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The New Economy
Technology and Economic Growth After 1921-1922 recession, there was tremendous
economic growth in output and income Growth result of collapse of European industry
after war
The New Economy
An era of important technological advances: Rise of auto manufacturing (and in turn gas
production, road construction, assembly line) Rise of radio and commercial broadcasting Advances in air travel Development of electronics and synthetic materials
The New Economy
Maturation of electricity and telecommunications fields
Work during 1920s and 1930s on primitive computer technologies
The New Economy
Economic Organization Certain industries (e.g. steel) continued toward
national organization and consolidation These companies adopted new modern
administrative systems, with efficient division structures to allow subsidiary control and easier expansion
The New Economy
In industries with more competition, stabilization reached thru cooperation
Rise of trade association to coordinate production and marketing
The New Economy
Industrialists feared overproduction and recession Efforts to curb competition thru either
consolidation or cooperation reflected this
The New Economy
Labor in the New Era Some employers 1920s used “welfare capitalism” Gave workers more rights, improved safety Raised wages in order to avoid labor unrest and
independent union growth System survived only if industry prospered Economy collapsed in 1929
The New Economy
Welfare capitalism helped only a few workers Employers wage increases disproportional to their
increase in profits Ultimately workers still mainly impoverished and
powerless Families relied on multiple wage earners
The New Economy
Organized labor and independent unions often failed to adapt to changing nature of modern economy
American Federation of Labor still used craft union system based on skills
Did not allow membership to growing pool of unskilled industrial workers
The New Economy
Women and Minorities in the Work ForceNumber of women in workforce increased,
especially in “pink-collar” jobsLow-paying service jobsMost unions refused to organize them
The New Economy
African-Americans in cities after 1914 “Great Migration” were largely excluded from unions
A. Philip Randolph’s Brotherhood of Sleeping Car Porters was a notable exception
The New Economy
In West and Southwest unskilled and unorganized workers were mainly Hispanics and Mexican immigrants
Also Asians (mainly Japanese who replaced Chinese after Exclusion Acts in menial jobs)
The New Economy
The “American” PlanAfter 1919, economic uneasiness
corporations rallied strongly against “subversive” unionism and wanted to protect idea of “Open Shop” (in which workers not forced to join union)
This was known as the “American Plan”
The New Economy
Government intervened on behalf of management
Courts often ruled against striking workersBetween this and corporate efforts union
membership saw large decline
The New Economy
Agricultural Technology and the Plight of the Farmer
American agriculture adopted new technologies (e.g. tractor, combine)
Allowed more crops with fewer workers Hybrid corn and fertilizers also increased
productivity
The New Economy
But improved technology also led to overproduction and collapse in food prices
Farmers called on government price support Idea of “parity” (government set price, farmers
reimbursed if good sold for less in fluctuating market)
High foreign crop tariffs introduced in Congress (McNary-Haugen Bill, vetoed by Coolidge)
The New Culture
Consumerism Industrial growth led to rise of consumer culture in
which people had discretionary funds to buy items for pleasure (appliances, fashion)
Most revolutionary product was automobile Allowed rural people to escape isolation, city
people to escape crowded urban life; rise of vacation traveling
The New Culture
Advertising Techniques first used in wartime propaganda came of
age in new age of advertising and work of publicists Famous book of time The Man Nobody Knows by
Bruce Burton about Jesus as “salesman” Ads possible because of mass audience in national
chains of newspapers, mass-circulation magazine growth
The New Culture
The Movies and Broadcasting 1920s saw rise of Hollywood Creation of Motion Picture Association The Hays Code as industry self-ban on
objectionable material
The New Culture
Phenomenal rise of radio beginning with first commercial station broadcasting in 1920
By 1929, 12 million families owned radio sets
The New Culture
Modernist Religion Growing consumer culture with emphasis on
immediate self-fulfillment had influence on religion Some abandoned “traditional” and literal Harry Emerson Fosdick spokesman for new liberal
Protestantism of 1920s
The New Culture
Professional Women Most employed women were working class
because of professional struggle between career and family.
Few professional women limited to mainly “feminine” fields of fashion, education, social work, nursing
The New Culture
Changing Ideas of MotherhoodBelief grew that maternal affection was not
adequate preparation for child rearingAdvice and help of professionals needed
instead
The New Culture
Motherhood increasingly relied on institutions out of home
Allowing time to devote to “companionate marriage”
More involved more as wives, in social life Growth of birth control related to sense of sex as
“recreation” vs. only procreation
The New Culture
The “Flapper”: Image and Reality Some women came to believe rigid and Victorian
“feminism” unnecessary “Flapper” women expressed themselves freely thru
dress, speech, behavior
The New Culture
Pressing for Women’s RightsWomen formed League of Women Voters,
many women helped growing consumer groups
The New Culture
Sheppard-Towner Act (1921) gave federal funds to states for prenatal and child healthcare
Opposed by the American Medical Association, and others
Repealed in 1929 Showed that women didn’t vote as single block,
even on “female” issues
The New Culture
Education and Youth Growing secularism Emphasis on training and expertise manifested
itself in growing upper education attendance rates, teaching of technical skills
The New Culture
Emergence of distinct youth culture with growing idea of adolescence
Belief this was time for child to develop institutions with peers separate from family
The New Culture
The Decline of the “Self-Made Man” Myth of “self-made man” who could gain wealth
and fame thru hard work and natural talent gave way to belief that nothing was possible without education and training
The New Culture
Men felt losing independence, control, “masculinity”
Idolized self-made men such as Thomas Edison, Henry Ford, Charles Lindbergh
The New Culture
The Disenchanted The “Lost Generation” New generation of artists and intellectuals Viewed society with contempt Instead of playing a “reform” role, they isolated
themselves
The New Culture
Lost Generation critical of the American system The individual had no means of personal fulfillment This rose out of the experience of “The World War,”
and the sense that many had died in vain Also the end of Wilsonian idealism, growing
business and consumerism
The New Culture
Ernest Hemingway’s A Farewell to Arms (1929) expressed contempt of war
Other “debunkers” critical of society included H.L. Mencken, Sinclair Lewis
Many of these critics who rejected the “success ethics” of America became expatriates living abroad
Paris was center of American artistic life
The New Culture
The Harlem RenaissanceOther intellectuals saw solution to problems
in exploration of own culture and its originsA great example was Harlem during “Harlem
Renaissance”
The New Culture
Harlem (in New York City) was a center of black artists and intellectuals
Literature, poetry , and art drew on African roots
Most famously, Alan Locke, Langston Hughes
The New Culture
The Southern Agrarians Group of Southern intellectuals and poets known as
the Fugitives Rebelled against depersonalization and materialism
due to industrialization by recalling the Southern nonindustrial, agrarian way of life
Wrote reactionary ideas in their 1930 agrarian manifesto I’ll Take My Stand
A Conflict of Cultures
Prohibition Volstead Act (18th Amendment) ratified in 1918 Prohibition took effect in 1920 Within a year, the “noble experiment” was failing Even though some drinking rates fell, alcohol was
still widely available
A Conflict of Cultures
Legitimate businesses were being replaced by organized crime (famous gangster Al Capone)
Prohibition was supported by women, and by rural Protestants
They associated drinking with Catholic immigrants and the new valueless culture
A Conflict of Cultures
A Conflict of Cultures Nativism and the Klan After the Great War, many Americans associated
immigration with radicalism Efforts to restrict influx grew In 1921, Congress passed emergency immigration
law with a quota system
A Conflict of Cultures
The Nativists wanted harsher law National Origins Act of 1924 banned all east Asian
immigration Also reduced especially eastern European quotas
A Conflict of Cultures
Ku Klux Klan re-emerged as force because of fear by some older Americans of disruption of culture by new peoples
“New Klan” emerged in 1915 after meeting in Stone Mountain, GA
A Conflict of Cultures
At first targeted blacks After the war, targeted Catholics, Jews, and
foreigners Sought to purge “alien” influences Membership grew in South, but also in Northern
industrial cities
A Conflict of Cultures
The “New Klan” wanted to threaten anyone who challenged “traditional values”
Targets were irreligion, drunkenness, etc. Defended racial homogeneity and the “traditional”
culture against modernity Provided disenfranchised with sense of community,
power
A Conflict of Cultures
Religious Fundamentalism Fight over role of religion in modern society Split in Protestantism Between urban, middle-class people who wanted
to adapt religion to modern science, and Secular society vs. traditional rural people who
wanted to retain religious import
A Conflict of Cultures
Evangelical movement wanting to spread doctrine (famous preacher Billy Sunday)
Teaching Darwinism outlawed in Tennessee Teacher John Scopes defied the law ACLU promised to defend him Scopes trial isolated Fundamentalists from
mainstream Protestants, ended their growing political activism
A Conflict of Cultures
The Democrat’s Ordeal Democrats split between urban and rural factions Party included prohibitionists, Klansmen,
fundamentalists But also Catholics, urban workers, immigrants
A Conflict of Cultures
1924 Democratic National Convention in NY Conflict between urban wing and West/South Urban wing wanted prohibition repealed Denounced the Klan Supported Alfred Smith (a Catholic) as nominee
A Conflict of Cultures
West and South supported William McAdoo After deadlock, both withdrew; John Davis chosen
as nominee In 1928 Al Smith won nomination But party still divided because of southern anti-
Catholicism Smith lost 1928 election to Herbert Hoover
Republican Government
Harding and Coolidge Pres Warren Harding elected 1920; appointed party
elite who had helped win him nomination to positions in administration, ultimately this corrupt “Ohio Gang” committed fraud and corruption in Teapot Dome oil reserve scandal
Harding died of a heart attack 1923, VP Calvin Coolidge ascended to presidency (known for crushing Boston Police riot)
Republican Government
Coolidge a passive president like Harding Believed government should not interfere in life of
nation Won re-election 1924 but did not seek office in
1928 “I do not choose to run again.” Nickname: “Silent Cal”
Republican Government
Government and Business Even though New Era presidents were mostly
passive, federal government as a whole worked to helped business and industry operate efficient and productively
Secretary of the Treasury Andrew Mellon reduced tax on corporate profits, personal incomes, inheritances, and cut federal budget
Republican Government
Secretary of Commerce Herbert Hoover favored voluntary cooperation of businesses in private sector for stability
Supported business “Associationalism” in which businessmen in an industry worked together to promote stability, efficient production, and marketing
Hoover won the Presidential election of 1928 But the nation entered Depression in 1929