1920 S The Highs and the Lows

R OARING 20 S now more Americans are living in urban areas (cities) than in rural areas greater prosperity (money to spend) than ever before new consumerism… appliances, cars, advertising

N EW C ULTURE E MERGES radio, magazines, movies, and newspapers paved the way for a new “pop” or popular culture Americans now had shared culture: all listen to same sporting events, soap operas, news reports, jazz music movies provided an “ escape ” from everyday problems during the Depression

A N EW C ULTURE E MERGES, CON ’ T Harlem Renaissance emerges --Langston Hughes (poet) and Louis Armstrong (Jazz) -- jazz music brought North during “ Great Migration ” & became symbol of modern, urban culture

P ROHIBITION 18 th Amendment prohibits the manufacturing, sale, and drinking of alcohol Intended to prevent crime, child/spouse abuse, accidents at work, etc. but did NOT stop people from drinking (even the President served alcohol!)

P ROHIBITION people went to speakeasies (hidden bars & nightclubs) where bootlegged ( smuggled ) alcohol was sold led to increase of organized crime – gangsters competed for control of trade smuggling illegal alcohol

W OMEN OF THE 1920 S flapper – any young woman who embraced the new fashions and urban attitudes of the day wore knee -length dresses showing skin (!), drank & smoked in public, had short hair

S CIENCE V. R ELIGION fundamentalists taught that all the stories and details in the Bible should be accepted as literally true they also believed that Darwin’s Theory of Evolution was not true

S CIENCE V. RELIGION Charles Darwin claimed that plants and animals have developed over millions of years and humans evolved from apes …upset religious people

S CIENCE V. RELIGION Scopes Trial: March Tennessee declares teaching evolution is illegal -John T. Scopes, supported by ACLU (American Civil Liberties Union), taught evolution to his biology class, was arrested, & put on trial

S CIENCE V. RELIGION Main issue is the role of science v. religion in public education Scopes found guilty, but later ruling is overturned Most famous trial of the 1920s

F EAR OF IMMIGRANTS huge increase in immigration after WWI…predominantly Catholics & Jews native -born Americans feared job competition, rebellion caused by foreigners

F EAR OF IMMIGRANTS Congress passed 2 quota acts (laws) in 1920s that severely limited immigration in 1920s KKK grew in 1920s: hostile (mean) towards blacks, Catholics, Jews, foreigners…anyone they think is “ un-American ”

C AUSES OF STOCK MARKET CRASH Business investments made with money borrowed from bankers and brokers…called speculation - expecting investment value to increase so you can pay back loan AND make a profit **Too much credit given to companies and consumers...buy now and pay later

S PECULATION OR B UYING ON M ARGIN EXAMPLE: To buy $1000 worth of stock…. pay $100 + borrow $900 = $1000 of stock Good outcome: sell stock for $ $100 (investment) - $900 (amount borrowed) = $500 (profit) Bad outcome: sell stock for $500 - $100 (investment) - $900 (amount you borrowed) = $ 0 profit…still owe broker $500!!

C AUSES OF STOCK MARKET CRASH Bank deposits (people’s money ) were invested in Stock Market – bank trying to make profit on your money Late 1920s, business failures from overproduction led to bankruptcies which causes a chain reaction of job loss, failure to pay bills/broker loans

C ONSEQUENCES OF STOCK MARKET CRASH Banks ran out of money because everyone wanted to withdraw their money…many lost their savings People stopped investing in the stock market therefore the economy does not grow

C ONSEQUENCES OF STOCK MARKET CRASH Leads to Great Depression in the U.S. and worldwide