World War I

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World War I

• The
• Politics
• Of
• Prosperity
• And the
• Roaring Twenties

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World War I

• Some Damned thing in the Balkans will ignite the
  next European war. Otto von Bismarck, 1888.
• June 28th Sarajevo, Bosnia and Serbian politico-a
  member of the Black hand Gavrilo Princip gunned
  down the presumptive heir to the throne of
  Austria-Hungary and his wife Sophiaafter a month
  of inept diplomacy, the battle lines were drawn
  and the alliances fell into motionBy August 1
  the guns began to roar in Europe.
• 4yrs and 15 million lives later, peace once again
  fell over Europethough tenuous at best.

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Wilsons Reaction

• Immediately declared neutrality thought this
  might be an opportunity for the American System
  of Morality and Christian values remake the world
  order.
• Americas economic ties and heritage
  unfortunately tied it to all sides of the
  combatants
• Insisted on the right of neutrals to trade with
  all sides of the warring powershelp Americas
  sagging economy.

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Wilsons Reaction

• Unrestricted submarine warfare, the sinking of
  the Laconia and the Lusitania made it abundantly
  clear neutrality would be difficult
• 1916 election he ran on the neutrality ticket He
  kept us out of war.
• Zimmerman Telegram and other issues dragged us
  into war.

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Wilsons Reaction

• By 1917, after all the neutral shipping sunk and
  lives lost unrestricted warfare on American
  shipping
• The Zimmerman telegram, no choice but to ask for
  a declaration of war
• Some disagreed, Jeannette Rankin dissented as did
  some others.

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America Goes to War

• No longer just arsenal for Democracywe now
  fought to make democracy safe for the worldto
  end all wars
• Jumped into a war footing and business and the
  economy boomedwomen and African-Americans
  prospered because of the boom.
• One reason for the Great Migrations of
  African-Americans and Latinoslooking for work.

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America Goes to WarVersailles Treaty

• Selective Service Act
• Race issues, The Houston Riotlashing out against
  mistreatmentAfrican-American veterans fought
  back and killed 17 whites discharged, tried and
  many were hanged
• 100 Americanismdistrusted anyone not considered
  loyal to America
• Schenck vs. U.S. upheld the Espionage Actillegal
  to use the mail for anti-war pamphlets.

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Pandemic Flu-Spanish Influenza 1918

• Began with American Soldiers at Fort
  Rileytransported to Europeby the time it ends
  50 million people are deadmore than in the war
• Everyone somewhere is touched by the Pandemic
• Strange it attacks the 15 to 40 yr olds, lungs
  fill up with blood, swell and they drown--terrible

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Politics of Prosperity

• WWI did not make the world safe for Democracydid
  lay the foundation to American global economic
  dominance
• Culture of consumerism, better working
  conditions, better wages, insurance, personal
  investments, consumer credit
• Exploding middle class

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Politics of Prosperity

• What role did technology play in shaping the
  economy of the 1920s? The culture of the 1920s?
• Compare the relationship between big business and
  government during the 1920s to that of the
  Gilded Age.
• How did the automobile affect American society?
  The economy?
• If Ronald Reagan, Herbert Hoover, and Andrew
  Mellon were in a bar, a sign stated, sorry, our
  drinks dont trickle down who would be the first
  to leave?

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Politics of Prosperity

• This New Era was marked by prosperity and
  opportunity
• The transition from War economy to peace economy
  caused economic dislocation for many, loss of
  income for farmers, stricter Race relations and
  the re-emergence of Nativism against foreign
  immigrants
• Still, many reveled in the new culture of
  consumerism.

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Politics of Prosperity

• 1920s elected three republican Presidentseach
  promised to promote normalcy and prosperity.
• Warren G. Hardingplatform coined Return to
  Normalcy. Very conservativebut administration
  ridden with corruption and scandal. Died of a
  stroke in 1923.
• Calvin Coolidge assumed the executive quickly to
  repair the scandal ridden administrationa honest
  man. Elected outright in 1924.

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Politics of Prosperity

• Coolidge was basically okay executive distrusted
  the mediaso he said very littleSilent Cal.
• One term Presidentpreferred to fish and be with
  familyhe did cut taxes, kept tariffs rather
  high(helped industry, hurt farmers). Very
  popular for some oddity of reason.
• Herbert Hoover, very qualified for the office.
  Sec of Commerce, successful relief program for
  Europe after WWIeconomy busted after he began
  his duties.

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Business Boom, 1920s

• Technology and Consumer spending
• As industrial economy matured, more consumer
  goods became available
• Improved productivity helped keep prices down
• How did it accimplish this?
• Economy experienced steady growth and
  expansionthree factors fueled this success
• Machines
• Factories
• The process of standardized Mass production

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Business Boom, 1920s

• These three factors create a self-perpetuating
  cycle
• Standardized mass production led to,
• Better factory machinery,
• Higher production, higher wages,
• Increased consumer product and more demand for
  consumer product.
• Led to more standardized mass production

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Upward Spiral

• There are five main sources of the economic boom
• 1)Effect of WWI on technology.
• 2) Scientific Management Taylorism
• 3) Rapid increase in worker productivity.
• 4)Psychology of consumption
• 5) Relations between Government and Big Business.

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Psychology of Consumption

• Thorstein Veblen suggested Americans wanted to
  get rich with little effortTheory of the Leisure
  Class
• Coined the term Conspicuous consumption it was
  a cultural mindset.
• Radio, Motion Pictures, Electric appliances, and
  the Automobile.

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Automobile

• All of these things created leisure time and
  cultural continuitynone better than the car.
• Two popularity factors
• 1) Costlow price, very affordable Model T 290
• 2) Consumer Credit75 of all automobile
  purchases were on installment plan

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Economic Effects

• 1) promoted growth of other industries
  (petroleum, rubber, steel)
• 2) Helped established the national Highway
  systemcars required better roads than wagon
  trails and ruts road construction big business
• 3) Created a service industry, gas stations,
  garages, roadside restaurants (Diners) and
  Motels added to the desire to plan vactions and
  see America.

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Social Effects

• 1) A more mobile societybroke down rural and
  urban barriers the Sunday Drive now in
  American lexicon. Urban people saw rural
  America, Rural people drove into cities to see
  the sites and visit Amusement parks etc
• 2) Weakened family life stabilitymuch easier for
  the young folks to go out on their ownsomething
  beside the farm, go west or wherever
• 3) Weakened traditional moralityescape Parental
  supervisionBedroom on Wheels.

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Social Effects
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Social and Self Image
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Government and Big Business

• 5) American businessmen regained the Gilded Age
  folk hero statusto be admired and not scorned as
  the reformers had done
• Many began to equate Prosperity with Progress and
  Cultural evolution Calvin Coolidge The
  business of America is business. It would be
  laissez faire at its most grandestnon-governmenta
  l interference
• Coolidge, Wealth is the chief end of man.

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Government Supports Business

• 1) High Tariff. The Fordney-McCumber Act (1922)
  Smoot-Hawley Act (1930)protected domestic
  business and industry.
• 2) Andrew Mellon-Sec of Treasury (1921-1932) got
  congress to repeal excessive profit tax (1099
  capital gains) reduced rates for corporate and
  personal income taxoffered business a list of
  tax loopholes
• 3) Cutbacks in the federal trade Commission
  (FTC) less government oversight into fair trade
  policiesnot enough personnel to handle all the
  complaints

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Government Supports Business

• 4) Herbert HooverSecretary of Commerce and
  President
• Encouraged price fixing and believed government
  was designed to help businesses grow
• Used two major vehicles to disseminate this
  message Chamber of Commerce and National
  Association of Manufactures

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Consumer Critics

• Materialism was destroying the family unit,
  spirituality, and the moral fiber of America.
• People were amoral and superficialLook at Jay
  Gatsby, Babbit and MiddletownThe Man Nobody
  Knows A Biography of Jesus. Bruce Barton. (1925).