Politics and Prosperity

AP Chapters 31-32

A Republican Decade

Election of 1920– Hardings’s campaign pledge appealed to

Americans– He called for – Americans were tired of European problems

and feared their spread to the USA– Harding was elected

Demobilization

Transition from wartime to peace time unemployment rose; women and blacks

fired, anti-immigrant sentiment wages fell prices remain inflated due to the war people continue to buy

Demobilization __________________; prices and

production fell

____________ caused by overproduction, credit, lack of conservation

situation in Russia worsens; fear of ___________ grips the nation

Types of Economic Systems Capitalism - Private ownership of property

- Profit motive Socialism - Collective ownership of

property - Peaceful means to achieve

objective - Motive is “to each as

needed” Communism- Collective ownership through

violence if necessary - Motive is “to each as

needed”

Russian Revolution

Russia’s revolution in March, 1917 began as an attempt to bring democracy to Russia

Czar Nicholas II was overthrow Instead, chaos erupted Alexander Kerensky led the country

until he was overthrown in November, 1917

Civil War broke out Lenin and his communist followers

led the Red Army The White Army battled for 2 1/2 yrs

but was defeated (1924) ______________ “majority”

took power

Russian Revolution

Communism Under Lenin

1. The government owned all land and property

2. A single political party controlled the government

3. The needs of the country always took priority over the rights of individuals

Lenin changed the name of the country from Russia to the _______________________________ (USSR)

The Soviet Union was the largest country in the world in terms of land

It was near the largest in terms of population

The USA refused to __________ the country

Russian Revolution

______________ took over the country when Lenin died

He consolidated his power by He brutally oppressed all opposition

Americans feared a communist takeover

Feared immigrants could be

Began a campaign to label and neutralize all

Russian Revolution

The Palmer Raids

1919 ______________ found in post office addressed to prominent Americans, including Oliver Wendal Holmes, John D. Rockefeller.

A Bomb was detonated at Mitchell Palmer’s house.

Bombs blamed on

The Palmer Raids• Attorney General A. Mitchell Palmer

• Nov, 1919 to May 1920

• Interrogated and arrested thousands of

• Deported over 500 without evidence.

• After months of raids, they netted 3 pistols• By summer 1920 hysteria died down and most Americans

failed to support the witch-hunts.

Italian immigrants arrested for murder/burglary of a shoe factory near Boston

Railroaded by Judge Thayer who allowed their trial to be about their political views and lack of service in WWI

Convicted not from evidence but for political views, in clear violation of the Constitution

Executed August 23, 1927 in spite of protests in many major cities here and abroad

Labor Strikes

______________________ (1919)

called by shipyard workers for increased salary and shorter hours

joined by 110 local unions representing 60,000 workers

industrialists use propaganda and scare tactics – communist threat – to weaken support for the unions

strike ends after only 5 days with

Labor Strikes

The _______________________ (1919)

police commissioner fired 19 officers for

_____of the police force walked out in protest _____________ was called in by Governor

Coolidge after 2 nights of violence police force was replaced by

Labor StrikesThe _______________ (1919)

___________ steel workers in western PA & Midwest walked out

lasted from Sept. 1919 to Jan. 1920 owners hired private police – governor

supported owners 18 strikers recruited African Americans & immigrants

for replacement workers returned to work with

Labor StrikesThe _______________________ (1919)

Wages set by government in 1917; could not strike during war

________________ newly elected, called for strike

President Wilson demanded they return to work; officially ended the strike but unofficially encouraged workers not to return to work

After about a month, Wilson compromised

*After 1920 labor strikes sharply declined

* Unions did not have the support of the public

*Higher wages after the recession led to less desire for strikes

Republican Leadership

All 3 branches were considered _________________, meaning that they denounced ____________ changes.– Little or no government interference for

social ills (poverty, epidemics, etc.)– Promotion of business interests– Smallest government in terms of people,

finances, and scopes of interests possible

Republican Leadership

The Harding Presidency

Appointments varied from friends and family to prominent business leaders to some people that were inexperienced, incompetent, or dishonest

Foreign policy was centered on

Domestic policy centered on social stability, which included a

_________________ overshadowed his legacy

Foreign Policy

Isolationism - no involvement in European, Asian, or African conflicts

_______________ - 1921– USA, Great Britain, France, and Japan agree to

destroy some of their navy force and limit the amounts and types of new ships

_________________ - 1922– High duties on many products to discourage imports

_____________- 1924– Restructured Germany’s reparation payments and

gave them loans

Domestic Policy

“Less government in business and more business in government.”

Appointed businessmen to cabinet posts and encouraged pro-business policies

Domestic Policy

Immigration Policy– 1921 – Quota system established.

• ___________of population in USA in _________ would be admitted from each country.

– 1924 - National Origins Act• Quotas adjusted to________ of _____________• does not apply to Asians - they are still subject to

the ________________________• does not apply to ____________ - they are

encouraged to work on southwestern farms

Teapot Dome Scandal As investigations of various members of the Harding

Administration begins, the president dies naturally on Aug. 2, 1923

The scandals that erupt after his death taint his time in office, although he was not directly involved

Secretary of the Interior illegally granted drilling rights to private industries in Elk Hills, CA and Teapot Dome, WY. He then accepted $300,000 in kickbacks

Director of Veterans Bureau – Charles Forbes pocketed millions

Attorney General Harry Daugherty was convicted of accepting bribes

Coolidge Presidency VP Coolidge became president when Pres. Harding died.

He was elected in 1924. “The chief business of the American people is business.” Coolidge is known more for what he did not do than for

what he did

Laissez-Faire economics

Coolidge Presidency

Foreign Policy

–Kellogg - Briand Treaty (1927)

–15 countries agreed not to declare war on each other

Election of 1928

Coolidge declined to run Republican candidate, Herbert Hoover,

won over the Democrat, Alfred Smith Campaign revolved around religion and

prohibition– Smith is Catholic, anti-prohibition– Hoover is Protestant, pro-prohibition

A Business Boom

Recession from early part of the decade gradually declines

Industry successfully changed to a consumer economy

People bought consumer goods, creating demand

Factories fulfilled that demand by hiring employees

Manufacturers introduced installment plans to consumers to keep demand high

People were naïve about the so-called prosperity

A Business Boom

Electric Power– during 1920s General Electric supplied

many new household appliances– demand for electricity increased

dramatically Advertising

– new methods and mass media contributed to a huge impact by advertisements

Gross National Product rose

A Business Boom

Ford & The Automobile

Automobiles invented in 1880s Henry Ford used innovative techniques

to increase production and profit Between 1896-1908 Ford developed his

first original cars. He sold 30,000 Model T’s

In 1908 he built his 1st modern factory

Ford & The Automobile Principles of Mass Production

Ford & The Automobile Increased production leads to economies

of scale

Ford dropped prices on Model T to $390, making it affordable to

_________________________ - Ford owned glass companies, iron mines, steel mills and coal mines

Ford & The Automobile

Ford raised wages for his workers but strictly enforced his rules

Hired immigrants but insisted on their going to school to learn English and he had investigators inspect their homes

By 1936 he declined to 3rd place in the auto industry partly due to resistance to change

Industrial Growth

Automobile related industries led the boom

Other industries, like movie theaters, oil refineries, airplane manufacturers, grew by leaps and bounds

The top 200 American companies total worth grew from 43 billion to 81 billion (1919-1929)

Bypassed by the Boom

__________________________ did not fare as well in the job market

Farmers continued to struggle with

The Economy in the Late 1920s

The economy in the 1920s appeared to be in good shape on the surface

Underneath, there were warning signs of impending disaster

The stock market was taken as an indicator of the general economy

If stock prices went up, the whole economy must be alright

Stock value increased from $25 billion in 1927 to $87 billion in 1929

Average Americans invested in the stock market

Economy Appears Healthy

Stock prices are subject to supply and demand

The more people that invest in the market, the higher the demand, and consequently the price of stocks

Two ways to make money from the stock market -

Economy Appears Healthy Welfare capitalism

–

–organized labor membership declined in the 1920s

Economy Appears Healthy

Booming

Stock

Market

Labor Stability

ConsumerConfidence

Available

Credit

Economic Danger Signs

Economic Danger Signs

Economic Danger Signs Trouble for Farmers & Workers

– Many could not meet their mortgages, forcing 6000 rural banks to fail in the 1920s

– Congress passed relief bills in 1927 & 1928

– Many industry workers continued to work in dangerous jobs for small wages

– Textile workers in Tennessee -

Summary

Clear signals of trouble in the economy

Uneven wealth

Rising debt

Stock speculation

Over-production

Hardships of farmers

and workers

The End!