politics and business in the 1920’s

Politics and Business in the 1920’s• 3 Republicans were elected President during

the ‘20’s:Warren Harding, Calvin Coolidge, Herbert Hoover. Laissez-faire is back!

• All favored Big Business-end of Prog. Reforms• Revenue Acts of 1921 + 1926: Lowered taxes

for the wealthy and businesses.• Trickle Down Theory-economic theory-1980’s• lowering taxes for wealthy-wealthy will

spend more on goods-creating demand and jobs

• Tariffs are raised-encourage buying American

A Return to Normalcy

1920’s Politics

Harding’s Policies

• 1st election with women voters• “Trickle-Down” theory• Corruption > Teapot Dome Scandal led to

distrust of Harding and federal government• Harding dies on Aug 2, 1923 > Coolidge (VP)

finishes term

The Business of America is Business

1920’s Politics

..”We are closer to the end of poverty than at any time in history..”

1920’s Politics

Calvin Coolidge

• Was easily elected in 1924 –good times• Was pro-business• Also followed the “trickle-Down”theory• Prosperity throughout the country – Profits & wages grew, unemployment came down– Called “Coolidge Prosperity”

• Except for farmers > overproduction from the war and high expenses and low prices– No assistance from federal gov’t> vetoed by Coolidge

Reasons for 20’s Prosperity(wealth)Boom Years

• Mass Production-Frederick Taylor used of Scientific Management-study of how to make things efficient-assembly line.-produced more, cheaper-Ford’s Model T-1908-$850 (9 million in the 1920’s)

• Employment-demand for goods led to more jobs, higher salaries-Auto-Steel, Rubber, Suburbs-

• Credit-companies offered installment plans-buy now pay later-75% of all goods w/credit.

• Stock Market Speculation-Buying Stocks-Companies make $$-Risky for investors

Criticism of Wealth/Materialism

• The Lost Generation-• Group of writers who

criticized the materialism of the decade.

• F. Scott Fitzgerald-The Great Gatsby

Social Changes in the 1920’s

• Speakeasies> secret clubs that served alcohol > Prohibition (18th Amendment)

• Radio> became more affordable– 1/3 families owned a radio by mid-20’s– Broadcasted sports, news, comedy shows– 1st broadcast was the Presidential Election results– Charles Lindbergh’s non-stop flight across the

Atlantic

Social Changes in the 1920’s

• Entertainment– Art : Museum of Modern Art (1929) > Georgia

O’Keefe and Pablo Picasso– Sports: Babe Ruth and Ty Cobb; Gene Tunney and

Jack Dempsey– Movies: Charlie Chaplin and silent films• 1927 > The Jazz Singer (Al Jolsen) was the first major

film with sound

Social Changes in the 20’s• During WW1, workers were needed for the

war effort, so many Black Americans moved to Northern Cities such as Chicago, Detroit and NY. -Great Migration

• In NYC many Black Americans moved to Harlem

• Many were artists, musicians and writers who contributed to what became known as

• The Harlem Renaissance.

Jazz

Langston Hughes-PoetMarcus Garvey-Black Newspaper

Owner

Women in the 20’s

• 19th Amendment 1920 • Women’s

Suffrage/vote• Flappers-Young women

who challenge societies view of women

• Smoked +Drank in public

• Short hair+skirts, more makeup + jewelery

The Scopes Monkey Trial• Tennessee didn’t allow

teaching of Darwin’s Theory of Evolution

• Science Teacher John Scopes broke this law.

• A trial followed, and the argument arose, should this scientific theory be allowed in direct conflict to Creationism-Adam and Eve.

The Scopes Monkey Trial

The Monkey Trial

The Scopes Monkey Trial

The Scopes Monkey Trial

Comparing Decades• Socially, the 1920’s are often compared to

which decade?• 1960’s- Why?• African Americans, Women, Illegal Drug Use.• Economically & Politically the 20’s are often

compared to which decade(s)?• 1980’s + 2000’s- Why?• Trickle Down Theory, Favor Wealthy and

Business-Republicans in power

Stock Market Crash

• End of the 1920’s = Economic Slowdown• Election of 1928– Hoover (Rep) vs. Al Smith (Dem)– No Gov’t Intervention vs. Gov’t Intervention– Hoover wins easily

Stock Market Crash

• Get-Rich-Quick-Theory– Buy stock or land> buy low, sell high– Buying on margin– More profits that were made the more speculators that

invested– Stock prices rose so high that people stopped buying– 10/24/29 people begin to sell

• Brokers made marginal call (asking for loans to be paid back• People sold stock to pay of loans• 10/29/29 = all selling and no buying=STOCK MARKET CRASH• Effected everything – banks-businesses-THE PEOPLE

• Marcus Garvey, Flappers, Lost Generation, Frederick Taylor, Trickle Down Theory, Speakeasies, Sacco/Vanzetti, Scopes Trial, Henry Ford, Herbert Hoover, Warren Harding, Calvin Coolidge, Langston Hughes, F.Scott Fitzgerald, George Ruth, Duke Ellington, Charlie Chaplin, Revenue Acts