Boom and Bust
2
The Great Depression
The ''Roaring Twenties''
The 1920s were an era of growth and increased wealth for the United States. Many Americans began buying consumer products, such as Model TFords and appliances.
Advertising became very important to American life. During this time, many black people moved out of the South and into large cities such as New York City, Chicago, St. Louis and Los Angeles. They brought with them jazz music, which is why the 1920s are called the "Jazz Age". The 1920s were also the Prohibition Era after the Eighteenth Amendment passed. During the 1920s, drinking alcohol was illegal, but many Americans drank it anyway. This led to much rum-running and violent crime.
Racism was strong in the 1920s. The Ku Klux Klan was powerful once again, and attacked black people, Catholics, Jews and immigrants.
People blamed the war and problems in business on immigrants and labor leaders, whom they said were Bolsheviks (Russian communists). Many people also thought that the United States had lost touch with religion. They handled that by changing religion, and some of them by attacking science.[137]
Model-T's were invented by Henry Ford and changed American transportation
After World War I, the United States had an isolationist foreign policy. That meant it did not want to enter into another global war. It passed laws and treaties that supposedly would end war forever, and refused to sell weapons to its former allies.
In 1921, Warren G. Harding became President. He believed that the best way to make the economy good was for the government to be friendly to big business by cutting taxes and regulating less. While the economy was doing very well under these policies, America had the largest difference between how much money the rich had and how much money the poor had. Harding's presidency had several problems. The biggest one was Teapot Dome over oil drilling in the Navy Oil Reserve. Harding died in 1923, and Calvin Coolidge became President. Coolidge believed that the government should keep out of business, just like Harding, and continued many of Harding's policies. Coolidge chose not to seek the presidency in 1928 and Herbert Hoover became president.
In 1929, a Great Depression hit the United States. The stock market crashed (lost much of its value). Many banks ran out of money and closed. By 1932, over a quarter of the nation had no jobs, and much of the nation was poor or unemployed. Many people were driven off farms, not only because of the Depression, but also because of a storm known as the "Dust Bowl" and because farmers had not been doing well during the 1920s.
President Hoover tried to do something about the Depression, but it did not work. In 1932, he was defeated and Franklin D. Roosevelt became President. He created the New Deal. It was a series of government programs which would give relief (to the people who were hurt by the bad economy), recovery (to make the economy better), and reform (to make sure a depression never happens again).
The New Deal had many programs such as Social Security, the National Recovery Administration (regulated wages), Works Progress Administration (built thousands of roads, schools, government buildings and works of art), the Civilian Conservation Corps (gave young people jobs to help the environment), and Tennessee Valley Authority (built dams and electric lines in the South). These programs put millions of Americans to work, though often at low pay. Many of these programs were started early in Roosevelt's term in a time called the "Hundred Days" or in 1935 in a time called the "Second New Deal". Programs like Social Security grew out of populist movements by people such as Huey Long that were called "Share Our Wealth" and "Ham and Eggs". The New Deal also led to the rise of worker's unions such as the Congress of Industrial Organizations.
The New Deal is often called the period that "saved capitalism", and stopped America from becoming Communist or Fascist state. Although the New Deal improved the economy, it did not end the Great Depression. The Great Depression was ended by World War II.