service to households gave families access to gave families access to new forms of new forms of entertainment, such as entertainment, such as recorded music. The recorded music. The Victrola Talking Machine Victrola Talking Machine Company, with its Company, with its trademark of a little fox trademark of a little fox terrier looking into the terrier looking into the horn of a gramophone, horn of a gramophone, became one of the world’s became one of the world’s most recognized most recognized advertisers, even after it advertisers, even after it was purchased by RCA in was purchased by RCA in 1929. 1929.

Finished automobiles roll off the moving assembly line at the Ford Motor Company, Highland Park, Michigan, ca. 1920. During the 1920s, Henry Ford achieved the status of folk hero, as his name became synonymous with the techniques of mass production. Ford cultivated a public image of himself as the heroic genius of the auto industry, greatly exaggerating his personal achievements.


Advertising & RadioAdvertising & Radio

►Businesses spend heavily on advertisingBusinesses spend heavily on advertising Use psychology, celebrities to increase salesUse psychology, celebrities to increase sales

►Radio emerges as Radio emerges as keykey advertising medium advertising medium US Gov’t rejects public funding of radioUS Gov’t rejects public funding of radio Programming focuses on entertainmentProgramming focuses on entertainment 1924, major candidates use radio for speeches1924, major candidates use radio for speeches

►Plumbing, electricity spread to urban workersPlumbing, electricity spread to urban workers►Workers use credit to purchase new goodsWorkers use credit to purchase new goods

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© 2009 Pearson Education, Inc. 14

A 1919 advertisement for Lucky Strike cigarettes featured the image of actress Billie Burke. Paid celebrity endorsements for consumer goods became a common practice in the post WWI years. Tobacco companies were among the most aggressive purveyors of this new advertising strategy.

Until 1924, Henry Ford had disdained national advertising for his cars. But as General Motors gained a competitive edge by making yearly changes in style and technology, Ford was forced to pay more attention to advertising. This ad was directed at “Mrs. Consumer,” combining appeals to female independence and motherly duties.


New Rhythms of Everyday New Rhythms of Everyday LifeLife

► Divide time into work, family, leisureDivide time into work, family, leisure Ratio changes as people have fewer children Ratio changes as people have fewer children Time at work also drops for manyTime at work also drops for many

► New appliances ease some household New appliances ease some household taskstasks Makes wives into household managersMakes wives into household managers

► Better nutrition/sanitation increase life Better nutrition/sanitation increase life expectancy for most, but expectancy for most, but notnot all people all people 60 years by 1930 from 54 years in 192060 years by 1930 from 54 years in 1920

The A&P grocery chain expanded from 400 stores in 1912 to more than 15,000 by the end of the 1920s, making it a familiar sight in communities across America. A&P advertisements, like this one from 1927, emphasized cleanliness, order, and the availability of name-brand goods at discount prices.



General Electric General Electric Company Company

AdvertisementAdvertisement►While electric appliances gave While electric appliances gave mothers and housewives more mothers and housewives more convenient ways to carry out their convenient ways to carry out their roles, producers tried to sell their roles, producers tried to sell their products by creating guilt among products by creating guilt among women who were concerned about women who were concerned about their families’ safety. Here, the their families’ safety. Here, the General Electric Company warns a General Electric Company warns a mother that she needs a GE mother that she needs a GE refrigerator if she is to be refrigerator if she is to be “conscientious” and “scrupulous” “conscientious” and “scrupulous” about giving her children about giving her children

wholesome and healthy food.wholesome and healthy food.

Age of PlayAge of Play

► Commercial entertainment expandsCommercial entertainment expands► Middle class participate in fadsMiddle class participate in fads

Mahjong, crossword puzzles, dance crazes, etc.Mahjong, crossword puzzles, dance crazes, etc.

► Spectator amusements (movies, sports) Spectator amusements (movies, sports) boomboom

► Motion pictures emerge as a leading US Motion pictures emerge as a leading US industryindustry Add sound & color (late 1920s)Add sound & color (late 1920s)

► To appeal to mass audience, make escapist To appeal to mass audience, make escapist spectacles, dramas, & comediesspectacles, dramas, & comedies


Sports Heroes;Sports Heroes;Movie Stars; Prohibition Movie Stars; Prohibition

►Professional baseball blossomProfessional baseball blossom Media glorify its suspense & unpredictability Media glorify its suspense & unpredictability ““Babe” Ruth symbolize heroes of 1920sBabe” Ruth symbolize heroes of 1920s

►Unique individuals in mass industrial Unique individuals in mass industrial societysociety Compare/contrast Valentino & LindberghCompare/contrast Valentino & Lindbergh

►After 1925, prohibition breaks downAfter 1925, prohibition breaks down Criminal groups (Capone) supply growing Criminal groups (Capone) supply growing

public demand for alcoholpublic demand for alcohol


Babe Ruth, baseball’s biggest star, shakes hands with President Warren G. Harding at the Opening Day of the brand new Yankee Stadium, Bronx, New York, April 4, 1923. The new celebrity culture of the 1920s routinely brought together public figures from the worlds of politics, sports, show business, and even organized crime.

►Standing beside his plane, the “Spirit of St. Louis,” shortly before takeoff on his solo Standing beside his plane, the “Spirit of St. Louis,” shortly before takeoff on his solo transatlantic flight, young Charles Lindbergh exhibits the self-reliance and determination transatlantic flight, young Charles Lindbergh exhibits the self-reliance and determination that made him one of the most revered heroes of the 1920s. Lindbergh’s feat signified a that made him one of the most revered heroes of the 1920s. Lindbergh’s feat signified a blend of new technology with old-fashioned individual effort. blend of new technology with old-fashioned individual effort.

Charles LindberghCharles Lindbergh

Picture Research Consultants & Archives.

Older Americans & Older Americans & Retirement; Social ValuesRetirement; Social Values

► More people living past age 60 and forced More people living past age 60 and forced retirements increase poverty among retirements increase poverty among elderlyelderly Europeans create pensions in early 1900sEuropeans create pensions in early 1900s

►US leaders reject these as socialisticUS leaders reject these as socialistic

Many states in 1920s adopt pensions & Many states in 1920s adopt pensions & retirement homes to reduce elderly povertyretirement homes to reduce elderly poverty

► New values with consumption and peer New values with consumption and peer groupsgroups

► Self-expression/personal freedom via Self-expression/personal freedom via clothingclothing


A woman in a man’s shirt and necktie wears a pair of Paul Jones knickers in this 1922 advertisement. Her boyish, almost androgynous look reflects the way that notions of the “new woman” intersected with the worlds of fashion and advertising.

Employment for WomenEmployment for Women

► Number of women in workforce continues to Number of women in workforce continues to increaseincrease 10.8 million working women (1930) 10.8 million working women (1930)

► Face job segregation & pay discriminationFace job segregation & pay discrimination► Most female workers singleMost female workers single

3.1 million wives work to help with consumption3.1 million wives work to help with consumption

► Many African, Japanese, & Mexican Many African, Japanese, & Mexican American wives work to help their families American wives work to help their families survive survive Work as domestics or rural laborersWork as domestics or rural laborers

►These charts reveal the extraordinary growth in clerical and professional These charts reveal the extraordinary growth in clerical and professional occupations among employed women and the accompanying decline in agricultural occupations among employed women and the accompanying decline in agricultural labor in the early twentieth century. Notice that manufacturing employment peaked labor in the early twentieth century. Notice that manufacturing employment peaked in 1920 and that domestic service fluctuated as white immigrant women began to in 1920 and that domestic service fluctuated as white immigrant women began to move out of these jobs and were replaced by women of color.move out of these jobs and were replaced by women of color.

Changing Dimensions of Paid Female Labor, Changing Dimensions of Paid Female Labor, 1910–19301910–1930

George Eastman House

Telephone Telephone Operator, Operator,

1920s1920s

►The expansion of The expansion of service-sector jobs and service-sector jobs and new technology new technology opened new opened new opportunities for opportunities for women in the 1920s. women in the 1920s. This telephone This telephone operator handled operator handled scores of phone calls scores of phone calls and monitored a huge and monitored a huge switchboard at the switchboard at the same time. Her dress same time. Her dress and jewelry contrasted and jewelry contrasted with the simpler styles with the simpler styles worn by factory worn by factory women, who had to be women, who had to be more careful in more careful in working with working with dangerous machines. dangerous machines.

Migration to Cities;Migration to Cities;African American Migration African American Migration

►Majority of Americans urban by 1920Majority of Americans urban by 1920 During 1920s, 6 million more leave farmsDuring 1920s, 6 million more leave farms Great Migration of blacks to urban North Great Migration of blacks to urban North

acceleratesaccelerates►1.5 million leave South, 1920s1.5 million leave South, 1920s

►Discrimination & violence in North results Discrimination & violence in North results in black movements for racial in black movements for racial independenceindependence

►Marcus Garvey (UNIA) attracts large Marcus Garvey (UNIA) attracts large followingfollowing Demands black pride & separatismDemands black pride & separatism

MAP 23.1 Black Population, 1920 Although the Great Migration had drawn hundreds of thousands of African Americans to the urban North, the Southern states of the former Confederacy still remained the center of the African American population in 1920.


The Pittsburgh Crawfords, one of the most popular and successful baseball teams in the Negro National League, organized in 1920. Excluded from major league baseball by a “whites only” policy, black ballplayers played to enthusiastic crowds of African Americans from the 1920s through the 1940s. The “Negro leagues” declined after major league baseball finally integrated in 1947.


Revived Ku Klux Klan (1915–1925)Revived Ku Klux Klan (1915–1925)

►Recruit 5 million men & women by 1923 Recruit 5 million men & women by 1923 ►Expand nationwide Expand nationwide

From rural South to new citiesFrom rural South to new cities►Stress “native, white, Protestant Stress “native, white, Protestant

supremacy”supremacy” Oppose other races & religions Oppose other races & religions

►Claim new immigrants “mongrelize” USAClaim new immigrants “mongrelize” USA Continue earlier terror tactics/mystical ritualsContinue earlier terror tactics/mystical rituals Decline after rape scandal (1925)Decline after rape scandal (1925) Reflect pervasive intolerance of 1920sReflect pervasive intolerance of 1920s

Women members of the Ku Klux Klan in New Castle, Indiana, August 1, 1923. The revived Klan was a powerful presence in scores of American communities during the early 1920s, especially among native-born white Protestants, who feared cultural and political change. In addition to preaching “100 percent Americanism,” local Klan chapters also served a social function for members and their families.


Immigration Quotas; Immigration Quotas; Sacco & Vanzetti CaseSacco & Vanzetti Case

►Nativists successful in reducing Nativists successful in reducing immigration, esp. new immigrantsimmigration, esp. new immigrants 1921, 1924, & 1927 Acts set up yearly quotas1921, 1924, & 1927 Acts set up yearly quotas Favor immigrants from north/west Europe Favor immigrants from north/west Europe

over south/east Europeover south/east Europe►1924 Act bans Asian immigrants1924 Act bans Asian immigrants

Immigration shifts to Western HemisphereImmigration shifts to Western Hemisphere►Trial/ execution of Italian anarchists Trial/ execution of Italian anarchists

reflects anti-immigrant bias & anti-reflects anti-immigrant bias & anti-radicalismradicalism

FIGURE 23.3 Immigration Trends to the United States by Continent/Region, 1880-1930.SOURCE: Adapted from Historical Statistics of the United States, Millennial Edition(NY: Cambridge University Press, 2006).


►Sources of Immigration, 1907 and 1927 Immigration peaked in 1907 and 1908, Sources of Immigration, 1907 and 1927 Immigration peaked in 1907 and 1908, when newcomers from southern and eastern Europe poured into the United States. when newcomers from southern and eastern Europe poured into the United States. After immigration restriction laws were passed in the 1920s, the greatest number of After immigration restriction laws were passed in the 1920s, the greatest number of immigrants came from the Western Hemisphere Canada and Mexico, which was immigrants came from the Western Hemisphere Canada and Mexico, which was exempted from the quotas, and the number coming from eastern and southern exempted from the quotas, and the number coming from eastern and southern Europe shrank.Europe shrank.

Sources of Immigration, 1907 and 1927Sources of Immigration, 1907 and 1927

►When Nicola Sacco and Bartolomeo Vanzetti were convicted of murder and When Nicola Sacco and Bartolomeo Vanzetti were convicted of murder and robbery in 1921, people who believed that the men’s anarchist political robbery in 1921, people who believed that the men’s anarchist political beliefs had caused the judge and jury to be overly biased tried to raise money beliefs had caused the judge and jury to be overly biased tried to raise money for court appeals. Contributors received buttons to wear in support of the two for court appeals. Contributors received buttons to wear in support of the two Italian immigrants. Efforts by sympathizers, both in the U.S. and abroad, Italian immigrants. Efforts by sympathizers, both in the U.S. and abroad, failed, however, and Sacco and Vanzetti were executed in August of 1927.failed, however, and Sacco and Vanzetti were executed in August of 1927.

Sacco and Vanzetti Fund ButtonSacco and Vanzetti Fund Button

© Bettmann/Corbis

Mexicans & Puerto RicansMexicans & Puerto Ricans

►Most Mexicans work as agrarian laborers Most Mexicans work as agrarian laborers in West, but many move to citiesin West, but many move to cities Mexican Revolution drives many north to Mexican Revolution drives many north to

escape violence and faltering economyescape violence and faltering economy►Puerto Ricans migrate to NYC, form Puerto Ricans migrate to NYC, form barriosbarrios Shift from sugar to coffee in PR caused Shift from sugar to coffee in PR caused

labor surpluslabor surplus►Both groups suffer poverty, Both groups suffer poverty,

discriminationdiscrimination

FIGURE 23.4 Mexican Immigration to the United States in the 1920s Many Mexican migrants avoided official border crossing stations so they would not have to pay visa fees. Thus, these official figures probably underestimated the true size of the decade’s Mexican migration. As the economy contracted with the onset of the Great Depression, immigration from Mexico dropped off sharply.


►Over half a million Mexicans immigrated to the United States during the Over half a million Mexicans immigrated to the United States during the 1920s. Many of them traveled in families and worked together in the fields 1920s. Many of them traveled in families and worked together in the fields and orchards of California and other western states. This family is shown and orchards of California and other western states. This family is shown pitting apricots in Los Angeles County in 1924.pitting apricots in Los Angeles County in 1924.

Mexican Immigration, 1924Mexican Immigration, 1924

Seaver Center for Western History Research, Natural History Museum of Los Angeles County

Mexican workers gathered outside a San Antonio labor bureau in 1924. These employment agencies contracted Mexicans to work for Texas farmers, railroads, and construction companies. Note the three Anglo men in front (wearing suits and ties), who probably owned and operated this agency. During the 1920s, San Antonio’s Mexican population doubled from roughly 40,000 to over 80,000, making it the second largest colonia in El Norte after Los Angeles.


Growth of SuburbsGrowth of Suburbs

►Prosperity & cars fuel suburban Prosperity & cars fuel suburban expansionexpansion Middle & upper classes flee urban Middle & upper classes flee urban

problemsproblems

►Resist annexation by citiesResist annexation by cities►Cities & suburbs = Cities & suburbs = centerscenters of of

consumer cultureconsumer culture

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Images of Femininity;Images of Femininity;Gay & Lesbian CultureGay & Lesbian Culture

►““Flappers” remake image of femininityFlappers” remake image of femininity Stress personal freedom & sexualityStress personal freedom & sexuality

►Few actually become flappersFew actually become flappers►Dress styles changeDress styles change

Some women assert independence/equalitySome women assert independence/equality►Gay/Lesbian culture more overt in some Gay/Lesbian culture more overt in some

cities (Greenwich Village, NYC); still cities (Greenwich Village, NYC); still discriminationdiscrimination New habits spark move to reassert New habits spark move to reassert

traditionstraditions

Fundamentalism & Fundamentalism & Scopes Monkey Trial (1925)Scopes Monkey Trial (1925)

►Evangelical Protestant denominations Evangelical Protestant denominations growgrow Advocate literal interpretation of BibleAdvocate literal interpretation of Bible Reject materialism, science, & “modernism”Reject materialism, science, & “modernism”

►Darrow v. Bryan debates ban on teaching Darrow v. Bryan debates ban on teaching evolution (TN) in “Scopes Monkey Trial”evolution (TN) in “Scopes Monkey Trial” Other states implement ban on evolutionOther states implement ban on evolution

►Pentecostal churches also expand in citiesPentecostal churches also expand in cities►KKK, nativism, & religion reflect attempts KKK, nativism, & religion reflect attempts

to sustain traditional values in new erato sustain traditional values in new era

Cultural CurrentsCultural Currents

►Writers/artists reject Writers/artists reject materialism/conformitymaterialism/conformity Hemingway, Faulkner, FitzgeraldHemingway, Faulkner, Fitzgerald

►Express disillusionment (e.g., with WWI)Express disillusionment (e.g., with WWI)

►African Americans celebrate black African Americans celebrate black cultureculture Explore identity in Harlem RenaissanceExplore identity in Harlem Renaissance With roots in black culture, jazz becomes With roots in black culture, jazz becomes

popularpopular►Give African American musicians, such as Give African American musicians, such as

Louie Armstrong a place in consumer cultureLouie Armstrong a place in consumer culture

p. 641

The Election of 1928 & The Election of 1928 & the End of the New Erathe End of the New Era

►Hoover campaigns on prosperity Hoover campaigns on prosperity ►Smith increases Democratic strength Smith increases Democratic strength

among urban ethnicsamong urban ethnics►Hoover (Republican) wins Hoover (Republican) wins

As president (1929–33), Hoover continues As president (1929–33), Hoover continues past efforts to promote business growthpast efforts to promote business growth

►Stock prices drop with panic selling (Oct. Stock prices drop with panic selling (Oct. 1929) 1929) Crash helps unleash devastating depressionCrash helps unleash devastating depression

MAP 23.2 The Election of 1928 Although Al Smith managed to carry the nation’s twelve largest cities, Herbert Hoover’s victory in 1928 was one of the largest popular and electoral landslides in the nation’s history.


Clifford K. Berryman’s 1928 political cartoon interpreted that year’s presidential contest along sectional lines. It depicted the two major presidential contenders as each setting off to campaign in the regions where their support was weakest. For Democrat Al Smith, that meant the West, and for Republican Herbert Hoover, the East.


Declining DemandDeclining Demand

►Several Several interrelatedinterrelated factors cause factors cause depressiondepression Sales in growth industries (autos, electric Sales in growth industries (autos, electric

appliances, housing) stagnate, late 1920sappliances, housing) stagnate, late 1920s►UnderconsumptionUnderconsumption

neither farmers nor workers earn enough to neither farmers nor workers earn enough to preserve demandpreserve demand

Widening income gap contributes to Widening income gap contributes to problemproblem

►Income of richest 1% skyrocket (up 75%)Income of richest 1% skyrocket (up 75%)►Only modest gains for middle/lower classesOnly modest gains for middle/lower classes

Corporate Debt & Corporate Debt & Stock Market SpeculationStock Market Speculation

►Businesses use large loans to pursue Businesses use large loans to pursue expansionexpansion When sales drop, defaults occurWhen sales drop, defaults occur

►Corporations, individuals, & banks Corporations, individuals, & banks engage in risky purchase of stocks “on engage in risky purchase of stocks “on margin”margin” When stock prices decline, many brokers, When stock prices decline, many brokers,

banks, investors, & businesses face ruinbanks, investors, & businesses face ruin►Growing US stock investments (late Growing US stock investments (late

1920s) hamper USA-European 1920s) hamper USA-European economic linkseconomic links

FIGURE 23.1 Stock Market Prices, 1921–32 Common stock prices rose steeply during the 1920s. Although only about 4 million Americans owned stocks during the period, “stock watching” became something of a national sport.


International Economy International Economy & Federal Policies & Federal Policies

► In WWI, US banks loaned billions to EuropeIn WWI, US banks loaned billions to Europe High tariffs (1920s) prevent Europeans from High tariffs (1920s) prevent Europeans from

selling in USA to pay back loansselling in USA to pay back loans Allies/ Germany depend on continued loansAllies/ Germany depend on continued loans Without new loans, defaults begin (late 1920s)Without new loans, defaults begin (late 1920s)

►Global trade/finance collapseGlobal trade/finance collapse US Gov’t did US Gov’t did notnot regulate wild stock market regulate wild stock market Prefered US Gov’t-business cooperationPrefered US Gov’t-business cooperation

Hard Times, 1929–1933Hard Times, 1929–1933

► GNP drops by 50%GNP drops by 50%► Corporate profits fall from $10 to $1 billionCorporate profits fall from $10 to $1 billion► 100,000 businesses close100,000 businesses close► By early 1933, 25% of workforce out of By early 1933, 25% of workforce out of

workwork Millions more work only part-timeMillions more work only part-time Industrial wages cut by ⅓Industrial wages cut by ⅓

► Millions suffer hunger, malnutrition, Millions suffer hunger, malnutrition, illness, inadequate heat, & poor housingillness, inadequate heat, & poor housing

Herbert C. HooverHerbert C. Hoover

3131stst US President US President

1929-19331929-1933

Hard Times, 1929–33 (cont.)Hard Times, 1929–33 (cont.)

► Homeless form “Hoovervilles”Homeless form “Hoovervilles”► Couples delay marriage & Couples delay marriage &

parenthoodparenthood► Farm crisis (1920s) deepens as farm Farm crisis (1920s) deepens as farm

prices continue to dropprices continue to drop Farmers suffer overproduction, low Farmers suffer overproduction, low

prices, drought, insects, prices, drought, insects, debt/foreclosuresdebt/foreclosures

Many leave land & migrate Many leave land & migrate

University of Washington Libraries, Seattle, Washington.Seattle Hooverville, 1931Seattle Hooverville, 1931

Hoover Park, Central Park, Hoover Park, Central Park, NYCNYC

Marginal WorkersMarginal Workers

► Blacks suffer more than whitesBlacks suffer more than whites By 1932, black unemployment = 50%By 1932, black unemployment = 50%

► Whites take jobs from blacks & HispanicsWhites take jobs from blacks & Hispanics USA deport 82,000 Hispanics (1929-35)USA deport 82,000 Hispanics (1929-35) Whites coerce almost ½ million more to leaveWhites coerce almost ½ million more to leave

► Women suffer low pay, segregation & Women suffer low pay, segregation & claims they take jobs from menclaims they take jobs from men Although most female workers single, Although most female workers single,

economic crisis force some married women to economic crisis force some married women to take jobstake jobs

““Okies” migrate west from the dustbowlOkies” migrate west from the dustbowl

Middle Class;Middle Class;Hoover’s Initial ResponseHoover’s Initial Response

► Suffer less than others, but still sufferSuffer less than others, but still suffer ““Make do” with lessMake do” with less

► AllAll Americans face uncertainty/fear Americans face uncertainty/fear for future for future

► Hoover initially resists US Gov’t Hoover initially resists US Gov’t activityactivity Prefers “associationalism”Prefers “associationalism” Call on charities to respond to crisis Call on charities to respond to crisis

(POUR)(POUR)►Crisis too large for charities to handleCrisis too large for charities to handle

Armour Foods Armour Foods Advertisement, Advertisement,

19321932►As the economic As the economic depression deepened, depression deepened, Americans had less Americans had less money to spend, even money to spend, even on necessities, and on necessities, and manufacturers of manufacturers of consumer goods consumer goods struggled to sell their struggled to sell their products and stay in products and stay in business. In this 1932 business. In this 1932 Ladies’ Home Journal Ladies’ Home Journal advertisement, Armour advertisement, Armour Foods tried to convince Foods tried to convince housewives who were housewives who were making do with less that making do with less that it was economical— it was economical— ”often as low as 10¢ a ”often as low as 10¢ a serving”—to purchase a serving”—to purchase a whole ham instead of whole ham instead of cheaper cuts of meat. cheaper cuts of meat.


Hoover’s Limited Solutions Hoover’s Limited Solutions

► Hoover rejects direct reliefHoover rejects direct relief aid to individuals will undermine characteraid to individuals will undermine character

► Slowly activates gov’t with few public works Slowly activates gov’t with few public works ► Raises tariffs with Hawley-Smoot Tariff Raises tariffs with Hawley-Smoot Tariff

(1930)(1930) Further weakens international tradeFurther weakens international trade

► RFC loans money to banks, railroads, RFC loans money to banks, railroads, insuranceinsurance

► Try direct assistance to private industryTry direct assistance to private industry► Lots of popular anger at HooverLots of popular anger at Hoover

Protest and Social Unrest Protest and Social Unrest ► Most Americans respond with Most Americans respond with

bewildermentbewilderment Scattered urban/rural protest emergeScattered urban/rural protest emerge

►Farmers’ Holiday Association call for strike Farmers’ Holiday Association call for strike by farmers to raise food pricesby farmers to raise food prices

►Some farmers block foreclosuresSome farmers block foreclosures

Communist Unemployment Councils Communist Unemployment Councils organize jobless to protest; some organize jobless to protest; some protests turn violentprotests turn violent

Racial violence also increase (e.g. KKK)Racial violence also increase (e.g. KKK)

►In the summer of 1932, unemployed veterans of the First World War In the summer of 1932, unemployed veterans of the First World War gathered in Washington, D.C., to demand payment of their soldiers’ gathered in Washington, D.C., to demand payment of their soldiers’ bonuses. After Congress rejected the appeal of the “Bonus Army,” some bonuses. After Congress rejected the appeal of the “Bonus Army,” some refused to leave and President Hoover sent U.S. Army troops to force refused to leave and President Hoover sent U.S. Army troops to force them out. Here, police battle Bonus Marchers in July 1932. them out. Here, police battle Bonus Marchers in July 1932. National Archives

"Bonus Army" March, 1932"Bonus Army" March, 1932

Presidential Election, 1932 Presidential Election, 1932

Documents

Week 8 Chapter 24 The New Era, 1920-1929 Chapter 25 The Great Depression (Hoover) Week 8 Chapter 24 The New Era, 1920-1929 Chapter 25 The Great Depression