The Roaring 20’s Leads to America’s Great Depression From Boom To Bust The Roaring 20’s Leads to America’s Great Depression

Political Culture League of Nations Limits on Immigration Tariffs War Debts

The Roaring 20’s Prohibition: 18th Amendment Flappers Sports Heroes Speakeasies Bootleggers Moonshine Al Capone Flappers Sports Heroes Charles Lindbergh (Lucky Lindy) First to cross the Atlantic non-stop flight New York City to Paris Standard of living Urban life Prohibition- The “Noble Experiment”; legacy of Progressive Movement Eighteenth Amendment- ratified in 1919;enforced by Volstead Act- 1920-1933 prohibited the “manufacture, sale or transportation of intoxicating liquors” try to end corruption, immorality, drunkenness gives rise to organized crime- bootleggers “Scarface” Al Capone- $60 million in 1927 St. Valentine’s Day Massacre- 1929- 7 die gunned down by rival gang members moonshine- private stills speakeasies- illegal clubs Flapper- term comes from a popular drawing of a dancing woman with her boots open and flapping; considered to be youthful woman Charles Lindbergh- prize of $25,000 for non-stop flight- contest Spirit of St. Louis: May 20, 1927- Long Island- 7:52 AM 34 hour flight- Le Bourget Airport near Paris Not allowed to fly back; 3.5 million letters in a month; 5000 poems written;“Lindy” dance is created; voted most admired American

Business in the 1920’s Harding “A Return to Normalcy”

Business of the 1920’s “The chief business of the American people is business…The man who builds a factory builds a temple…a man who works there worships there.”

Court Cases of the 1920’s

An End To Prosperity Buying on credit Stock Market-Speculation Installment Plans Stock Market-Speculation Buying on Margin Bull Market (Buy) Bear Market (Sell) 1920s- boom on Wall Street- bull market purchase of stock as key to instant wealth many bought on margin- pay for part of value remainder placed on credit with broker 1-3 mill. of 120 mill. people owned stock 1929 1/6 of investors bought on margin Black Tuesday- “The Big Crash”- October 29, 1929 selling of stocks begins- bear market 13 million shares sold at reduced values $26 billion lost by mid-November General Electric- selling for 396 in 1929, 34 in ‘32 US Steel- fell from 261 in 1929 to 21 in 1932 symptom of greater underlying weakness in economy effects- “run” on banks- loans to cover losses withdrawal to cover installment buying 5000 close between 1929 and 1932 business- 100,000 close by 1932 25% unemployed by 1932- 1.5 to 12 million

Cause and Effect Over Production Declining Trade Over Borrowing Uneven Wealth Distribution Farmers-Dust Bowl causes- conditions leading to instability overproduction- outpacing consumption decline in trade contributes to the problem declining trade- Smoot-Hawley tariff 1930- United States passes protectionist law European nations responded- worsens crisis overborrowing- prices rose faster than wages use of the installment buying uneven wealth distribution- worker’s wages low corporate money often went to profits 2% of population receives 28% of wealth lower 60% received 24% farmers feel pinch of credit and falling prices