3. Crisis of Identity

• HARDING 1921-1923

  -        Focused almost all his attacks against Wilson rather than his opponent 

  -        Large popular vote

  -        Good cabinet

  -        Made efforts to make congress more involved

  -        Successful cuts in govt. spending

  -        Achieved little due to belief in ‘normalcy’
• COOLIDGE 1923-1929

  -        Believed in little govt. intervention

  -        Popular due to appearing calm and confident

  -        Low tax and minimum spending
• HOOVER 1929-1933

  -        ­Believed in little govt. intervention

  -        Firm believer in ‘rugged individualism’

  -        Policies for depression were too little too late

  -        Convinced the economy would right itself

  -        Tariffs and ‘banking holiday’
• ROOSEVELT 1933-1945

  -        Completely contrasted Hoover

  -        Believed in govt. aid

  -        Effective campaign

  -        Used the radio to effect

  -        Appeared upbeat about solving the depression

  No one knew what he stood for, Americans were just voting for change
• SOCIAL DIVISIONS:

  -        Surge of black migration North

  -        Native Americans marginalised

  -        Communist party supporting black rights
• WOMEN:

  -        War allowed 1 million women to assist filling male work positions

  -        19th amendment 1920: female vote 

  -        2 million more women employed in 1930 than 1920

  -        Men were still paid more
• PROHIBITION:

  -        Introduced to alcohol link to abusive behaviour

  -        Religious root of sin

  -        Failed due to being impossible to enforce

  -        Speakeasies sold alcohol illegally
• 1920s BOOM:

  -        Europe was still recovering from the war which increased efficiencies in US

  -        Business grew due to little govt. intervention

  -        Buy things on credit for the first time

  -        Car industry leading way for technological change

  -        Mellon Plan: reduced tax for business

  -       Fordney-McCumber Tariff: raised import duties on goods coming into US meaning domestic goods were the cheaper option
• -        Mellon Plan: reduced tax for business
• WALL STREET CRASH:

  Causes:

  -        Bull markets: large amounts of buying and selling

  -        Shares on the margin: people only paid for fraction of the share, borrowing largely from banks

  -        No govt. regulation: low interest rates and lots of borrowing

  -        Loss of confidence in the market
• Wall Street Crash Effects:

  -        Collapse of business

  -        Workers let off so less money invested

  -        Collapse of credit – fall in demand

  -        No confidence in the economy
• War Weariness

  •    US was more ambivalent towards entering WWI

  •    Populace was ready to return to how things used to before entering WWI

  •    Republican ticket campaigned on a promise of stability and comfort
• Roaring 20s

  •    US industry had been boosted by WWI

  •    Import tax duties

  •    Mass production of products 

  •   Henry Ford

  •    People could buy on credit 

  •   Massive consumer spending
• Tea Pot Dome Scandal: The Head of the Veterans’ Bureau, Charles R. Forbes stole $2 Million. Secretary of the Interior Albert B. Fall took kickbacks worth $400,000 in leasing public oil reserves to private development companies, and had accepted bribes in return for the permits. 
• Washington Naval Conference 1921-22:

  •    Held outside jurisdiction of LoN

  •    Four-power treaty resolved issues between Us, Britain and Japan

  •    Five-power treaty agreed on strict limits of battleship construction

  •    Nine-power treaty confirmed continuation of ‘open door’ policy with China (trade) 
• Emergency Quota Act 1921

  Restricted the number of immigrants admitted into the USA to 3% of the number of US residents from that same country as of the UC census 1910
• Johnson-Reed immigration Act 1924

  •    Made permanent the basic limitations into the US in the Emergency Quote Act; modified the Nation Origins Formula
• The Car Industry

  •    Very important role in the 1920s boom

  •    Leading the way in technological change

  •    Stimulating growth in other industries
• Fordney-McCumber Tariff: raised import duties on goods coming to the USA which meant domestic goods would be the cheaper option as import goods are more expensive, therefore increasing domestic profits
• Female Employment

  •    1930 compared to 1920 - 2 million more women employed (generally low skilled jobs)

  •    1/3 of university degrees were awarded to women in 1930 (4% uni professors were women)

  •    Men were still paid more, with no laws in place for equal pay
• Birth Control

  •    Margaret Sanger (pushed it out in society) - she was into eugenics

  •    Comstock Act 1873 made it difficult for information to be spread

  •    Eugenics supporters favoured contraceptions
• The Flapper

  •    Generally middle-upper class white women in the North

  •    Short skirts, bob hairstyles, smoking in public, dancing in public, make up, drove cars, wore swimming costumes

  •    Viewed as too extreme by many

   
• Why Was Prohibition Introduced?

  Advocated for years leading up to 1919 [18th Amendment 1919 - made alcohol illegal]

  •       Link between alcohol and abusive behaviour

  •       Industrialist argued drinking affected output at work

  •       Religious groups saw it as the root of sin

  •       Enhance traditions - make people hard working

  •       Many brewers were German (backlash WWI) - tipping point !!!
• Law passed but impossible to enforce
• During the 'Roaring 20s', people wanted to have a good time and had the money to do so
• Speakeasies were established to sell alcohol illegally
• Geographical difficulties in the USA with 18,700 miles of land made it impossible to prevent smuggling
• President Harding openly included alcohol in his parties at the White House
• Presence of bootleggers and illegal distilleries
• USA still able to produce its own supply of liquor and moonshine
• Chicago became the center of alcohol distribution due to its proximity to Canada and being at the center of networks, making it easy to ship
• •    21st Amendment 1933: Abolished prohibition [Roosevelt]
• 1.     Causes of the 1920s boom: lassies-faire govt., easy credit, exports increased, labour saving devices
• 1.     Underlying problems with the economy: people are going in debt with money they do not have
• The Hundred Days

  First hundred days of Roosevelt’s presidency is considered one of the most frenzied and energetic of any president

  •    Roosevelt knew the psychological importance of restoring confidence in the govt. and the economy

  •    His viewpoint was totally political

  •    Was granted by Congress as great as if the US was at a war - electorate supported this
• 1936 Presidential Election

  -       Pretty much a referendum on the New Deal

  -       Roosevelt won it conclusively

  -       This victory empowered him to attack the supreme court
• -       Ludlow Amendment: The idea that America could not go to war without the consent of the public via a national referendum. 
• Isolationism in the 1930s

  -       USA was preoccupied with the Great Depression 

  -       ‘Good Neighbour Policy’  Towards Latin America as opposed to ‘Dollar Diplomacy’

  -       Platt Amendment of 1901 was repealed 
• First Neutrality Act 1935:

  • President can prohibit US ships from carrying US-made munitions to nations at war
  • President can prevent US citizens from travelling on ships of nations at war
• Second Neutrality Act 1936:

  • Banned loans and credits to countries at war
  • No limits on trade in materials useful to war