Chapter 23 Affluence and Anxiety The American People, 6th ed.

I. Postwar Problems

The Red Scare As a result of the Russian Revolution, Americans imagined Communists as the worst possible threat to their way of life The ideals of Socialism and Communism were tied, often erroneously, to the American labor movement Strikes increased and the government responded with a series of raids by a young J. Edgar Hoover to round up suspected subversives and radicals

The Ku Klux Klan Organized in Georgia by William J. Simmons Original Klan accepted almost anyone, 1919’s Klan was thoroughly anti-foreign, anti-Semitic, and anti-Catholic Opposed evolution, endorsed religion, immigration restrictions, short skirts and “demon rum” Especially motivated to keep black Americans “in their place”

II. A Prospering Economy

The Rising Standard of Living Americans of the post-war years had more leisure time and a shorter work week Educational opportunities expanded for the “right” demographic Corporate mergers began to increase again, with an emphasis on professional management and employee care

The Automobile Culture The manufacture of the automobile underwent enormous growth in the postwar years, stimulating the rubber, steel, and petroleum industries The growing affordability of the auto forced governments to pave more streets with federal assistance The auto contributed to the creation of city suburbs and rampant pollution

A Communications Revolution During the 1920s, the number of homes with telephones increased from 9 to 13 million Radio and motion pictures began to solidify a shared identity of Americans through entertainment, news, and sports

Hopes Raised, Promises Deferred

Religious Fundamentalism Many of the religious faithful saw a major spiritual crisis in the sweeping changes of the 1920s Fundamentalism survived the era of sophistication, modernization, and change Radio spread the message of the fundamentalist preachers and attracted numerous converts to those ministers who could readily adapt to the new communications technology

Rural America in the 1920s American farmers, as a rule, did not share in the prosperity of the 1920s. A vicious cycle of overproduction to meet demands continually lowered market prices of produce, forcing many farmers into the poorhouse Advancements in agriculture (pesticides and advanced fertilizers) increased yield per acre and put many farmers out of business

The Business of Politics

Global Expansion The 1920s was a decade of dramatic expansion in business, finance, and trade for the United States Territorial expansion was also endorsed by the American government; continued involvement in the affairs of Central and South America inconsistently promoted peace, stability, and trade in the hemisphere

Progressivism Survives The Sheppard-Towner Maternity Act of 1921 allotted 1 million dollars a year to educate expectant mothers on proper self-health issues and child care In 1919, Congress passed the Volstead Act which banned the brewing and selling of most alcoholic beverages; this became the Eighteenth Amendment of Prohibition

Stock Market Crash The prosperity of the decade came to a screeching halt in 1929 with the collapse of the nation’s stock market Many investors had responded to the booming economy by buying stocks on margin (borrowing to invest). An overextension of the market caused a crash with a represented loss of over $26 million on paper