 The mass destruction and death of WWI caused people to question Enlightenment ideas of human progress, and to doubt the future.  People questioned traditional beliefs about the world and its people.

 At the same time that many soldiers were losing their lives in battle, a mysterious illness was spreading throughout the world.  Between 1918 and 1919, the influenza epidemic – called the Spanish Flu – hit the world, killing more people than WWI (approximately 20 million).  Events like the flu epidemic made people feel frightened about living in the world.

 During this time of uncertainty, people looked for answers and explanations.  Sigmund Freud – founder of modern psychology – said that the unconscious mind controlled people’s actions and explained confusing events in life.  Albert Einstein – founder of the Theory of Relativity – The idea that motion, space, and time can only be measured relative to some other object or observation.  These theories gave people some explanation of why things were happening in the world.

 New art forms also emerged during the Postwar Era.  Pablo Picasso created a new style called cubism – influenced by African art and used geometric shapes.  Salvador Dali – surrealist – painted objects that seemed to be unrelated.

 The main form of entertainment during the 1920s and 1930s was the motion picture.  Playing and watching sports also became popular in the U.S. and Japan.  Baseball  Golf  Tennis

 As the economy improved after the war, people began to purchase more consumer goods (clothes, food, etc.)  The price of luxury items (like cars) dropped drastically.  “Buying on credit” became popular – buying something and making payments instead of paying for the entire item up front.

 The expanded use of credit caused people to live in the moment instead of worrying about the future.  The “proper” social norms changed.  Women wearing short hair, short dresses/skirts & dancing at Jazz clubs – these women were known as “flappers”.  Young people rebelled against authority.

 Much of the economic well-being of the 1920s was provided by industry.  Meanwhile, farmers were suffering.  Farmers had borrowed money to expand their farms and now couldn’t pay their debts.  Many countries practiced economic protectionism – protecting domestic interest by limiting trade.

 Market speculation, or risky investment in the stock market, was practiced by millions of Americans in the 1920s.  Stock prices soared, and investors made large profits.

 On October 29, 1929 – Black Tuesday – investors on the New York Stock Exchange panicked after hearing troubling economic news.  Investors rushed to sell their stocks, and stock prices dropped rapidly.  This caused people to rush to the banks to withdraw their money.  Banks demanded that borrowers repay their loans immediately, but most borrowers didn’t have the money.  Thousands of banks and individuals were forced to declare bankruptcy.

 The stock market crash marked the beginning of the Great Depression.  Prices and wages fell, business activity slowed, and unemployment skyrocketed.  Even though prices fell, people had no money to buy anything.

 Herbert Hoover was President during the Great Depression.  People blamed him for the depression, despite his efforts to restore the economy.  In 1932, Franklin D. Roosevelt was elected President and immediately created a relief program to address the problems of the Great Depression.  The New Deal

 Under the New Deal, the federal government provided relief to struggling people.  Programs:  Social Security Act – provided unemployment and old- age benefits.  Agriculture Adjustment Act – provided assistance to struggling farmers  Civilian Conservation Corps – sent young men to work camps to do reforestation and conservation work  Did not completely end the Great Depression, but did provide some help.