Isolationism

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Republicans want to become isolationists. Democrats want to join League of Nations to preserve global peace. Wilson suffers stroke, Republicans win election so USA becomes politically isolated. Want a return to normalcy rather than involvement in Europe s affairs Tariffs are imposed which hurts free trade meaning less likely to occur. USA has enough raw materials that they don t need to import. Other countries raise tariffs so exports decrease. USA becomes economically isolated Theories of evolution are banned from being taught (Monkey Trials- John Scopes persecuted for violating law and teaching evolution) meaning they became intellectually isolated Harsh literacy tests were imposed to reduce the number of immigrants from Eastern Europe so USA became racially isolated. Less land available, less workers needed due to mechanisation of industry, cheap labour meant more competition for work, quality of immigrants education declining and ghettos with drunk, violent foreigners turned Americans against immigration Social isolation occurred as banned Asians from migrating

Economic Strength
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Came out of WWI prosperous in terms of agriculture and industry as they had exported huge amounts of food, raw materials and ammunition to Europe, hence making a lot of money USA s industrial market became stronger than other countries, for example, they overtook Germany as the world s leading producer of chemicals, dyes and fertilisers Their technology had advanced, becoming more mechanised and new material such as s plastic were created

Problems
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Four million soldiers lost their jobs High levels of production during war dropped, so workers were laid off Prices had doubled, but wages hadn t changed. Workers wanted more but due to increased unemployment, the bosses had the upper hand and were unwilling to compromise. Strikes occurred. Fear of Communism spreading Race riots happened as blacks were angry with the mistreatment they suffered

New Industries
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More consumer goods produced ; sales of vacuum cleaners and washing machines increased Cars were mass produced so were cheap and readily available for all Industries for rubber, glass, steel and chemicals boomed Electricity became widely available meaning a whole range of new goods could be developed Factories were more efficient on electricity Assembly lines were set up by Henry Ford. This would move meaning that the car could be produced ten times quicker than previously, car prices decreased and wages for production line workers increased

Transport
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Cars became widely used. Number of roads doubled Number of trucks tripled and number of buses increased Aircrafts for civil flights were first used, 162 000 flights by 1929

Construction
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Industrial growth created demand for new factories More offices, banks, insurance and advertising companies, showrooms for cars and electrical products More roads, schools and hospitals were built Big companies tried to demonstrate power and prestige by being very tall. Skyscrapers such as the Empire State Building were built

Advertising and Shopping

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Mail order catalogues were created as with trucks and roads it was easier to deliver goods to people living in countryside Billboards, newspapers and radio were used to advertise Easier to spend (hire purchase) and wages had increased Chain stores now opened Dresses were mass produced at the typical female size

Entertainment
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Films became a national obsession. 40 million tickets sold per week to the cinema Film making became a mass production industry, with 3 new films being made every week in Hollywood Comedies were most popular. Stars became social leaders Early films were silent but became talkies at end of 1920s Jazz became a popular form of music and radio and gramophone helped it spread Radio helped increase popularity of sport. Increased affluence led to more spectators watching football, baseball (Babe Ruth the celebrated star) and boxing. Became profitable business Dances such as the Charleston, the tango and the black bottom became famous as conflicting against traditional dances

Finance
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Hire purchase helped sales because people could pay a deposit and pay off the rest in instalments. Low interest rates from banks helped this. The explosion in consumer demand meant factories expanded and more jobs were available People bought shares in companies as investments. With increasing demand, share prices increased. Confidence that values would rise meant they were willing to borrow money from banks to buy shares, sometimes using their house as a guarantee. Buying on the margin

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Banks were also confident that share values would rise sufficiently before investors withdrew their savings, so they would make profits Republican government believed in laissez faire (not interfering with business) and rugged individualism (that people should prosper through their own hard work) Taxes were lowered on profits so more money went to the person to invest and spend on American goods. Tariffs such as the Fordney McCumber in 1922 meant that foreign goods couldn t compete with US goods, as they became more expensive than the same American product. This was intended to protect American industry and helped boom conditions in the 1920s but in the long term, it encouraged other countries to retaliate, making it harder to export.

Economic Boom
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Resources Impact of WWI Technological Development Mass Production Advertisement Credit Confidence Republican Policies

Farmers
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More food produced than necessary so prices fell Reduced incomes meant farmers couldn t keep up mortgage payments Many were evicted and some were forced to sell land During war surplus was sold to Europe and combine harvesters had made it easier to produce more Competition from Canada concerning grain led to its price collapse

African Americans
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Most were labourers or sharecroppers (paid a share of their crops to the landowner) Nearly 1 million lost their jobs and were forced North to find low-paid jobs, where they were still discriminated against 60% black women in Milwaukee worked as low paid domestic servants for white families Most factories operated on an all white policy

Old Industries
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Cotton, coal, tin and copper were being overproduced and not enough was wanted, so its price fell and wage cuts and jobs losses occurred in these industries Coal mines; wages reduced, safety standards dropped, hours grew longer. This led to a four month strike for better conditions but to no avail

Children
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Low wages in agriculture Long hours in textiles

Immigration
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After the widespread fear of immigration hurting USA, Congress passed various laws to limit the access of immigrants 1917 Immigration Law : Literacy test required to prove they could read English meaning people from poor countries with no education couldn t enter 1921 Quota Act limited the number of immigrants to 357 000 a year and the number from one particular ethnic group to 3% of its size in USA in 1910, a law which favoured Northern and Western Europeans 1924 National Origins Act reduced it to 2% of 1890 1929 Immigration Act reduced it to 150 000 a year

Ku Klux Klan
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Although slavery was abolished, segregation was still legal in the Southern States. Black people did not have equal right. This Klan started in the southern states with the principle aim to terrorise black people who had just gained freedom. The Jim Crow Laws legalised African Americans to be treated as inferior and exploited In 1920s it was hugely popular with 5 million members, also attacking Catholics and Jews Attracted fanatics who believed in native, white, Protestant supremacy and feared interference from other races Society to keep blacks where they belong, low position through terror tactics Klans were well organised with Imperial Wizards and Grand Dragons to co-ordinate its meetings. Secrecy is stressed as it uses its own language for clonversations. Operate by night and have sinister white hooded uniform to protect identity Tarring and feathering occurred whereby blacks were attacked to intimidate them Lynch mobs took justice into own hands killing at will Torture, castration, burning of homes of blacks were frequently happening Poor whites in Deep South who were proud of skin, farmers, police and officials supported the Klans Government turn a blind eye National Association for the Advancement of Coloured People was set up to try and get civil rights Klan declines in late 1920s after the Stephenson Scandal in which a Grand Dragon (of Indiana) raped, mutilated and killed a white girl. High publicity case meant everyone knew about it and led to lack of support

Prohibition

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Temperance groups were against drinking alcohol because of all the bad effects it had on society These movements were supported by major religious groups such as Women s Christian Temperance Union and the Anti Saloon League By 1917, the League had made prohibition a key issue and politicians who were Wet would lose many votes Drinking alcohol was associated with abseentism from work In a generation of the car, roads would be more dangerous with alcohol Food shortage meant it was a bad idea to waste barley and grain on making alcohol Germany was used as a scapegoat, claiming their incessant alcohol addiction had left them violent and it was a patriotic duty to avoid it 16 January 1920 Prohibition starts Alcohol sale was driven underground Speakesies were opened in large cities, secret basement bars which sold beer. 32000 in NY Bootleggers supplied illegal liquor ; rum from West Indies and whisky from Canada. Businessmen got involved and made fortunes. They organised gangs to transport goods and became rich and powerful Made in the home. Moonshine was when people brewed gin illegally at home and stored it in their bathtubs. 280 000 illict stills were discovered by the government. Dangerous as could cause blindness or poison people Alcohol used for industrial purposes was stolen and poisoning deaths increased as the Gov purposefully added poison to prevent people stealing it. Agents were hired to stem the flow of smuggling but were bribed by gangsters Activity of criminal gangs increased and power was high. Made huge profits fighting to supply speakeasies, stealing booze from each other and murdering Level of corruption on society was appalling; worst legacy. Police, judges and other officials were bribed to turn a blind eye. This meant organised crime bought its way into the Gov, businesses and trade unions and meant other rackets like protection and prostitution could occur without justice interfering 14 year later, 1933 Roosevelt lifts law. Terrible affect on USA

Organised Crime Al Capone controlled most of Chicago having bribed the mayor and other politicians. Employed 1000 men with guns, and violence was used when considered necessary. 200 murders were linked to his gang and the most famous massacre was in 1929, when 6 members of the rival gang Bugs Moran was killed on St Valentine s Day Private armies developed in big cities especially when prohibition occurs as it provides huge profites. Control over alcohol, bank raids, protection money from shops (threaten shopowners if money isn t given to them), prostitution and drugs Targets youth : Different ethnic groups trying to protect themselves from others Makes 60 million dollars a year. Brings Hollywood sense of glamour to Chicago. Used money to set up soup kitchens for poor.

Young People
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More freedom Fashion influenced by Hollywood More money to spend and transport available Change in attitude in this generation. Wanted to go against parent s will. Sense of rebellion. Contraceptives meant sex before marriage became more common Flappers were young ladies with short hair, short skirts, make up and did outrageous things such as smoking in public and certain dances. Older, rural generations were appalled

Causes of Wall Street Crash

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Over production in agriculture drove prices down Over production in consumer goods did the same as families only bought goods once (such as fridge) and didn t need another Lack of credit control meant investors speculated on share prices rising Lack of regulation to control business activities Tariff policies made it difficult to export surplus goods Unequal distribution of wealth with half population being very poor, reduced size of market People bought and sold shares quickly Companies were forced to pay out profits to shareholders rather than the profits being reinvested Money borrowed on credit too much As soon as confidence was lost and people worried about share prices, they began to be sold and share prices started to edge down. People realised and suddenly rushed to sell as their shares were worth less than the loans they had used to buy them. They became cheaper and cheaper, eventually worthless. 16 million shares were sold on Black Tuesday

Immediate Consequences
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Many individuals were bankrupt Some homeowners lost their homes as they had used it to get loans/couldn t pay off mortgages Savings were lost as banks collapsed Farmers were evicted Production fell, wages fell, demand for good fell, unemployment increased