How and Why did the USA achieve prosperity in the 1920s?
Through industry, manufacturing,
finance and entertainment.
President Harding's tariff acts aided the
'boom' as the USA gained more money
from imports
American were forced to buy American Goods
Industry boomed, with new
mass-production techniques which
made products cheaper to make and
therefore cheaper to buy.
This along with hire purchase
meant that people could afford
new luxuries
ALL THESE FACTORS meant that people could spend money on commercial goods and entertainment which they previously
couldn't afford
Entertainment: cinema
and radio industry
boomed
More people could afford to
spend money on entertainment.
Other factors also meant that
people had more money to spend
Banks lent out more money, income tax and
interest rates were lowered. This mean that
more people could buy shares
How far was the USA a divided society
The USA in the 1920's was divided
racially ,financially and morally
The Jim Crow Laws segregated the
black population whilst The Quota
System and the National Origins Act
aimed to restrict immigration into the
USA
The Ku Klux Klan (KKK) was a
significant movement, which
demonstrated that people were
judged racially in the USA in the
1920s
This movement contributed to the USA's
racially divided society, but after 1925, the
KKK slowly lost support
In terms of finance ,Very few people benefited from
the boom and over 40% were in poverty
Only a few people were rich whilst many were poor.
There was a mixed opinion on
prohibition when it was
introduced, but it ultimately led to
more crime and more people
consuming alcohol
There was also a very mixed opinion on the
conduct of women in the 1920s. Some people
thought that the social liberation of women had
gone too far
THESE FACTORS ALL SHOW THE DIVISION OF THE USA IN THE 1920s. IT WAS A DIVIDED SOCIETY IN TERMS OF MORALLY, RACE and FINANCE
Prohibition was the banning of Alcohol
Alcohol was linked to madness, poverty and crime
It destroyed families
3000 infants were smothered to death by drunken parents
Big breweries were owned by Germans. People were seen to be traitors for drinking alcohol
Why did the US Stock Exchange collapse in 1929?
Government policies, financial division and
overproduction all contributed to the Wall
Street Crash
The USA's policy of economic
isolationism created a TRADE
BARRIER with Europe. This meant
that it was diffucult to sell US
products abroad
Wealth was unevenly distributed, meaning that the
working class has less money to spend on
commercial goods
These factors meant that there was a surplus of
goods, and overproduction in the USA. This led to
reduced production and therefore increased
unemployment. This also meant that people had less
money
On Thursday 24th October 1929 (24/10/1929) the
value of shares dropped dramatically. 13 million
shares were sold on this day because there was
little confidence in the economy
Leading figures tried to buy shares in order to restore condifence and
stop panic. This failed and panic selling led to debts and bankruptcy of
people all areas of society and over 5000 banks went bankrupt
Extra stuff
Tariffs
1922 Fordney McCumber Act
put high import tariffs on all
foreign made goods sold in the
USA
This was intended to protect American industries and
encourage Americans to buy home produced goods
This would also produce more jobs for American workers
This policy was later to backfire and damage exports as soon these foreign countries did the exact
same to America.
Advertising and Hire Purchase
Advertising encouraged people
to seek ‘The American Dream’,
with lots of consumer goods
making life easier for working
people
Goods could be bought by paying a small deposit
and then paying the rest instalments many people
could buy lots of expensive goods this way but
ended up owing huge amounts, which would cause
problems if they lost their jobs.
Mass Production
A new method of producing large
quantities of goods at cheaper
prices, using standardisation and a
moving assembly line.
A Model T Ford could
be produced every 93
minutes (instead of 14
hours)
Prices fell to make the
car affordable for
ordinary working
families so Ford sold
more Cars;
Wages for Ford workers rose
Other manufacturers copied
the mass production
methods, making consumer
goods affordable and created
more jobs in manufacturing
industries, e.g. telephones,
refrigerators, vacuum
cleaners, typewriters,
cookers.
Cars required little
materials, but granted
many benefits
Entertainment and Leisure
Jazz music gave
opportunities to
black musicians
Cinema - film stars
became role models
for young people
Radio Broadcast live
sport - baseball,
boxing, American
football
New dances and crazes
Flappers – Young women who
wore short skirts and shirts, cut
their hair, smoke, wore makeup
– behaviour shocked the older
generation
Skyscrapers
The construction industry boomed;
Skyscrapers were a symbol of the
optimism of the times; land was in short
supply in New York, so buildings went up
rather than out
Prohibition
Why so difficult?
People were not prepared to
stop drinking alcohol
BOOTLEGGERS could easily smuggle alcohol into the country
Gangsters like Al Capone paid Police officers and Judges
(CORRUPTION) to make sure they weren't arrested
There were hardly any prohibition agents to
enforce the law. There were more speakeasies
in Chicago than agents in the USA
SPEAKEASIES are illegal bars. People
made their own illegal alcohol called
MOONSHINE.
It was not illegal to drink alcohol, just to buy it.
Moonshine made some people blind, and was known to even kill people
Effects of Prohibition
Disguising bars as other shops
'Speak Easy' illegal
disguised bars
Special prohibition agents to enforce law
Corrupt police officers
and judges
'Bootleg alcohol'
illegal home
made alcohol
'Bootleggers'
people who sold
illegal alcohol
'Moonshine' illegal
alcohol that was sneaked
into speak easies
Increase in cost of
alcohol
Moonshine was bad quality
Encouraged Crime
How did Prohibition affect the USA in the 1920s
Show Consequences of Prohibition (6 developed points)
Bootleggers
Moonshine
Speakeasies
Corruption
Gangsters
Increase in crime
Use PEEL. REMEMBER TO LINK
Link every point with another i.e Increase
in crime can link to Gangsters, which can
then link to corruption
Revision TIPS
Make a bullet point list of: Five good things about living in
America in the 1920s. Five bad things about living in America in
the 1920s.
How the USA reacted to the end of the First World War.
How the policies of the American government encouraged isolation.
What were the Roaring Twenties?
Whether the Roaring Twenties is a good description of the USA in the 1920s.
How accurate the term the Roaring Twenties is as a description of American society in the 1920s?
How far US society changed in the 1920s.
How far the roles of women changed during the 1920s.