The Roaring Twenties Part 2 Politics and Prosperity

The Roaring Twenties Part 2 Politics and Prosperity

38 Karl Marx 1818 - 1883 Wrote the Communist Manifesto in 1848

39 Communism • A political and economic ideology – Government ownership of all land property – A classless society where wealth is distributed according to people’s needs – A single political party controlled by the government – The country’s needs are always more important than the individual

40 Bolsheviks • Communists rebels who overthrew the Russian government in Nov. 1917 • Russian word for “majority” • Led by Vladimir Lenin • Their emblem was a red flag • Their army was called the Red Army

Vladimir Lenin –Leader of 1917 Bolshevik Revolution in Russia

Lenin dies in 1924 – Body encased in glass mausoleum

Lenin’s embalmed body

41 The Red Scare • An intense fear of communism and other radical political ideas that spread through the U. S. in the 1920’s • Triggered by Communist take-over of Russia and Hungary and labor strikes in the U. S. • Suspected communists were arrested and charged with sedition • Many were jailed, removed from office, or exiled

42 Sedition Any action or language that incites rebellion against the authority of the government

The Red Scare: Democracy in danger?

43 Anarchists People who oppose any form of political authority

44 Sacco-Vanzetti Trial • April 1920 – Braintree, MA • Guard and paymaster at a shoe factory were robbed and killed • 2 Italian immigrants were arrested • Convicted and sentenced to death • Many believed that it was fear of their radical anarchist political beliefs that led to an unfair verdict • April 1927 - Both were electrocuted after years of appeals

Bartolomeo Vanzetti & Nicola Sacco

The guilty verdict was protested internationally

A mob in Mexico protests the execution

45 • • • Warren G. Harding 29 th President 1921 – 1923 Republican From Ohio Campaign called for a return to “normalcy”

46 “Normalcy” Harding’s suggestion that the U. S. wished to return to a calm, normal way of life after the stressful events of the previous decade, such as Progressivism, World War I, and the Red Scare

47 Harding’s Policies • Isolationism – U. S. would not join the League of Nations • Disarmament – nations should voluntarily give up their weapons • Immigration restrictions • Tariffs raised to protect American business from foreign competition

48 Teapot Dome Scandal • Harding’s Secretary of the Interior, Albert Fall, gave drilling rights on government owned naval oil fields in Wyoming to 2 private oil companies • Received nearly $400, 000 illegally • No evidence that Harding was involved • Fall was fined $100, 000 and sentenced to a year in prison

Teapot Dome, Wyoming

Whom is this cartoonist blaming for the Teapot Dome scandal?

49 Calvin Coolidge • • • 30 th President 1923 - 1929 Republican Massachusetts VP under Harding Takes office when Harding dies in Aug. 1923 continued

49 Calvin Coolidge • A man of few words – “Silent Cal” • “The chief business of the American people is business. ” • Took a laissez-faire approach to business • The government should leave business alone and let it grow

50 Kellogg-Briand Pact • 1927 - Agreement written by U. S. Secretary of State, Kellogg, and French Foreign Minister, Briand • 60 nations pledged not to use threat of war against each other

51 Consumer Economy An economy that depends on a large amount of spending by consumers

52 Consumer Economy Cycle People consume products Larger profits for business Wages for workers increase

53 GNP Increased • Gross National Product • The measure of a country’s productivity • The total value of goods and services produced annually

New Electric Gadgets Available to the American Consumer • Radios • Toasters • Vacuum cleaners • Sewing machines • Refrigerators • Coffee pots • Ovens • Irons

1920’s General Electric Range

Electric refrigerators replaced “iceboxes”

Catalogs sold everything for the home – including the home

And what was the greatest invention of the age?

54 Henry Ford • 1896 – invented the quadricycle • 1899 – started the Detroit Automobile Company – made 22 cars • 1900 – business failed continued

54 Henry Ford • 1901 – There were over 50 companies making cars, but only the wealthy could afford them • Ford wanted to “democratize the automobile” by making them cheaper • 1903 – Started the Ford Motor Company • Mass produced the Model T using assembly line production

55 Assembly Line • A process in which each worker completes a single specific task in the production process • At the end of the line, the product is complete • Ford’s assembly line produced a Model T every 24 seconds

Qu n o i t es How did Henry Ford convince investors to back his plan to produce cheap reliable cars after his first venture had failed?

Answer Ford, at the age of 38, entered a race against the most famous racer in the country, Alexander Winton. Ford’s “Sweepstakes” had 26 horsepower. Winton’s “Bullet” had 70 horsepower.

In a 10 lap race, Ford came from behind in the 7 th lap to beat Winton by a wide margin, averaging 45 mph. What made the difference?

Winton’s car began to misfire badly, but Ford’s car had a spark coil insulated with a porcelain case designed by a dentist. (The forerunner of the spark plug) Ford won $1000 and a punch bowl, and found financial backers for his new car company.

Ford gaining on Winton in Oct. 1901 race in Grosse Point, MI Ford (the man) Ford (the car)

Henry Ford’s “Sweepstakes” 2 cylinders – 539 cubic inches – 26 hp – top speed 72 mph

Ford and the 1921 Model T

Model T – 15 million sold between 1908 and 1927 Model

1923 Ford Grain Truck

How did Americans afford all these new toys?

56 Installment Plans • Manufacturers attracted consumers by allowing payments over time • Items most likely bought on credit: – Cars – Furniture – Vacuum cleaners, radios, refrigerators – Washing machines

57 Speculation • The practice of making high-risk investments in hopes of getting a huge return • The rapid rise of stock prices throughout the 1920’s convinced people that they could “get rich quick”

58 Buying on Margin • Common people with little money would buy stocks by putting 10 – 50 percent down and borrowing the rest owed • If the stocks went down in price, the investor still owed the full amount for them plus the interest on the loan

59 Welfare Capitalism • In order to prevent more labor strikes, employers began to improve conditions by offering – Higher wages – Paid vacations – Health insurance – English classes

60 • • • Herbert Hoover 31 st President 1929 – 1933 Republican New York Continued to keep government out of business