Transcript United States History

United States History
Chapter 14
Politics and Prosperity
(1920-1929)
Section 1
A Republican Decade
Explain the Red Scare.



Intense fear of communism and other
politically radical ideas during the 1920s
This attitude was the result of Communist
changes in Europe, especially Russia, as well
as incidents of violence by Communists in the
United States
This growing fear in the country resulted in
drastic actions, many of these individuals
targeted were foreigners
What were the Palmer Raids?



As a result of bomb explosions in several
American cities in June 1919, the Justice
Department set out to eliminate this “clear and
present danger” to the country
Raids were conducted and suspects [those who
had hopes of overthrowing the government]
were arrested [Communists, socialists, and
anarchists]
Thousands of suspects were arrested and
charged with anarchy throughout the United
States, many of them foreign born, many of
them innocent [more than 500 would be
deported]
Explain the significance of the
Sacco and Vanzetti trial.



Case: gunmen robbed and killed the guard and
paymaster of a shoe factory, the police would
arrest two Italian immigrants (Sacco &
Vanzetti)
These suspects were arrested mainly because
they were immigrants with radical beliefs [in
addition to the guns found on both men]
The trial has been identified by many as unfair,
the anti-immigrant/radical feeling was evident
with the judge and jury; they accused would
be found guilty and executed just months later
Explain the 1920s American
foreign policy of isolationism.


Policy of avoiding political or economic
alliances with foreign countries
Many Americans wished to avoid any future
political or economic alliances with foreign
nations; Americans wanted to get to the
concept of “normalcy,” continuing the
development and growth of the United States
without favoritism or influence from outside
What was the Dawes Plan (1924)?


The United States did get involved with
the problems in regards to German
reparations after World War I; the
United States feared global economic
problems because of this
The United States worked to reorganize
the payment plan, in addition to loans
from the United States, to fix the
reparation issue in Europe
Explain the purpose of the immigration
legislation passed by Congress during the
1920s.



Americans feared foreigner could never be
loyal to the United States, they only caused
problems in the United States
The United States would pass legislation that
would restrict immigration with quotas on the
number of immigrants that can come to the
United States from certain areas
National Origins Act – established an annual
2% quota based on the 1890 census
[specifically limiting the immigration of peoples
from Italy, Poland, Russia, and other nations of
eastern and southern Europe; would also
eliminate Japanese immigration]
Section 2
A Business Boom
The 1920s saw the development
of a consumer economy. Explain.


An economy that depends on a large
amount of spending by consumers
World War I had led to increased
incomes, which would result in greater
spending, as well as the growth of
business [who would work hard to
promote spending through advertising,
new products, lower costs, and credit]
What was the United States’ biggest
manufacturing industry in the 1920s?


The automobile industry
The business practices of Henry Ford
would in the end make cars more
affordable to the average American;
millions of Americans would buy cars
during the 1920s
How did the automobile industry impact
the growth of the entire American
economy?


Impacted numerous industry’s
throughout the United States: steel,
rubber, glass, leather, gas, etc.
Led to the creation of new businesses:
garages, car dealerships, motels,
campgrounds, gas stations, restaurants,
etc.
Section 3
The Economy of the Late 1920s
Economic Danger Signs of the 1920s
Uneven Prosperity

During the 1920s the rich got richer, but
many Americans did not see the same
gains as the wealthy
Economic Danger Signs of the 1920s
Personal Debt

Many Americans were accustomed to
credit spending, which led to an
increase in personal debt
Economic Danger Signs of the 1920s
Playing the Stock Market


Many Americans saw the wealthy get
rich playing the stock market, the
ordinary American sought to make a
fortune as well
Many Americans began to get involved
in the stock market by buying stocks on
margin [purchasing stocks for a fraction
of the price and borrowing the rest]
Economic Danger Signs of the 1920s
Over-Production


By the late 1920s the country’s
warehouses were overstocked with
more goods than consumers could buy
Overproduction caused some industries
to slow in the late 1920s