Return to Normalcy (1920 - 1932) Flashcards

1
Q

3

List the Presidents from this era

A
  • Harding: 1921-1923
  • Coolidge: 1923-1929
  • Hoover: 1929-1933
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2
Q

4

Describe Harding’s achievements

A
  • Number of effective appointments
  • Sheppard-Towner Maternity Act 1921
  • Successful cuts to government spending
  • Reduced federal government intervention, achieving ‘return to normalcy’
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3
Q

2

Describe Harding’s effective appointments

A
  • Andrew Mellon, a business magnate, as Treasury
  • Hoover as Secretary of Commerce
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4
Q

1

Describe the Sheppard-Towner Act 1921

A
  • Provided federal aid to states to encourage the building of infant and maternity health centres
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5
Q

2

Describe how Harding cut government spending

A
  • Budget and Accounting Act 1921 made departments present budgets for presidential approval
  • Government spending down from $5bn in 1920 to $3.333bn by 1922
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6
Q

3

Describe Harding’s limitations

A
  • Traditional policies and values
  • Return to before the war
  • Isolationism and conservatism
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7
Q

3

List the controversies under Harding

A
  • Teapot Dome Scandal
  • ‘Ohio Gang’
  • Harding’s behaviour
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8
Q

3

Describe the Teapot Dome Scandal 1921-23

A
  • An oil reserve, originally reserved for the Navy, was put under the control of the Secretary of the Interior, Albert Fall
  • Fall was later accused of leasing oil drilling rights in return for bribes
  • Assistant Attorney General committed suicide in 1923 during investigations
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9
Q

2

Describe the ‘Ohio Gang’

A
  • Harding’s close friends became notorious for their poker parties in the White House
  • Boozy meetings at a private house on K Street
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10
Q

2

Describe Harding’s scandalous behaviour

A
  • Renowned for drinking during prohibition
  • Affairs with many women, some of whom were married
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11
Q

3

Describe the 1917 Immigration Act

A
  • Implemented a literacy test that require immigrants over the age of 16 to demonstrate basic reading comprehension in at least one language
  • Increased the tax paid by new immigrants upon arrival
  • Excluded entry for anyone born in the ‘Asiatic barred zone’ except for Japanese and Filipinos
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12
Q

4

Describe the initial immigration quota introduced by Senator Dillingham

A
  • Set at 3% of the total population of the foreign-born of each nationality in the US as recorded in 1910 census
  • Total number of new immigrant visas each year = 350,000
  • Initially vetoed by President Wilson but later passed by President Harding
  • 1922, the act was renewed for another two years
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13
Q

3

Describe how the immigration quota changed in 1924

A
  • The existing quota was lowered from 3% to 2%
  • The year on which the quota calculations were based was pushed back from 1910 to 1890
  • The % of visas available to the British Isles and Western Europe increased, but visas to Southern and Eastern Europe were limited.
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14
Q

4

Describe the impact of the immigration quotas on Japanese relations

A
  • All but banned in 1924
  • The Japanese were particularly offended by the Act:
  • The Japanese government protested but the law remained
  • Tensions between the two countries increased
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15
Q

2

Describe the impact of the immigration quotas on European relations

A
  • Relations with Europe remained positive despite the restrictions:
  • The global depression of the 30’s and WW2 limited European immigration anyway
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16
Q

4

Describe the strengths of Coolidge’s presidency

A
  • Made more speeches and met more people than any of his predecessors
  • He excluded confidence and appeared calm and unflappable
  • He was honest and incorruptible (he did not smoke, drink or chase women)
  • He extended Republican pro-business policies, including low taxation, low interest rates and minimal government spending
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17
Q

5

Describe the weaknesses of Coolidge’s Presidency

A
  • Was criticised for doing very little during his presidency
  • Slept a lot and said very little, nicknamed ‘Silent Cal’
  • Some believe he suffered a severe depression in 1924 following the death of his son
  • He appeared to have a superiority complex
  • Coolidge refused to stand as president in 1928 due to health concerns
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18
Q

5

Describe how WW1 contributed to the 1920’s economic boom in the US

A
  • European countries bought supplies and loans from the US. New technology was developed.
  • The US overtook Germany as the world leading producer of fertilisers and chemicals
  • By 1920, the US produced and consumed 70% of the world’s oil and was its leading producer of coal and steel
  • On the Great Planes, farms supplied the rest of the world with 1/3rd of its wheat and over 2/3rd of its corn
  • However, wealth was unevenly distributed and small farms particularly struggled
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19
Q

5

Describe how Republican policies contributed to the 1920’s economic boom in the US

A
  • Laissez-faire
  • Rugged individualism
  • Protectionism
  • The Fordney-McCumber Tariff 1922 raised import duties on goods coming into the US to their highest ever levels
  • Mellon handed out tax reductions totalling $3.5 billion to large-scale industrialists and corporations
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20
Q

4

Describe why consumerism rose during the 1920’s

A
  • The growth of electricity
  • Female employment led to increased need for labour saving devices under hire purchase schemes
  • The popularity of entertainment meant more americans brought gramophones
  • 1923 to 1929, the average wage rose by 8%
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21
Q

2

Describe the growth of electricity

A
  • 1912 to 1927, the no of americans living in electrically lit homes 16% to 63%
  • The amount of oil used doubled and gas quadrupled
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22
Q

4

Describe the rise of advertising in the 1920’s

A
  • Companies began to hire psychologists to design campaigns and target specific groups
  • Increasing focus on slogans, brand names, celebrity endorsements and consumer aspirations
  • Lucky Strike encouraged young women to smoke by branding their cigarettes ‘torches of freedom’
  • By 1929, companies were spending $3 billion annually on advertising, five times more than in 1914
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23
Q

2

Describe the growth of the car industry

A
  • 4.5 million cars were on the road by the end of the 1920’s
  • This became the largest industry in the US
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24
Q

4

Describe the benefits of the car industry

A
  • It used many materials that generated jobs for 5 million people
  • Around 90% of petrol, 80% of of rubber and 75% of plate glass made in the US was used by the car industry
  • It promoted road building, travel and hospitality industry
  • The production of automobiles rose from 1.9 million in 1920 to 4.5 million in 1929
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25
Q

5

Describe road building

A
  • The Federal Highway Act of 1921 gave responsibility for road building to central government
  • Highways were being constructed at the rate of 10,000 miles a year by 1929
  • In 1936, the Bureau for Public Roads reported that between 25 and 50% of the roads built over the previous 20 years were unfit for use as traffic was wearing them out
  • Created service industries such as motels and petrol stations
  • In 1929, 15 billion gallons of petrol were used and 4.5 million new cars sold
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26
Q

5

Describe technological change

A
  • Electricity provided a cheaper and more reliable energy source and stimulated other electrical goods like fridges and vacuums
  • Conveyor belt and mass production techniques were developed by the car industry and increased productivity and products
  • Plastics like Bakelite were developed and used in household goods - could be moulded into any shape
  • Other innovations included glass tubing, automatic switch boards and concrete mixers
  • Skyscrapers started being built
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27
Q

5

Describe new business methods

A
  • By 1929, the largest 200 corporations possessed 20% of the nation’s wealth
  • They operated cartels to fix prices and the government turned a blind eye
  • Some corporations were so big that they were able to dictate output and price level throughout the industry
  • They also created holding companies (e.g Samuel Insull bought up 111 electrical companies)
  • There was significant growth in business schools with 89 by 1928, training 67,000 students
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28
Q

3

Describe credit

A
  • This meant people could buy goods even if they did not have enough cash to pay for them immediately
  • This was due to the development of hire-purchase where goods were paid for in instalments
  • About half the goods bought in the 1920s were paid for by hire purchase
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29
Q

5

Describe confidence

A
  • Stocks and shares rose steadily throughout the decade and then rose dramatically in 1928 to 1929
  • Even ordinary people became involved in buying and selling shares
  • The number of shares traded in 1926 was 451m, increasing to 577m in 1927
  • In 1929 there were more than 1.1 billion shares sold
  • Up to 25 million Americans became involved in shares in 1929
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30
Q

5

Describe how religion was a cause of prohibition

A
  • Women’s Christian Temperance Union (WCTU) campaigned hard for prohibition
  • Female reformers argued → clear links between the consumption of alcohol and wife beating and child abuse
  • Many religious groups saw alcohol as the root of the sin and evil values of American people
  • Some religious groups, such as the Methodists and Baptists, joined the crusade
  • Fundamentalist preachers, such as Billy Sunday, persuaded many conservatives that alcohol was evil
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31
Q

7

Describe the employment of women

A
  • 1930, 2 million more women were employed than there had been 10 years earlier
  • These tended to be unskilled low-paid jobs
  • Medical schools only allocated 5% of places to women
  • The number of female doctors in the 1920’s actually decreased
  • Still massive pay inequality
  • Supreme court banned all attempts to set minimum wage for women
  • 1927, women’s textile workers in Tennessee went on strike for better wages but were arrested by the local police
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32
Q

3

Describe progress for women’s rights

A
  • Women were given the vote in 1920
  • Nellie Taylor Ross of Wyoming became the first woman to be elected governor of a state in 1924
  • Bertha Knight Landes became the first female mayor of a city, Seattlein 1926
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33
Q

5

Describe Margaret Sanger

A
  • Wrote articles on contraception
  • The Comstock Act of 1873 banned the distribution of articles on contraception and items through the US mail
  • She was arrested in 1916 for opening the first contraception clinic in the US
  • 1921, she founded the American Birth Control League
  • She began to promote sterilisation for mentally handicapped people
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34
Q

3

Describe limitations in women’s rights

A
  • Only a handful of female politicians
  • The women’s movement failed to get the Equal Rights Amendment Act passed
  • Disenfranchisement of Native American and African American women
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35
Q

3

Describe women’s birth control

A
  • Back street abortions killed up to 50,000 women per year
  • Margaret Sanger
  • Supporters of eugenics often also supported birth control as a method of maintaining racial purity
36
Q

4

Describe ‘flappers’

A
  • Women who opposed traditional attitudes to and appearance of women
  • They were often seen as too extreme and disapproved of by religious groups
  • 1923, formation of the Anti-Flirt Club in NY - protected women/girls from intrusive male behaviour
  • In reality, there was little change for women during this period
37
Q

4

Describe how politics was a cause of prohibition

A
  • The Anti-Saloon League campaigned against the devastating effects of excessive drinking.
  • led by Wayne Wheeler
  • became important political endorsement
  • Introduction of Income tax made up for the lost revenue from alcohol →alcohol had accounted for 30-40% of government revenue from alcohol tax
38
Q

2

Describe how big business was a cause of prohibition

A
  • Big business was told that alcohol was causing their workers to massively decrease in productivity
  • Workers were told that alcohol was being used to suppress them
39
Q

3

Describe how patriotism was a cause of prohibition

A
  • A lot of brewers were immigrants, particularly Germans
  • With the outbreak of WW1, drinking alcohol was likened to supporting Germany
  • The argument was presented that immigrants brought over alcohol and it was harming the true American lifestyle
40
Q

3

Describe how tensions between brewers and distillers was a cause of prohibition

A
  • Brewers argued that beer was healthy and spirits were harmful
  • This was in hope of deflecting criticism from themselves
  • This meant the alcohol industry did not present a united front against prohibition and any resistance was weak
41
Q

2

Describe the rise of speakeasies

A
  • Illegal bars
  • More speakeasies in NY than there had been bars
42
Q

2

Describe ‘moonshine’

A
  • Home-made liquor
  • It was easier to produce illegal spirits than beer so people were drinking stronger alcohol
43
Q

2

Describe the danger of moonshine

A
  • Stills sometimes exploded
  • The liquor produced was incredibly strong and unregulated so could be deadly
44
Q

4

Describe the rise in organised crime

A
  • Linked to prohibition
  • St Valentine’s day massacre 1929 - 7 mmebers of Chicago’s North Side Gang shot dead in what was meant to be friendly meeting
  • ‘Big Bill’ Thompson, the Mayor of Chicago, did almost nothing to control the gangsters in the city - formed open alliance with Al Capone
  • By the time Al Capone went to jail in 1932, it was estimated his gang had made over $70 million in illegal business
45
Q

3

Describe how prohibition led to a rise in corruption

A
  • Bootleggers made huge amounts of money so were able to easily bribe the police
  • Policemen didn’t believe in the law they were policing
  • Policemen made very limited money and were often from the same backgrounds as the gangsters
46
Q

5

Describe how prohibition affected the economy

A
  • Brewing industry suffered badly. St Louis had 22 breweries before but only 9 re-opened after 1933
  • Breweries, distilleries and saloons closed which led to a loss of thousands of jobs and lead to some dereliction of property
  • In New York, almost 75% of the state’s revenue was from liquor lax - this was lost
  • Prohibition cost the government $11 billion in loss of tax revenue
  • Prohibition cost the government $300 million to enforce
47
Q

4

Describe the loopholes people used to get around prohibition

A
  • Alcohol for medicinal purposes was not illegal
  • Alcohol for industrial use was not illegal (Poison was put in this alcohol and lead to many deaths)
  • Legal to drink in international waters (Booze cruises)
  • Alcohol for religious purposes was not illegal
48
Q

3

Describe the trial of Sacco and Vanzetti

A
  • 2 italian immigrants put on trial and eventually executed for anarchy in1927
  • accussed of murdering paymaster during armed robbery in Massachusetts, 1920
  • Symbolised anti-immigrant fever
49
Q

5

Describe the causes of the KKK revival

A
  • The Birth of a Nation film, released 1915, showed the Klan saving white families from violent African-Americans
  • White war veterans were increasingly militant
  • Increasing industrialisation and urbanisation brought people together
  • Black migration to the North increased tensions
  • Southern whites also resented the arming of African-Americans during the war
50
Q

4

Describe the revival of the KKK in the first half of the 1920’s

A
  • 1920, 100,000 members
  • 1925, claimed to have over 5 million members
  • Lynchings and racially motivated attacks increased
  • March on Washington 1925: 25k people in full regalia
51
Q

2

Describe the suppression of African Americans

A
  • Rumours that AA were turning pro-German during the war
  • Black Press strongly investigated
52
Q

4

Describe the decline of the KKK in the second half of the 1920’s

A
  • 1925, one of its leader, Grand Wizard David Stephenson, was convicted of a sexually motivated murder
  • Stephenson produced evidence of the Klan’s illegal business in hope of a shorter sentence
  • Discredited the Klan and led to a decline in membership
  • Public opinion began to turn against the KKK
53
Q

2

Describe the patriotism of African Americans

A
  • 200,000 AA served abroad
  • Returned with stronger black conscience and renewed energy for civil rights protest
54
Q

2

Describe the Black Press

A
  • 200 weekly papers and six monthly magazines representing AA views
  • NAACP periodical, The Crisis, 1917-1918, circulation increased 41,000 to 74,000
55
Q

4

Describe the Monkey Trial 1925

A
  • Six states decided to ban the teaching of evolution in their schools
  • A Tennessee biology teacher called John Scopes deliberately taught evolution in class and was arrested and put on trial
  • Scopes lost the trial and was convicted of breaking the law
  • However, the trial was a disaster for Fundamentalist public image and they were mocked in the media
56
Q

4

Describe the events of the Wall Street Crash

A
  • 24th October 1929 - ‘Black Thursday’. Panic and prices falling, 13 million shares sold.
  • 25th October 1929 - Bankers meet at midday and pour money into the markets in an attempt to support them. Prices steadied.
  • 26th October 1929 - Hoover claims the panic is over and that banking would soon recover
  • 29th October 1929 - ‘Black Tuesday’. The worst day ever with 16.5 million shares traded. Shares lost all value and many lost everything. Suicides reported.
57
Q

4

Describe how the banking system was a cause of the 1929 Wall Street Crash

A
  • Banks to regulate themselves without government interference
  • The Reserve Banks acted in the interest of bankers rather than the country as a whole
  • In the 1920’s there were over 30,000 banks in the US and most of them were small and unstable.
  • The Federal Reserve Board favoured low interest rates and in 1927 it lowered them from 4% to 3.5%. This encouraged easy credit and the ‘bull market’
58
Q

4

Describe how overspeculation on the stock market was a cause of the 1929 Wall Street Crash

A
  • More and more Americans were gambling their money on shares, with the presumption that prices would continue to rise
  • Lack of government regulation allowed speculation to continue
  • The stock market value of shares increased from $27 billion in 1925 to $87 billion by October 1929
  • By summer 1929, there were 20 million shareholders in the US
59
Q

5

Describe how the availability of easy credit was a cause of the Wall Street Crash

A
  • This allowed people to buy with money they didn’t have
  • Firms allowed customers to pay in instalments in hire purchase
  • ‘Buying on the margin’ was the practice of buying shares on credit
  • As prices started to slow down and then fall problems began
  • Over 75% of the purchase price of shares was borrowed and this had created artificially high prices
60
Q

5

Describe how loss of confidence was a cause of the 1929 Wall Street Crash

A
  • The market was only maintained by peoples financial confidence
  • In autumn 1929, experts started to sell their shares before prices fell further and small investors panicked
  • This led to a rush to sell shares and prices fell
  • Thousands of investors lost millions of dollars
  • This was partly caused by rumours that the Federal Reserve Banks was about to make credit less available and experts were starting to sell their shares
61
Q

6

Describe the effects of the 1929 Wall Street Crash

A
  • The collapse of businesses with individuals losing billions
  • Reduced consumerism and investment
  • Job losses
  • The collapse of credit with loans called in and new ones refused
  • Confidence in the American economy tanked
  • The President of Union Cigar died after falling from a New York hotel when stock in his company fell from $113.15 to $4 in a single day
62
Q

5

Describe how falling demand for consumer goods was a cause of the Great Depression

A
  • The construction boom came to an end in 1928
  • Industrial production fell in the two months before the Wall Street Crash
  • Unequal distribution of wealth meant that almost 50% of American families had an income of less than $2,000 a year (the minimum needed to survive)
  • The market became oversaturated
  • The US could not sell its market surplus abroad as Europe was still recovering from the war and had responded to America’s high tariffs with similar
63
Q

2

Describe how the instability of ‘get rich quick’ schemes caused the Great Depression

A
  • There was huge over speculation and gambling on the markets
  • In the early 1920’s Charles Ponzi conned thousands into investing in his ventures, promising 50% profit within 90 days
64
Q

6

Describe the Florida Land Boom and how it was a cause of the Great Depression

A
  • Between 1920 and 1925, the population of Florida increased from 968,000 to 1.2 million
  • Parcels of land were being sold to wealthy northerners and people began to invest in developments
  • There were scandals of land being falsely advertised
  • Demand tailed off in 1926
  • Hurricanes in 1926 killed 400 people and left 50,000 homeless
  • The Florida land boom collapsed leaving the state strewn with half-finished, storm-battered developments
65
Q

6

Describe how problems with agriculture was a cause of the Great Depression

A
  • Post-war, demand fell and prices dropped
  • Demand for natural fibres (such as cotton) dropped as they were replaced by cheaper artificial fibres
  • Prohibition cut demand of crops used for alcohol production
  • Farmers went into debt trying to mechanise
  • There was a big divide between urban Northerners and rural Southerners
  • By 1928, half of all US farmers were living in poverty
66
Q

3

Describe how problems with old industries was a cause of the Great Depression (coal)

A
  • Coal mining was in decline as gas and electricity were used more commonly
  • US coal prices were undercut by cheap polish coal
  • This led to many mine closures and unemployment.
67
Q

3

Describe how problems with old industries was a cause of the Great Depression (textiles)

A
  • Lowering of tariffs on wool and cotton in 1913, increased competition from abroad
  • The development of the artificial fibre ‘rayon’ undercut wool, cotton and silk
  • Many textile mills in the North closed down or moved south for cheaper labour.
68
Q

3

What work did Hoover do to assist farmers in the Great Depression?

A
  • Grain Stabilisation Corporation set up 1930
  • $47 million in federal loans to farmers
  • Federal Farm Board designed to help farmers and maintain agriculture
69
Q

2

Describe the problems with Hoover’s assistance to farmers in the GD

A
  • Many of these measures did not go far enough:
  • By 1932, 25% of farmer had lost their land and they blockaded roads to demand more support
70
Q

2

What did Hoover do to assist banks in the Great Depression?

A
  • Gave $2 billion to rescue banks
  • Home Loan Bank Act of 1932
71
Q

3

What did Hoover do for infrastructure during the Great Depression?

A
  • Construction of the Hoover Dam on the Colorado river
  • Emergency Relief and Construction Act 1932 gave $300 million to state governments
  • Reconstruction Finance Corporation, set up 1932, spent $1.5 billion on roads, bridges and buildings
72
Q

3

What did Hoover do about tax during the Great Depression?

A
  • International Revenue Service and Justice Department prosecuted gangsters, including Al Capone, for tax evasion
  • Closed tax loopholes
  • Revenue Act 1932 increased taxes on businesess and corporations
73
Q

3

Describe the Smoot-Hawley Tariff 1930 under Hoover

A
  • Set very high tariffs on imports and exports
  • This removed the US from world trade and made the depression worse both at home and abroad
  • Other countries retaliated with tariffs of their own and US imports and exports fell by 67%
74
Q

5

Describe the March on Washington 1932

A
  • WW1 war veterans asking to be allowed access to their war pensions, which were not supposed to be available till 1946
  • 12.3k pensioners and unemployed
  • Would have cost $2.3bn
  • Hoover ordered General Douglas MacArthur to deal with it
  • The General dispersed them with tear gas, machine guns and tanks
75
Q

5

Why did Hoover take so longer to respond to the Great Depression?

A
  • It was not immediately apparent to anyone how severe the crisis was going to be
  • Current economic theory suggested it would sort itself out
  • Rugged Individualism
  • He believed in a hands off government and instead empowered voluntarism (whereby people and charities supported the poor)
  • He did not wish to overstep his constitutional boundaries
76
Q

2

Describe how the Great Depression affected unemployment

A
  • Unemployment increased from 3% in 1929 to 25% in 1933
  • Labour Research Association estimated 17m unemployed
77
Q

4

Describe the uneven distribution of unemployment in the GD

A
  • New York State had 1 million unemployed
  • Toledo, Ohio was at 80% unemployment
  • Unemployment was 4 to 6 times greater among African Americans
  • There was much higher unemployment amongst working class women
78
Q

3

Describe how the Great Depression affected the economy

A
  • The growth rate went from 6.7% in 1929 to (-14.7%) in 1932
  • Production of coal was the lowest since 1904 with 300,000 unemployed in the industry
  • Iron and steel production fell by 59%
79
Q

4

Describe how the Great Depression affected the cities

A
  • Factories began to close down
  • Rapid rise in industrial unemployment meaning by 1933 alomst 1/3rd workforce out of work
  • In 1932, estimated 2 million homeless
  • Slums made from tin, wood and cardboard became known as ‘Hoovervilles’
80
Q

6

Describe how the Great Depression and Dust Bowl affected agriculture

A
  • Long-term agricultural decline started in the early twenties
  • 1928-32, heat waves, drought and wind-erosion created the ‘Dust Bowl’
  • Demand for crops was low due to poverty so prices fell
  • Oklahoma, Colorado, New Mexico and Kansas were the worst affected
  • Dust storms affected 20 million hectares
  • More than 1 million people left their homes to seek seasonal work in fruit-picking in the West
81
Q

3

Describe sport in this period

A
  • ‘Golden Age of Sport’
  • 1924, 67k watched the football game between Illinois and Michigan that took place in Baltimore
  • 1926, 145k saw the boxing match between Jack Dempsey and Gene Tunney
82
Q

4

Describe baseball

A
  • Star players were Babe Ruth and Lou Gehrig
  • New stadiums such as West Side Grounds in Chicago
  • The development of the cork-centred ball
  • 1920, the Negro National Baseball League founded
83
Q

5

Describe radio

A
  • First commercial station (KDKA) founded in Pittsburgh, 1920
  • There were 500 stations by 1922
  • First national network (NBC), founded 1926
  • Between 1923 and 1930, 60% of families bought a radio
  • By 1929, sales were worth $842 million
84
Q

4

Describe cinema

A
  • By the 1920s, it was the 4th largest industry in terms of capital investment
  • 10 million people visited 20,000 cinemas everyday
  • Starred actors like Clara Bow, Theda Bara and Douglas Fairbanks
  • 1927, the first sound film, ‘The Jazz Singer’
85
Q

5

Describe jazz

A
  • ‘Jazz Age’
  • Originated with black slaves
  • Became popular with white, middle-class youth
  • Ladies Home Journal publishes ‘Does Jazz put the Sin in Syncopation?’
  • Some cities, including New York and Cleveland, prohibited public performances of jazz
86
Q

3

Describe the rise in organised crime

A
  • Linked to prohibition
  • Al Capone
  • St Valentine’s day massacre