7-6: Modern Era of the 1920s
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1 7-6: Modern Era of the 1920s The United States continued its transition from a rural, agricultural economy to an urban, industrial economy led by large corporations. Innovations in communications and technology contributed to the growth of mass culture, while significant changes occurred in internal and international migration patterns.
2 Capitalist Logic All people are motivated BY ECONOMIC SELF-INTEREST (Profit) Income can only be obtained by providing a product or service to society You can only benefit if other people want to buy your product Prices determined by what people are willing to pay/what generates the most profit
3 Capitalist Logic Growing the business to make more money strengthens all parties Owners gain more profit New workers hired Government receives more tax revenue More risk occurs when more money is tied up in stocks and bonds
4 Effect of capitalism on the world Pre-industrialization (up to 1820) Avg. wealth (individual) grew by 50% Capitalist Countries ( ) Avg. wealth (Individual) grew by 900% Europe/U.S./Canada/Aus. By 1,900% Non-Capitalist Countries ( ) Avg. wealth (individual) grew by 500%
5 Effect of capitalism on the world Chinese Gross domestic product 1952 Communism in place $68 billion 1978 beginning of econ. Reforms $200 billion (26 years, +294%) 2004 in world trade org. $12 Trillion (26 years, +6,000%) 2014 second only to USA While imperfect, capitalism has lifted more people out of poverty than any other economic system
6 How much capitalism is best? The real question today is not Should we practice capitalism vs. socialism? We should really look at how closely it should be regulated
7 Welfare Capitalism Combination of free-market and social welfare policies In the 1920s, it took the form of benefits from your company, not government Health insurance Retirement plans Break rooms, cafeterias, sports teams Designed to increase loyalty and protect against economic instability
8 Welfare Capitalism Effects on 1920s labor Wage incentives increased production White-collar workers generally benefitted more System undermined by frequent layoffs as the economy expanded and contracted
9 Republican Control Return to Normalcy Election of 1920 Republican victory (Harding) Rejection of progressivism and idealism League of Nations controversy WWI civil liberties abuses 1919 labor strikes
10 Republican Control Business Creed Gilded Age laissez-faire Progressivism regulation 1920s hands on in favor of business Scandals Teapot Dome Veteran s Bureau Bribes from bootleggers
11 Mixed Economic Development Continuing Urbanization Causes of Business Prosperity Increased productivity Over 50% living in cities Industrial efficiency Lower prices Automobile (assembly line) Government Policy Tax cuts for wealthy Cooperation with business Corporate Consolidation
12 Mixed Economic Development Consumer Economy Improved standard of living More mobility Better communications systems Buying spurred by advertising Farm Problems Falling prices Higher expenses Chemical fertilizers Sophisticated machinery
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18 Mixed Economic Development Labor Problems Union membership dropped Violent confrontations United Mine Workers Battle of Blair Mountain Looming Problems Easy credit for big ticket purchases Businesses put more money into stocks
19 A New Culture Entertainment Factors that shaped pop culture Newspapers and magazines Radio and movies Jazz Sports (baseball)
20 A New Culture Gender Roles Women in the Labor Force Declined from WWI to 1930 Wage inequality Revolution in Morals Flappers Decline of Feminism Role of 19 th Amendment Women did not vote as a bloc Decline of progressivism
21 A New Culture Literature of Alienation Lost Generation Criticized middle-class materialism and conformity Harlem Renaissance Black musical, artistic and literary creativity Black Nationalism Marcus Garvey black pride Back to Africa movement
22 Values in Conflict Modernism Cultural debates over gender, science, religion, race, and immigration Religion Fundamentalism Anti-liberal, anti-secular Bible as literal truth Scopes Trial Evolution vs. Creationism
23 Values in Conflict Prohibition Defying the law Bootlegging Speakeasies Difficult to enforce Political Discord and repeal Rise in organized crime 21 st Amendment Sexual Revolution Views on premarital sex questioned Interpretations of Freud
24 Values in Conflict Birth Control Margaret Sanger Planned Parenthood Nativism Quota Laws Emergency Quota Act Limitations on Eastern, Southern Europeans Limitations on Asians National Origins Act
25 Values in Conflict Nativism Case of Sacco and Vanzetti sentenced to death Based on their radicalism, not necessarily the facts of the case Illustrated fear of immigrants
26 The Fiction of Isolationism Foreign Policy Unilateral actions International investment Peace treaties Selected intervention Tried to maintain isolationism
27 The Fiction of Isolationism Disarmament and Peace Washington Naval Conference Limitations on battleships 5-power treaty Kellogg-Briand Pact Elimination of war Outlawed military aggression
28 The Fiction of Isolationism Tariffs Fordney-McCumber (high) Triggered reciprocal tariffs World trade declined War Debt and Reparations Dawes Plan Rescheduled German reparation payments American private loans to Germany
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