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The USA 1919-41

History A: The Making of the Modern World. Unit 2C

Exam Board: Edexcel.

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Impact of the First World War

• The US economy boomed during the war because it lent money to, and sold its exports to Europe

• This meant there was a huge demand for US products and grain

• Europe was dependant on US loans• New export markets were now open• Laissez faire was introduced. This meant businesses could

develop.• Tariffs meant imports were more expensive which made

people buy US goods.• New industries• New technology and processes

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Immigration Restrictions

• The Emergency Quota Act worked out the amount of immigrants from each country there were in America. The only 3% of that amount was allowed in as new immigrants

• Many Americans were prejudice against Italians and Eastern Europeans.

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Mass Production

• Created by Henry Ford, Mass Production was a method in which each worker works on a single part of the product and then it is passed down a production line and another worker then works on another part of the product

• This meant that the workers did not need to be trained in making the whole product and just a single part. This meant workers were cheaper as they were less skilled.

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The Boom! (Positive Impact)

• People were paid more which meant they had more money to spend on items they didn’t particularly need.

• Hire Purchase meant that the cost could be paid back over a certain amount of time. This opened up the market to whole new range of customers.

• The boom also meant more workers were employed

• People could also buy shares in businesses. Many people borrowed money from thee bank to buy these shares.

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The Boom! (Negative Impact)• Older industries such as, coal, ship building, cotton and

railways, did not share the prosperity of the 1920s Boom period. This was because:

• They couldn’t use mass production• People were using electricity instead of coal• The huge demand for ships in the war fell dramatically once the war had

finished• People used their new cars instead of using the rail

• After the war, European farming recovered. This meant that Europe was less reliant on US crops.

• Other countries such as Russia and Canada were producing crops which also reduced demand for US crops.

• Farmers were now overproducing which caused prices to fall.

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Entertainment

• The increase in money meant people could now afford to spend money on luxuries and entertainment.

• Jazz music became popular• New Hollywood movies were all about

excitement and glamour.• The 1920s became an amazing period for art

and literature

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Women

• Women had gained more independence while the men where away fighting in the war.

• This caused women to not want to go back to how it was once the men had come back from war.

• Women were paid more• Housework became less time consuming due

to new consumer goods (Fridges, Washing Machines and Vacuum Cleaners)

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Prohibition and Crime 1920-33

• Prohibition was the ban of all alcohol. This included the making, transport and selling of alcohol. It became the 18th amendment to the constitution.

• It was brought into place as some people felt alcohol made people violent and behave anti-socially.

• Prohibition lead to crime. This is because gangsters found selling alcohol was very profitable. Police and the courts were often bribed. Speakeasies were set up. These were illegal bars that sold alcohol.

• There was also a big impact to many peoples health as ‘Moonshine’, illegal alcohol, was often dangerous to consume.

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Racism

• Black people had low-paid jobs or were unemployed.

• They lived in poor areas• Black people were often segregated• The KKK (Ku Klux Klan) wanted a white only

America. They often beat up and murdered black people.

• Lynchings, when someone is killed because they are believed to have done a crime, were common in many states such as Mississippi and Alabama.

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Intolerance• Sacco and Vanzetti were Italian immigrants. Police thought

they were guilty as they were carrying guns when they were arrested. Some witnesses say they saw Italian looking people commit the crime and many more others say they saw Sacco and Vanzetti somewhere else. However, the judge made it clear he wanted them found guilty.

• The teaching of evolution was banned in 1925 in Tennessee. To test the law, John Scopes deliberately taught the theory of evolution. The media had a massive interest in this case. Scopes was proven to have broken the law and was fined $100.

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Bust! – The Wall Street Crash• Before the wall street crash, there were already many problems

with the economy:• No credit control – anyone could get a loan• Too many people were buying shares on loans• Unemployment rising• Tariffs abroad meant US exports decreased• Overproduction by farmers• Low wages• Overconfidence in the boom never stopping.

• The Wall Street Crash started when some investors realised the problems in the economy and started pulling out. People still thought that share prices would increase. Many people started to panic and started selling their shares at any price. A group of bankers started buying $250m in shares to reduce panic. This didn’t work and people continued to panic. Then even the group of bankers started to sell their shares.

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Impact of The Wall Street Crash: The Depression

• 5,000 banks went bankrupt.• Banks needed money so they had to take back loans.• US businesses were required to pay back loans.• The economy went into depression .• European countries relied on these loans. This caused the

export market to collapse and world trade fell by 66%• Businesses had to shut down, reduce production or get rid

of workers. This lead to huge job losses• People lost their savings and could therefore not afford to

may back their mortgages or hire purchase repayments. This meant many families lost their homes and possetions.

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Hoover’s Reaction to the Depression

• Hoover introduced many policies in order to help those suffering in the great depression. Many of these didn’t help and often caused more problems. This was because the damage was done and were not enough by themselves to make a difference. These included:

• The Federal Farm Board. It aimed to make surplus grain and cotton to help bring farm prices back up.

• Tax Cuts. This aimed to give people more money to spend.• Smoot-Hawley tariff. Made imports more expensive so that people would buy US goods• POUR, Presidents Organisation for Unemployment Relief. Encouraged volunteers groups

to help people and businesses• NCC, National Credit Corporation. Secure private banks lent money to less secure banks

and businesses.• RFC, Reconstruction Finance Corporation. A government version of the NCC which made

sure loans were actually paid out.• Federal Home Loan Bank Act. Set up to help local banks loan money to people to buy

homes.

• Some Policies did help however. An example of this is:• Emergency Relief and Construction Act. Had a fund of $1.5 billion to help states with relief

of unemployment

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Roosevelt and The New Deal

• When Roosevelt came to power, he introduced the ‘alphabet agencies’ during his famous 100 days.

• These were much more popular than Hoover’s policies.

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Opposition• Many people were for the new deal. This is because they

felt:• Government had not gone far enough• Government should nationalise banks and businesses• Government controls should protect workers• Government should pay pensions and unemployment benefit

• However, many people were against the new deal as they felt:

• Government had gone to far• Federal government are too powerful• Alphabet were unconstitutional• Government involvement would lead to communism• Businesses work best without government interference• Government spending put USA in too much debt

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The Second New Deal

• Following the New Deal, Roosevelt introduced the Second New Deal. This introduced:

• The Social Security Act – This introduced the old age pension and the unemployment benefit• The Wagner Act – This act replaced the NRA.

Employees were allowed to join a trade union if they wanted to.• Works Progress Administration (NPA) – Built housing for

the homeless in the towns and countryside.