The JAZZ Age 1920-1929

Causes of Prosperity Government’s Role Limits Interference with Business Cuts taxes, debt and government spending Imposes higher tariffs to protect young industries

Mass production creates a wide range of consumer goods at low prices 2. Business Innovation and Technology Mass production creates a wide range of consumer goods at low prices Technology such as autos, airplanes, and radio leads to new industries and economic growth. Business pays high wages

People have more disposable income and leisure time 3. New Consumer Society People have more disposable income and leisure time Credit is more readily available Mass advertising begins

A Changing Society Cultural Changes New youth culture with a “new morality” develops Young people and women gain independence Working class enjoys more leisure time New mass media in radio, movies and sports develops

2. Changes for African Americans Harlem Renaissance Begins Literature reveals racial pride and contempt of racism Jazz and Blues are popularized Strong African American voting blocs in North 1st African American from North elected to Congress NAACP battles segregation and discrimination

Gov. opposes new quotas on immigrants 3. Opposition to Change Nativists and K.K.K. target immigrants, Catholics, Jews and African Americans Gov. opposes new quotas on immigrants Fundamentalists push for traditional values Prohibition is implemented.

The Great Depression Begins Chapter 18 The Great Depression Begins

Causes of the Great Depression LONG RANGE CAUSES Uneven distribution of wealth ensures that many don’t have the $ to buy produced goods. The FED keep interest rates too low, encouraging borrowing and businesses to produce more than market demands. Overproduction floods market with goods that can’t be bought causing layoffs and closing of production.

Immediate Causes People and businesses borrow money to invest in the stock market Speculation drives stock prices high and when they collapse many people lose all their money and many banks collapse when loans cannot be repaid. Companies layoff workers so workers can’t buy goods. This causes more layoffs and the cycle begins. Government raises tariffs to protect American companies. Foreign governments do the same and demand for American products falls, further hurting our companies.

Effects of the Great Depression Unemployment rises to record levels. Many lose homes and farms Homeless create “shantytowns” or “Hoovervilles” on edges of cities. Hunger marches, farmer protests and veteran protests wanting their bonuses indicate the growing anger of the population. Republicans rapidly lose support enabling Democrats to gain Congressional Control. The Federal Government starts providing direct relief to citizens in need. Movies, comic books and radio distract people from daily life.

Random, yet Important The stock market, prior to the crash in Oct. 1929, began to slide as investors began increasingly selling their stock. The FED contributed to the weakness of the market by keeping interest rates low. Before the FDIC, depositors lost their money when a bank collapsed. The Securities and Exchange Commission was created to regulate the stock market. Banks crashed due to investing their deposits in the market.

More randomness Farmers lost crops and profit due to the drought known as the dust bowl, which contributed to the Depression; the AAA paid farmers not to grow crops to try to help them recover New Morality of the 1920s promoted individual freedom Scopes was tried in court for teaching evolution. Bonus Army- WWI Vets marched on Washington Margin- investing in the market with borrowed money. Bull Market- long period of rising stock prices

Still Important Ford used an efficient assembly line, separating specific and simple tasks for each person to do. He developed his business model to make a cheap and affordable car, not to mass produce them. Roosevelt thought that government need to intervene in the economy to help it, leading to Democrats gaining power. 3 Rs: Recovery, Relief, Reform Gold standard- every dollar was redeemable in gold before 1933