Chapter 20 The

Roaring 20s
I. Return to
Normalcy
I. Normalcy

Postwar problems
1. Industrial slowdown
2. Unemployment
3. Farm income
4. Red Scare
 A) Isolationism

General theme of American foreign

policy in the 1920s
 B) World
Problems

1. Maintain world peace

Washington Naval Conference
Battleship ratio
Latin America
 B) World
Problems

2. Stabilize the world economy

Economic resources of Europe
were devastated
 B) World
Problems

Germany owed reparations to Allies

Allies owed debts to the United States
 B) World
Problems

Tariffs made it difficult for European

nations to trade with the U.S.
 B) World
Problems

U.S. lends money to Germany

Circular flow of money
Dawes Plan
C) Presidents
 C) Presidents

1) Warren G. Harding
Won decisively
Return to normalcy
Infamous scandals
 C) Presidents

Teapot Dome scandal

Harding a weak president
Allowed free market to adjust
 C) Presidents

2) Calvin Coolidge
The business of
America is business
Popular president
 C) Presidents

3) Herbert Hoover
Had been Secretary of
Commerce
Defeated Al Smith in 1928
 C) Presidents
Hoover believed in government
intervention in the free market
Stock market crash
II. Culture Wars
A) New Ideas
Darwinism
Marxism
Albert Einstein
- Theory of
Relativity
Sigmund Freud
 A) New Ideas

1) Literature and art deco

 A) New Ideas

2. Prohibition
Ratified by 1919
Volstead Act
Repealed in 1933
 B) Roaring 20s

Disregard for moral standards

Weakened the family
Popularity of the frivolous, sensational
 C) Heroes

1. Movies
 C) Heroes

2. Organized sports
C) Heroes

3. Charles Lindbergh
D) Prejudice

New Immigration
Sacco-Vanzetti case
Blacks migrate to the North
D) Prejudice

Marcus Garvey
Harlem Renaissance
 D) Prejudice

Ku Klux Klan
- Would claim to be on side of righteousness
 E) The Faith

Rise of fundamentalism
- The Fundamentals
Fundamentalist-Modernist Controversy
E) The Faith

Anti-evolution crusade
Laws passed banning teaching of evolution
Scopes trial
E) The Faith

Fundamentalism flourished in 1920s

Bible colleges and seminaries
Radio programs
III. Prosperity

Optimism
Automobiles
Various types
Installment plans
Social influence
III. Prosperity

Optimism
Automobiles
Various types
Installment plans
Social influence
III. Prosperity

Radio
KDKA
New material possessions
Electricity increasingly available
III. Prosperity

Electric appliances
Telephones
III. Prosperity

Spending spree
1. Advertising
2. Mass consumption
Speculation
1. Land
2. Stocks
III. Prosperity

Bull market
Buying on the margin
 A) Bust!

Stock market begins to sag in October 1929

Panic selling
Black Tuesday
Stock market crash
 IV. Depression

Four separate depressions

Causes
1. Cumulative consequences following WWI
IV. Depression

Causes
2. Governments pursuit of reckless
monetary policies
- Abandons easy money policy in mid-1929
 IV. Depression

Causes
3. Smoot-Hawley Tariff of 1932
- Retaliation by other countries
The End!