ACHIEVMENTS:
✅ a number of able appts incl Herbert Hoover as Secretary of Commerce.
✅ Sheppard-Towner Maternity Aid Act: provided federal aid to states to encourage the building of infant and meternity health centres.
✅ cuts made to govt spending: the Budget and Accounting Act made depts present budgets to the President for approval. Govt spending had fallen over $1500mil by 1922.
✅ he attempted to make govt more efficient: called for a less interventionist govt but one that was involved in the country's affairs and allowed big business to expand and essentially control the country once again.
✅ his belief in limited govt intervention reflected the popular view of the country at the time.
✅ harding achieved his aim of a return to normalcy of as little govt as possible.

SHORTCOMINGS:
❌ his personal reputation was tainted by extramarital affairs.
❌ achieved little due to his belief in limited govt.
❌ made some dubious appts.
❌ made some dubious appts and had extensive corruption in his presidency - for example, the Alien Property Custodian had accepted bribes - incl the Teapot Dome Scandal.

sworn in as President after Harding's death.

QUALITIES:
✅ thought to be a man of the people.
✅ believed 'the business of america is business' and did very little in office other than making more speeches and meeting more people.
✅ exuded confidence and was a popular president.
✅ appeared honest and incorruptabe.
✅ his election victory of 1924 led to an extension of Republican pro-business policies, with low taxation, low interest rates and minimum govt spending.

FAILINGS:
❌ was criticised for his low work rate.
❌ some said he had a superiority complex and did little to address the US's problems as a consequence.
❌ known as 'Silent Cal' due to him sleeping a lot and doing very little.

AIMS:

• wanted to avoid involvement in any further conflicts after what they thought WWI was as selfish rivalries of European powers.
• growing fear of communism after the 1917 Bolshevik Revolution - this ideology was seen as a threat to the economic and political ideology of the US.
• the US wanted to maintain status quo in naval power and the far east. they wanted to stop any further naval races - especially with Japan.
• the US wanted to protect their interests - especially trade - in far east by maintaining status quo and open door policy.
• determined to maintain Monroe Doctrine in Latin America.

reasons:

• the US wanted to prevent renewal of the Anglo-Japanese Alliance in 1922.
• america was scared of growing Japanese inluence and wanted to stop their alliance with on of their own allies.
• Haring left foreign affairs with the Secretary of State - Hughes - who favoured disarmament.
• Japan posed threat to some areas of America's sphere of influence.

achievements:
✅ first agreement on arms limitation and brought stability and peace in pacific - made between the US, UK, Japan, France, and later, Italy.
✅ agreement for each to reduce tonnage of battleships for 10 years.
✅ signed the 4 power treaty which agreed to respect each country's interests in the far east and maintain open door policy in China.

limitations:
❌ imposed no limits on size of air force or armies.
❌ there was no method of enforcing agreement.

international agreement between US and France.

signed because; french was keen on an alliance with the us; the us wanted minimal commitment to the european powers so this was a way of placating the french.

this encourage the senate to ratify it because it did not sanction the use of war if attacked and also did not commit the USA to help any country that was threatened.

LOANS:

• lent money to country after the war to restore prosperity and prevent the spread of communism.
• insisted all war debts must be repaid - used debt repayments as a threat to european powers - seen when they threatened harsher repayment terms to Britain after they tried to force up rubber prices by restricting supplies in the B. Empire.

THE DAWES PLAN:

• reduced German reparation payments slightly until their economy started to improve.
• gave Germany and immediate loan.

THE YOUNG PLAN:

• scaled down and extended reparations even more.
• the US was effectively paying itself as they were giving loans to Germany, for them to use to pay their reparations to the Allies, who were using this to pay off their war debts to the US.

whilst the us had reverted to isolationism, they continued to pursue and protect their interests in latin america.

• party due to monroe doctrine and good neighbour policy.

ECONOMIC INVOLVEMENT:

• us investment in latin america doubled in the years 1924-1929.
• in 1923, General Electric set up the American and Foreign Power Company and controlled the provision of electricity in 8 latin american countries.
• the State Dept established plans for countries that requested US investment - the Kemmerer Plans helped to stabilise and develop the economics of such currencies by offering advice advice on sound currency and central banks.
• this investment did also mean though that us involvement was increased to protect these investments - the us was reluctant to sanction military intervention though because it was expensive and unpopular with tax payers.

SETTLING DISPUTES:

• the US gave Colombia $25mil in compensation for its support for the independence of Panama in 1903.
• in 1925, US troops were taken out of Nicaragua to improve relations but had to be sent in again the following year due to the outbreak of a civil war.

LAISSEZ-FAIRE:

• Coolidge held the view of many that govts should be involved as little as possible in the daily running of the economy.
• if businessmen were left alone, it was thought that high profits, more jobs and good wages would be the result.
• low taxes and few regulations meant businessmen could chase profits and laissez-faire policy contributed to the prosperity of the US.

RUGGED INDIVIDUALISM:

• idea that people achieved success by their own hard work.
  

PROTECTIONISM:

• republican govts put tariffs on imported goods to limit competition from foreign imports.
• this encouraged the purchase of american goods.
• 1922 Fordney-McCumber Tariff raised tariffs on goods coming into the US to the highest level ever.
• reduction of income tax left people with more disposable income to spend on consumer goods.

TECHNOLOGICAL CHANGE:

• development of electricity fundamental to advancement of technology - it provided a cheaper, more reliable and flexible form of power to factories and other industries as well as stimulating other associated electrical goods industries.
• conveyor belt and mass production techniques of a production line adopted by the car industry - sped up production, improved productivity and led to greater profits.
• new materials - types of plastic like Bakelite.

NEW BUSINESS METHODS:

• growth in corporations using more scientific business methods.
• by 1929, the largest 200 corporations possessed 20% of nations wealth.
• companies operated cartels to fix prices and govt turned a blind eye to this.
• certain corporations - e.g. US Steel - were big enough to dictate output and price level throughout the industry.
• holding companies were est.
• introduction of specialisms in roles for production, design, marketing or accounts.
• significant growth of business schools.

REASONS FOR CONSUMERISM:

• by 1927, 2/3 homes had electricity.
• growth of electric power encouraged a more widespread use of electrical goods.
• growth in female employment led to growth in labour saving devices.
• hire purchase schemes made it easier to buy goods on credit.
• popularity of entertainment meant more purchases of radios and gramophones.
• for majority of workers in industry, wages increased - between 1923-29 wages rose 8%.

ADVERTISING:

• techniques developed rapidly during 20s.
• companies began to hire psychologists to design campaigns and target specific groups - women were encouraged to smoke in public with cigarettes marketed as 'torches of freedom'.
• advertising began to emphasise slogans, brand names, celebrity endorsements and consumer aspirations.
• growth in industrial production required a continuous market.
• no longer enough to sell a durable product that would last.

CREDIT:

• growth of credit made it easier for people to buy goods without enough cash to pay immediately.
• due to development of hire purchase where goods could be bought in installments.
• about half the goods sold in the 1920s were paid for by hire purchase.

THE ASSEMBLY LINE:

• Ford introduced this more efficient method of producing cars.
• the parts moved past stationery workers as opposed to the other way around.
• 1913: Ford factory in Detroit was producing 1 car every 3 minutes.
• 1920: same factory was producing 1 car every 10 seconds.

THE WORKFORCE:

• Ford walked around his factory and encouraged his workers.
• in 1914, Ford announced he was doubling wages to counter the monotonous work of an assembly line that had led to a high turnover of staff.
• he reduced the hours of shifts so the factory was operating a 3 shift system and working 24 hours a day.
• Ford brought down the price of cars and made them affordable to americans.
• he introduced hire purchase as a method of credit.

BENEFITS:
✅ revolutionised american industry.
✅ used so much steel, wood, leather, rubber and petrol that it provided jobs for more than 5 mill people.
✅ 90% of petrol, 80% of rubber and 75% of plate glass produced in the US was consumed by the car industry.
✅ transformed buying habits and made hire purchase the norm.
✅ promoted road building, travel, leading to motels and restaurants being built in places previously considered out of the way.
✅ production rose form 1.9 mill in 1920 to 4.5 mill in 1929.

ROAD BUILDING:

• break of policy from laissez-faire.
• Federal Highway Act of 1921: gave responsibility for road building to central govt.
• highways were being constructed at 10,000 miles per year by 1929.
• new roads could not keep to pace with traffic though.
• it was predicted between 25-50% of new roads were unfit for use in 1936 due to the sheer amount of new traffic wearing them out.
• growth of new service industries: garages, motels, petrol stations and used car salerooms.
• goods could be moved easier from factories to markets.

stock market boom:

• seemed to link to prosperity of US in 20s.
• values of stocks and shares rose steadily, and dramatically in 1928+29.
• became a common occurrence for ordinary working people to become involved.
• most companies value rose so people were prepared to risk buying shares.
• people began to buy shares without enough money to pay the full amount: they would make a deposit; borrow to pay the rest; then sell the shares in a couple of weeks when value had risen and profit had been made - called 'buying on the margin'.
• number of shares traded in 1926 was about 451 mill increasing to 577 the following year.
• by 1928, there was a bull market.

IMPACT OF WWI:

• over a mill women had helped with war effort and had received some greater opportunities in the absence of men.
• the war proved women could do jobs just as well as men and encouraged greater freedoms; especially habits like smoking, drinking and going out unchaperoned.
• war was significant factor in 19th amendment and women gaining the vote.
• consumer boom in 1920s provided labour saving devices, allowing some women to enter the workforce and gave others more opportunity for leisure activities.
• popularity of cinema, radio and dance halls provided further opportunities for women.

EMPLOYMENT:

• by 1930 2 mill more women than 10 years earlier were employed.
• these did tend to be unskilled, low-paid jobs though.
• 1/3 of university degrees were awarded to women in 1930.
• only 4% of university professors were women though.
• the number of female doctors actually declined in the 1920s though.
• men were paid more for doing the same job.
• the Supreme Court banned all attempts to set a minimum wage for women.

POLITICS:

• women given the vote in 1920.
• 1924: first female elected governor of a state - Nellie Ross of Wyoming.
• 1926: Bertha Landes became first female city mayor of Seattle.

BIRTH CONTROL:

• lack of contraception forced many women into dangerous back street abortions.
• Comstock Act of 1873 had banned the distribution of articles written on contraception.
• 1921: American Birth Control League founded by Margaret Sanger.
• supporters of eugenics supported birth control as a way of discouraging poor from 'breeding'.

SPORT:

• grew in popularity - and even more due to radio.
• baseball, football, horse racing and tennis captured attention of many.
• baseball was most popular with stars like Babe Ruth holding a major influence over the public.
• sport was still largely segregated and african american players were excluded from the major league teams.
• the leagues specifically for african american (particulary in baseball) teams were among the biggest african american owned businesses in the us despite the players earning less than half of their white counterparts.

RADIO:

• grew dramatically from establishment of first commercial radio station - KDKA in 1920.
• first national network NBC set up in 1926.
• a typical model cost $150 and was bought on credit.
• between 1923-30 60% of all american families purchased a radio.
• held huge attraction for advertising and sponsorship, which often paid for programmes.

THE CINEMA:

• by 1920, cinema industry was 4th largest in terms of capital investment and it employed more people than Ford or General Motors.
• movies offered escape and excitement.
• actors became huge stars and the first real celebrities.

JAZZ MUSIC:

• originated with black slaves who were encouraged to sing to increase production.
• first was not popular among white people because of the genres heritage.
  became popular with white middle-class youth - especially flappers - in 20s and was seen as another fall in moral standards.
• some cities, like NYC, prohibited the public performance of jazz in dance halls - but this only made it more exciting to the youth and it became a great attraction of speakeasies.

WHY WAS IT INTRODUCED:

• female reformers had argued there were links between the consumption of alcohol, wife beating and child abuse.
• industrialists like Ford were concerned that drinking reduced efficiency and output at work.
• many religious groups saw alcohol as the root of sin and evil value of american people.
• felt that prohibition would enhance the traditional, encouraging people to be hard working and thrifty.
• americas participation in WWI as many brewers were of German origin and therefore prohibition seemed patriotic.

WHY DID IT FAIL:

• it simply drove drinkers underground.
• huge numbers of people were prepared to break the law to produce and consume alcohol.
• there were more speakeasies than there had been legal saloons in a very short period of time.
  -it was an impossible law to enforce - large coastline of US meant smuggling was difficult to prevent.
• Internal Revenue Service was set up to enforce prohibition but never had more than 2500 agents and some of these were paid hands of gang leaders.

THE END OF PROHIBITION:

• clear opposition by early 30s.
• 1928 presidential candidate Al Smith, advocated abolition of prohibition.
• Hoover - who defeated him - set up the Wickersham Commission to investigate Prohibition and it reported how prohibition was impossible to enforce but still recommended a continuation of it.
• Roosevelt finally abolished the measure in 1933 for the brewing industry to create more jobs, taxes and duties.

gangsters and organised crime:

• prohibition led to a growth of criminal gangs.
• mobsters controlled territories by force and established monopolies in the sale and manufacture of alcohol.
• gang leaders saw themselves as businessmen.
• gangsters were easily able to control politicians with 'Big Bill' Thompson - Mayor of Chicago - doing little to nothing to control the activities of gangsters in his city.
• Al Capone was the most notorious.

BENEFITS
✅ deaths from alcoholism had fallen 80%.
✅ reduced number of incidents on roads and drink related accidents at work.
✅ average consumption of alcohol fell.
✅ arrests from drunkenness fell.
SHORTCOMINGS:
❌about 50,000 people died from poisoned alcohol.
❌ prohibition helped to create and further develop organised crime.
❌ after prohibition it was difficult for the brewing industry to recover and rebuild.

CHANGING ATTITUDES TOWARDS IMMIGRANTS:

• became less welcome in 20th century due to competition for jobs.
• involvement in WWI fuelled anti-German feelings and encouraged support for restrictions on immigration.
• most americans did not want to be dragged into another war - they blamed WWI on european rivalries.
• immigrant ghettos began to appear in the big northern cities of america.
  

CHANGES IN IMMIGRATION POLICY:

• 1917 Literacy Act - a foreigners wishing to enter USA had to take a literacy test to prove they could read a short passage in English. Many from poorer countries could not afford lessons and failed the test.
• 1921 Immigration Quota Act - new immigrants were allowed in as a proportion of the number of people who had been in America in 1910. The figure was set at 3% per year.
• 1924 National Origins Act - reduced quota to 2% of the 1890 census: there had been more Northern Europeans in this era so proportionally more were allowed to enter.
• 1929 Immigration Act - restricted immigration to 150,000 per year. No Asians at all. Northern and Western Europeans were allocated 85% of places. By 1930, immigration from Japan, China and Eastern Europe had virtually ceased.

the sacco and vanzetti case:

• in 1920, two Italian labourers were charged with the murder of Fred Parmenter only on the ground that he had described his attackers as slim with olive skin before dying.
• the case was incredibly public and despite general support for the two italians, they were executed in 1927.
  -the trial was reported on globally and exposed the intolerance of US society.
• as italian immigrants, the two men were victims of racial discrimination.
  it also exposed the unfairness of the american legal system.
  in the 1970s, the two men were pardoned.

REASONS FOR REVIVAL:

• the release of 'Birth of a Nation' film.
• in reaction to new groups of immigrants and migrants in workforce upon return of veterans from war.
• increasing industrialisation and growth of new towns and cities.
• many of the workers in these cities were immigrants or migrants.
• southern white people resented the arming of african americnas during the war.

ORGANISATIONS AND ACTIVITIES:

• klan members were WASPs.
• fighting for 'native, white, Protestant supremacy'.
• anti-communist, anti-african americans, anti-jew, anti-catholic and against all foreigners.
• dressed in white with hoods to hide the identity of the members who attacked their victims at night.
• white colour symbolised white supremacy.
• carried US flags and burnt crosses at their night time meetings.
• by 1925 the klan claimed to have over 5 mill members - far more than the 100,000 in 1920.
• attracted members particularly in south, white, protestant and racist.
• Oregon and Oklahoma had governors who were members of the klan.
• members carried out lynchings and mutilated anyone they considered to be their enemy.

DECLINE OF THE KKK:

• after 1925 when one of its leaders - David Stephenson - was convicted of a sexually motivated murder.
• when he was refused pardon, Stephenson produced evidence of illegal klan activities.
• this discredited the klan and led to a decline in membership.
• there were divisions about tactics and certain politicians who had originally supported the klan were quick to dissociate themselves when public opinion turned negatively against the actions of the KKK.

showed the differences in beliefs of rural and urban americans at the time.

trial was a disaster for christian literalists and fundamentalists as Bryan was shown to be ignorant and confused while the media mocked the beliefs of those who opposed the theory of evolution.

FALLING DEMAND FOR CONSUMER GOODS:

• had a knock on effect, slowing down spending and investment.
• by 1929, most americans who could afford a car already had one.
• new found wealth of 1920s was not shared by everyone with almost 50% of families having an income less than the minimum needed to survive.
• there was overproduction from companies as manufacturers didn't see their was a limit to what could be bought.
• the us also couldn't sell to other countries, particularly europe, who were still struggling with dbet repayments.
• the us had put up high tariffs in the 20s and other countries had responded.
• an ideal outlet for overproduction was blocked therefore.

INSTABILITY OF 'GET RICH QUICK' SCHEMES:

• drawbacks to credit.
• large scale speculations.
• opportunities for confidence tricksters and crooks.
• florida land boom: people began to invest their money in unseen developments hoping to sell and make quick profit; demand tailed off in 1926 leaving thousands bankrupted as the boom collapsed.

PROBLEMS WITH AGRICULTURE:

• falling demand after the war led to falling prices and america was producing more food than was needed.
• growth of synthetic fibres led to fall in market for natural ones, such as cotton.
• prohibition cut the demand for grain previously used in the manufacture of alcohol.
• technical advances meant more crops could be produced on same or reduced acreage worsening overproduction.
• greater use of machinery meant fewer working animals were needed and therefore food for these animals.
• after war, european farmers could grow enough to meet their demands.
• distinct division between urban and rural areas as many towns and cities in north experienced growth and prosperity in North whilst, due to problems with agriculture, this did not happen in the south.
• led to lower living standards and poverty in these disadvantaged areas of the us.
• by 1928, half of all us farmers were living in poverty.

PROBLEMS WITH OLD INDUSTRIES:

• staple industries faced long-term difficulties in the 1920s.
• coal mining and the textile industry were stagnating or in decline.
• demand for coal fell as gas and electricity was more widely used.
• combined with foreign competition - e.g. cheap coal from poland - many mines were closed and miners made redundant.
• lowering of tariffs on wool and cotton in 1913 meant us textile industry faced stiff competition from abroad.
• man made fibre of rayon was cheaper to produce than wool, cotton or silk.
  textile mills in the north closed down or moved south where there was cheap labour.

the banking system:

• out of date by 20s.
• current system allowed banks to regulate themselves without govt intervention.
• the Reserve Banks acted in interests of bankers not nation.
• local banks were not part of the centralised system. there were over 30,000 banks in the usa in 20s and many were small and unable to cope with financial problems.
• Federal Reserve Board wanted to keep market buoyant so favoured low interest rates. this encouraged easy credit. in 1927 it lowered rates for 4% to 3.5% to encourage the 'bull market'.

over-speculation on the stock market:

• in 1928, shares did not rise as much as in previous years; due to companies not selling as many goods so had falling profits.
• fewer people were willing to buy shares and so there was a confidence drop in the market.
• this was a warning - but prises rose again, greed took over and speculation recurred.
• the complete lack of regulation of the market encouraged increasing speculation.
• 1925: stock market value of stocks = $27bn.
• Oct 1929 = $87bn.

availability of easy credit:

• made it easier for people to buy goods despite not being able to actually afford them.
• practice of hire purchase, instalment purchases - incl buying shares 'on the margin' (on credit) was prominent.
• the easy credit policies, on the part of the Fed Reserve Board, further encouraged these practices.
• worked as long as prices were rising.
  when the price rise started to slow - or some fall - problems set in as 75% of the purchase price of shares was borrowed therefore creating artificially high prices.

loss of confidence:

• market structure had been maintained by peoples confidence in it.
• in autumn 1929, some experts started to sell their shares heavily before value fell even further and small investors panicked.
• this led to a collapse of prices and thousands of investors lost millions.
• there were rumours the Fed Reserve Bank was about to tighten credit facilities.
• there were rumours that those who had made their fortunes on the stock market were selling also.

29 Oct 1929:
black tuesday
nearly 16.5 mill shares were traded. shares lost all value and many shareholders lost everything.

EFFECTS:

• important trigger in worsening depression - that many think was already on its way anyway.
• led to collapse of many businesses; thousands were bankrupted; suicides were reported.
• people who had lost so much could no longer consume or invest; workforces were laid off; there was even less money within the economy for spending; led to further slowing of economy.
• collapse of credit with loans called in and new ones refused; led to credit squeeze and fall in demand of business activity.
• destroyed confidence in the us economy.

HOOVERS BELIEFS:

• in 1928 presidential election he had claimed us was closer to triumph of poverty than anyone ever.
• believed people should be responsible for their own welfare and govt should not intervene to solve these which handicapped his attempts to deal with worst effects of depression.
• thought the govts role was to give people the ability to solve their own problems.
• firm believer in 'rugged individualism'.
• his reliance on people helping themselves and each other voluntarily was never going to be enough to deal with the depression.
• his problem was his inability to abandon his fundamental beliefs to help the country.
• he was convinced the economy would right itself.

agriculture:

• 1930 Agricultural Marketing Act: enabled govt to lend money to farmers through special marketing groups which stabilised prices and tried to ensure produce was sold at a profit.
• 1930 Grain Stabilisation Corporation: tried to guarantee fair prices by buying wheat that could be stored until price rose again. Prices continued to plunge though.
• these policies failed as he was paying farmers artificially high prices.
• farming was badly effected by introduction of Hawley-Smoot Tariff Act of 1930 that tried to protect us farmers from competition but just led to foreign retaliation.

industry:

• tried to balance budget by reducing federal spending and opposing relief schemes suggested by congress.
• met with businessmen and implored them not to cut their workforce.
• encouraged state govts to begin public works programmes.
• in 1932, gave $500 mill to help various agencies provide relief.
• 1932 Reconstruction Finance Corporation was most radical measure introduced. lent up to $2bn to rescue banks, insurance companies, railroads and construction companies.
• 1932 Emergency Relief Act gave $300 mill to state govts to help unemployed.
• 1932 Home Loan Bank Act was to stimulate house building and home ownership.
• 12 regional banks set up with a fund of $12mill.

treatment of the bonus marchers - veterans of WWI who had been promised a bonus for serving in the war - made him even more unpopular. he had called an army to deal with them and their families.

ECONOMIC EFFECTS:

• unemployment increased from 3.2% in 1929 to 25.5% in 1933.
• unemployment was unevenly distributed throughout country; was 4-6 times greater among african americans; was higher among working class women.
• growth of us economy went into decline.
• production in the coal industry in 1932 was the lowest since 1904.
• iron and steel production fell by 59%.

depression in the cities:

• factories closed down, people stopped spending, production had to slow down or stop.
• industrial cities saw a rapid rise in unemployment - by 1933 almost 1/3 of workforce was out of the work.
• americans who lost their homes moved to the edges of towns and cities and hoovervilles were built with homes built out of tin, wood and cardboard.
• in 1932, it is estimated that more than 2 mill were homeless.

depression in the countryside:

• bankruptcy among farmers grew as they were unable to sell their produce.
• 1931 drought compounded farmers problems as reduced prices and falling output meant there was no hope of financially breaking even.
• crops were damaged by weather.
• poor farming methods had exhausted the soil and in the drought the soil turned to dust and dust storms became frequent in an area that became known as the 'dust bowl'.
• many families from this area tried to move west.