Chapter Twenty-Three The Twenties, 1920—1929

Chapter Focus Questions 1.How did the second Industrial Revolution transform the economy? 2.What were the promise and limits of prosperity in the 1920s? 3.What were the new mass media and the culture of consumption? 4.How did the Republican Party dominate politics in the 1920s? 5.What were the political and cultural oppositions to modern trends?

Part Two: The Movie Audience and Hollywood

Hollywood In the 1920s, the movies were America’s most popular form of the new mass culture. A huge, national audience regularly attended movies in grand, majestic theaters. The production center for this dream world was Hollywood, California. A frontier boomtown, dominated by the movie stars who lived opulent lives, Hollywood symbolized Americans’ dreams of freedom, material success, and the chance to remake one’s very identity.

23.1: Postwar Prosperity and Its Price

A. The Second Industrial Revolution 1.The economy underwent a transformation during the 1920s as a second Industrial Revolution took hold. 2.Technological innovations made it possible to increase industrial output without expanding the labor force. 3.Driven by electricity and automated machinery, industry concentrated on producing consumer goods. 4.A housing boom further drove the economy.

FIGURE 23.1 Stock Market Prices, 1921–32 Common stock prices rose steeply during the 1920s. Although only about 4 million Americans owned stocks during the period, “stock watching” became something of a national sport.

FIGURE 23.2 Consumer Debt, 1920–31 The expansion of consumer borrowing was a key component of the era’s prosperity. These figures do not include mortgages or money borrowed to purchase stocks. They reveal the great increase in “installment buying” for such consumer durable goods as automobiles and household appliances.

B. The Modern Corporation 1.A managerial revolution stressed scientific management and behavioral psychology. Successful corporations worked to: a.integrate production and distribution b.diversify products c.expand industrial research d.gain control of entire industries 2.Increasingly, a class of salaried executives rather than stockholders made corporate policy.

The A&P grocery chain expanded from 400 stores in 1912 to more than 15,000 by the end of the 1920s, making it a familiar sight in communities across America. A&P advertisements, like this one from 1927, emphasized cleanliness, order, and the availability of name-brand goods at discount prices. SOURCE:From Ladies Home Journal.A&P Food Stores LTD.

C. Welfare Capitalism 1.To improve worker morale and reduce the challenge of unions, corporations employed “welfare capitalism.” 2.To undercut unions, businesses promoted an “open shop” in which non-union workers received the same benefits as union workers. 3.Union membership rapidly declined. 4.The AFL showed no interest in organizing workers in the new industries. 5.The courts also adopted a pro-business stance.

D. The Auto Age 1.The car symbolized the rise of the consumer economy. 2.By 1925, the assembly line at Henry Ford’s Highland Park plant completed a car every 10 seconds. 3.Ford paid his workers more than the going rate, reducing turnover while enabling them to be both producers and consumers of his Model T. The car cost $300—three month’s wages. 4.The auto industry spurred production of steel, rubber, glass, and petroleum. 5.Road building triggered commercial development along highways, promoting new businesses and changed social habits.

Finished automobiles roll off the moving assembly line at the Ford Motor Company, Highland Park, Michigan, ca During the 1920s, Henry Ford achieved the status of folk hero, as his name became synonymous with the techniques of mass production. Ford cultivated a public image of himself as the heroic genius of the auto industry, greatly exaggerating his personal achievements. SOURCE:Brown Brothers.

Until 1924, Henry Ford had disdained national advertising for his cars. But as General Motors gained a competitive edge by making yearly changes in style and technology, Ford was forced to pay more attention to advertising. This ad was directed at “Mrs. Consumer,” combining appeals to female independence and motherly duties.

E. Cities and Suburbs 1.The automobile enabled people to move into suburbs. 2.Cities also grew at a fast pace, not only horizontally, but also vertically as new buildings reshaped the skyline.

F. Exceptions: Agriculture, Ailing Industries 1.Despite the boom in business, many workers and farmers suffered. 2.Agricultural profits steadily declined and the gap between farm and non-farm income widened. 3.Coolidge vetoed efforts to aid farmers, suffering from debts incurred during wartime expansion. 4.Other sick industries included: a.coal mining—which faced competition from oil and natural gas b.railroads—which faced competition from cars and trucks c.New England textiles—which faced competition from low- wage southern producers