Chapter 20 Normalcy and Shortsightedness Culture Wars From Roar to Ruin

Normalcy Postwar problems Industrial slowdown Unemployment Farm income Red Scare

Isolationism General theme of American foreign policy in the 1920s

World Problems Maintain world peace Washington Naval Conference Battleship ratio Flaws

World Problems Kellogg-Briand Pact No means of enforcement Latin America

World Problems Stabilize the world economy Economic resources of Europe were devastated

World Problems Germany owed reparations to Allies Allies owed debts to the United States

World Problems Fordney-McCumber Tariff made it difficult for European nations to trade with the U.S.

World Problems U.S. lends money to Germany Circular flow of money Dawes Plan

Presidents Warren G. Harding Won decisively Return to “normalcy” Infamous scandals

Presidents Teapot Dome scandal Harding a weak president Allowed free market to adjust

Presidents Calvin Coolidge “The business of America is business” Popular president

Presidents Herbert Hoover Had been Secretary of Commerce Defeated Al Smith in 1928

Presidents Stock market crash Hoover believed in government intervention in the free market

Culture Wars Darwinism Marxism Albert Einstein Theory of Relativity Sigmund Freud

Culture Wars Literature and art Prohibition Ratified by 1919 Volstead Act Repealed in 1933

Roaring 20s Disregard for moral standards Weakened the family Popularity of the frivolous, sensational

Heroes Movies Organized sports Charles Lindbergh

Prejudice “New Immigration” Sacco-Vanzetti case Blacks migrate to the North

Prejudice Marcus Garvey Harlem Renaissance Ku Klux Klan Would claim to be on side of righteousness

The Faith Rise of fundamentalism The Fundamentals Fundamentalist- Modernist Controversy

The Faith Anti-evolution crusade Laws passed banning teaching of evolution Scopes trial

The Faith Fundamentalism flourished in 1920s Bible colleges and seminaries Radio programs

Prosperity Optimism Automobiles Various types Installment plans Social influence

Prosperity Radio KDKA New material possessions Electricity increasingly available

Prosperity Electric appliances Telephones

Prosperity Spending spree Advertising Mass consumption Speculation Land Stocks

Prosperity Bull market Buying “on the margin”

Bust Stock market begins to sag in October 1929 Panic selling Black Tuesday Stock market crash

Depression Four separate depressions Causes Cumulative consequences following WWI

Depression Causes Government’s pursuit of reckless monetary policies Abandons easy money policy in mid-1929

Depression Causes Smoot-Hawley Tariff of 1932 Retaliation by other countries