War and ProsperityWar and Prosperity

Chapter 12Chapter 12Section 1Section 1

From 1900 to 1917, political life in the From 1900 to 1917, political life in the United States had moved under the United States had moved under the banner of progressive reform.banner of progressive reform.

After World War I, however, most After World War I, however, most Americans ceased to care about Americans ceased to care about promoting reform.promoting reform.

They wanted to forget the war and enjoy They wanted to forget the war and enjoy the new prosperity.the new prosperity.

The U.S. government returned to the 19The U.S. government returned to the 19thth century policy of laissez-faire.century policy of laissez-faire.

For most of the 1920s, the United States For most of the 1920s, the United States enjoyed a period of prosperity.enjoyed a period of prosperity.

Impact of WarImpact of War

World War I ended in 1918.World War I ended in 1918. In the election of 1920, the In the election of 1920, the

Republican candidate Warren G. Republican candidate Warren G. Harding, defeated his Democratic Harding, defeated his Democratic opponent by a huge majority. opponent by a huge majority.

Two groups that entered the Two groups that entered the workforce to replace men who went workforce to replace men who went off to war were both white and off to war were both white and African American women.African American women.

Women, African Americans, and Women, African Americans, and Other MinoritiesOther Minorities

Some 300,000 African American men joined Some 300,000 African American men joined the military during WWI.the military during WWI.

When peace came, both women and African When peace came, both women and African Americans were reluctant to accept their pre-Americans were reluctant to accept their pre-World War I status.World War I status.

Women’s rights advocates increased their Women’s rights advocates increased their protests to gain the right to vote.protests to gain the right to vote.

When African Americans soldiers returned When African Americans soldiers returned home from the war; they had difficulty going home from the war; they had difficulty going back to being treated as second-class citizens.back to being treated as second-class citizens.

Many of the confrontations between Many of the confrontations between blacks and whites occurred in southern blacks and whites occurred in southern cities.cities.

One of the most serious took place in One of the most serious took place in Tulsa, Oklahoma, in 1921.Tulsa, Oklahoma, in 1921.

As was true in other parts of the South, As was true in other parts of the South, blacks in Tulsa were not allowed to live or blacks in Tulsa were not allowed to live or own businesses in the white part of the own businesses in the white part of the city.city.

As a result, African Americans lived and As a result, African Americans lived and worked in their own segregated worked in their own segregated community.community.

Tulsa RiotsTulsa Riots

The cause of the Tulsa riot was similar to the The cause of the Tulsa riot was similar to the cause of racial strife in other cities.cause of racial strife in other cities.

Rumors spread about a black male attacking a Rumors spread about a black male attacking a white woman.white woman.

An army of whites forced their way into the An army of whites forced their way into the black section of the city where deadly combat black section of the city where deadly combat took place.took place.

When the rioting was over, many black-owned When the rioting was over, many black-owned homes and businesses had been burned to the homes and businesses had been burned to the ground, and many people, mostly black, had ground, and many people, mostly black, had been killed. been killed.

People from Asia faced discrimination People from Asia faced discrimination that lived on the West Coast.that lived on the West Coast.

Movement of African Americans Movement of African Americans to the Northto the North

Two main reasons for the migration to Two main reasons for the migration to the North.the North.

1.1. First, they wanted to escape the First, they wanted to escape the segregation, or Jim Crow, laws of the segregation, or Jim Crow, laws of the South. Their resentment of these laws South. Their resentment of these laws increased after World War One. If they increased after World War One. If they boldly defied whites’ prejudice against boldly defied whites’ prejudice against them, they risked being jailed or even them, they risked being jailed or even lynched. lynched.

2.2. A second reason for moving to the North A second reason for moving to the North was the hope of finding a steady job for was the hope of finding a steady job for good pay.good pay.

White people in the North felt White people in the North felt threatened by the arrival of blacks threatened by the arrival of blacks in large numbers. in large numbers.

Riots would break out and blacks Riots would break out and blacks found segregated beaches, found segregated beaches, housing, schools, and clubs. housing, schools, and clubs.

Return to “Normalcy”Return to “Normalcy”

In his presidential campaign, In his presidential campaign, Harding promised that he would Harding promised that he would lead the American nation back to lead the American nation back to “normalcy.”“normalcy.”

In other words he suggested a In other words he suggested a return to the quieter time before return to the quieter time before the war and before the progressive the war and before the progressive politics of Woodrow Wilson and politics of Woodrow Wilson and follow a laissez faire policy.follow a laissez faire policy.

Postwar RecessionPostwar Recession

During World War I, prices of many American-During World War I, prices of many American-made goods increased because most were made goods increased because most were exported or used by the military.exported or used by the military.

Fewer goods were available in the home Fewer goods were available in the home market.market.

During this period, wages did not keep pace During this period, wages did not keep pace with rising prices.with rising prices.

By 1920, unemployment had increased from 2 By 1920, unemployment had increased from 2 percent during the war to more than 12 percent during the war to more than 12 percent, as exports and the production of percent, as exports and the production of armaments declined.armaments declined.

As the demand for good decreased, As the demand for good decreased, businesses went bankrupt.businesses went bankrupt.

Both the unemployed and those whose Both the unemployed and those whose wages did not keep pace with prices wages did not keep pace with prices could no longer afford to purchase goods could no longer afford to purchase goods and services.and services.

Added to this was a decline in farm Added to this was a decline in farm income, as Europeans farmers once again income, as Europeans farmers once again began to grow products that had been began to grow products that had been imported from the United States during imported from the United States during the war. the war.

These conditions caused the United These conditions caused the United States to fall into a recession, which last States to fall into a recession, which last from 1920 to 1922. from 1920 to 1922.

Teapot Dome Scandal Teapot Dome Scandal

Teapot Dome was the name of Teapot Dome was the name of federally owned lands in Wyoming federally owned lands in Wyoming that contained huge reserves of oil.that contained huge reserves of oil.

Secretary of the Interior Albert Fall Secretary of the Interior Albert Fall secretly leased oil-rich public lands secretly leased oil-rich public lands to several oil companies. to several oil companies.

In return for his cooperation, Fall In return for his cooperation, Fall received from the companies secret received from the companies secret and illegal payments (bribes) and illegal payments (bribes) totaling about $325,000.totaling about $325,000.

Harding knew nothing about the Harding knew nothing about the corrupt dealings of Fall and other corrupt dealings of Fall and other high ranking officials, but he bore the high ranking officials, but he bore the responsibility for having appointed responsibility for having appointed untrustworthy politicians to office.untrustworthy politicians to office.

Vice President Calvin Coolidge became Vice President Calvin Coolidge became president when Harding died.president when Harding died.

Coolidge was a man of few words.Coolidge was a man of few words. Reporters referred to him as “Silent Reporters referred to him as “Silent

Cal.”Cal.” Coolidge did say something memorable: Coolidge did say something memorable:

“The business of America is business.”“The business of America is business.” Coolidge and the Republican Party were Coolidge and the Republican Party were

viewed as supporters of big business.viewed as supporters of big business. In the 1920’s, the depressed situation of In the 1920’s, the depressed situation of

United States agriculture was chiefly United States agriculture was chiefly caused by mechanization and caused by mechanization and overproductionoverproduction..

During most of the 1920s, owners During most of the 1920s, owners of small family farmsof small family farms experienced experienced the most severe economic the most severe economic problems.problems.

The economic boom and the The economic boom and the financial speculation of the 1920’s financial speculation of the 1920’s were caused in part by installment were caused in part by installment buying and an unregulated stock buying and an unregulated stock market.market.

During the 1920s, there was no more During the 1920s, there was no more trust busting by the government. (laissez trust busting by the government. (laissez faire)faire)

When workers spend less time When workers spend less time accomplishing the same amount of work, accomplishing the same amount of work, their productivity rises.their productivity rises.

New machinery and the use of assembly New machinery and the use of assembly line methods resulted in impressive line methods resulted in impressive gains in productivity during the 1920s, gains in productivity during the 1920s, thus making it cheaper to manufacture thus making it cheaper to manufacture goods.goods.

Laissez FaireLaissez Faire

Although workers wages also increased, Although workers wages also increased, they were far below the increases in they were far below the increases in productivity. productivity.

An average factory worker earned $1,350 An average factory worker earned $1,350 a year in 1929, compared to $1,100 a year a year in 1929, compared to $1,100 a year in 1919.in 1919.

Business was so good that average Business was so good that average Americans with average incomes began Americans with average incomes began buying the stocks of major corporations. buying the stocks of major corporations.