The Roaring 20’s

Economic Boom, Social Changes, Prohibition, and

Republican Domination

Economics of the 1920’s

Agriculture:• Decline of agriculture in America:

– 1918- 16% of nation’s wealth– 1920- 9% of nation’s wealth

• 1/3 of population is broke

America Economic Boom

Automobile industry spurs other industries:

• rubber• steel• petroleum• chemicals• mechanics/garagesHenry Ford:• Revolutionizes production

w/ assembly line

Other key industries:

• Appliances• Chemicals• Other metals• Entertainment• Road construction• Suburbia (home

construction)

Stock Market of the 20’s

• Corp profits fueled by expansion……• DOW generally bullish throughout

early 20’s• 1928-1929: one of the greatest bull

markets of all time• Speculation fueled the market

– Buying on margin: purchasing a stock w/ a loan and

using the stock as collateral

Social ChangesWomen

• 1920: 19th

Amend gives

women vote

• Women begin

to challenge

“accepted” role

in society

Red ScareAnti-Radical/Immigrant Hysteria + Witch Hunt

• NY Assembly expels 6 mild socialists against Harding’s objection

Two events epitomize the hysteria:1. Att. Gen A. Mitchell Palmer violates civil liberties

– 600 deported, no habeus corpos– J. Edgar Hoover ~ Dept of Justice anti-radical division

2. Sacco & Vanzetti– Radical Italian immigrants– Wrongly accused of a botched robbery/murder– Burden of proof never meet– Gross mistrial

Warren G. Harding 1921-23

“return to normalcy”“Ohio Gang”No personally

corrupt, but perhaps the most corrupt admin

“Do nothing Pres”

Calvin Coolidge 1923-1929

silent cal

“puritan in Babylon”

“the business of america is business”

Herbert Hoover 1929-1933

Competent!

Sec of Commerce ’20-’28

Gets bad rap as conservative, but truly progressive

Andrew MellonMellon

• Sec of Treasury ‘21-’32

• Laissez faire:– Cut taxes– ’32: advises H.H. to

purge system of rottenness

by 1929

US income greater than:• Brit• Ger• France• Japan• Canada• And 17 other

countries…….COMBINED