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CHAPTER 12: Politics/Economics of the Roaring 20s. U.S. History. Domestic Issues of 1920s: Demobilization and Prejudice. Demobilization : Switching back from a wartime economy to a peacetime economy What problems do you forsee?. I. Effects of Demobilization.

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CHAPTER 12: Politics/Economics of the Roaring 20s


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    1. CHAPTER 12: Politics/Economics of the Roaring 20s U.S. History

    2. Domestic Issues of 1920s:Demobilization and Prejudice

    3. Demobilization: Switching back from a wartime economy to a peacetime economy What problems do you forsee?

    4. I. Effects of Demobilization • A. Prices up 15% (inflation) but not salaries • B. Unemployment goes up • 1. Soldiers returning • 2. women and black workers?

    5. II. Nativism & the Red Scare • A. Fear of foreigners (N) and Communists (RS) • B. Sacco-Vanzetti Case • 1. Italian immigrants/anarchists • 2. accused double-murder (no proof) • 3. Convicted, death sentence • 4. Guilty of murder or being foreign?

    6. C. Red Scare: Fear Communism taking over US • 1. When Russia bailed in WWI, it helped • Germany • 2. Russians called for Commie Revol. worldwide • 3. Commie party starts in US, supported by labor • D. The Scare begins • 1. Commies send out dozens of mail • bombs to politicians • and biz leaders • 2. Sends public into panic

    7. E. Palmer Raids • 1. Root out radicals/commies • 2. General Intelligence Division (later FBI) • 3. Deported 600 immigrant suspects • 4. Civil Liberties violations • 5. More than 4k arrested J. Edgar Hoover

    8. WRAP • Create a sensory figure for the United States during the time of the Red Scare. • Sensory figure: Draw a person. Then details around him about what he/she feels, sees, hears, smells and tastes

    9. Foreign Relations andEconomics of 1920s

    10. I. The Economic Situation • Unemployment high/inflation high • Debt is high (war costs) • Not getting paid by countries that owe us • Economy stagnant = recession

    11. II. Adjusting Domestic Economic Policy • A. The Mellon Program • 1. Unified Federal Budget • 2. Track Spending • 3. Goals: • 4. Cut budget in half • 5. Supply – side economics

    12. III. Trade Control • A. New Economic Power – USA • B. Isolationism Politically • 1. Not in League of Nations • 2. Promote Peace

    13. C. Ford-McCumber Tariff 1. raised tariff to 60% 2. Made hard for GB and France to pay back the $10 billion they owed us from early WWI 3. GB/France look to Germany to pay reparations so they can pay us. 4. What happens when Germany can’t pay?

    14. D. The Dawes Plan • 1. Goal: stabilize Europe, keep allies from • attacking Germany • 2. Our BANKS loan Germany money, which they give to Allies. • 3. Allies them pay our gov’t $ they owe us

    15. IV. Preventing Future War • D. Washington Conference (1921) • 1. 8 major nations • 2. 5-Power Naval Limitation • Treaty • a. 10-yr warship moratorium • b. Brit/France/US/Italy/Jap • 3. Failures: Japan smaller navy • & no limit on land forces • E. Abolishing War • 1. Kellogg-Briand Pact (1928)

    16. Changing Face of Industry

    17. Essential Knowledge Technology increased industrial production. Labor union membership decreased due to factory owners either threatening or rewarding their workers.

    18. I. Industrial Productivity • A. 1922-28: by 70% • 1. Factors • a. Electric motors • b. Assembly lines • c. Other war nations

    19. II. Ford’s Revolution • A. Assembly line • 1. 14 hrs to 93 mins • 2. Every 10 seconds • 3. Napoleon & Jesus • 4. Other industries born

    20. III. Fighting Unions • A. American Plan • 1. Threaten people to not join • 2. Black listing • 3. Yellow-dog contracts • 4. Unions down 1.5 million

    21. B. Welfare Capitalism • 1. Goal: make unions unnecessary by “bribing” workers • 2. Offering “benefits”: • 3. stock options/pensions • 4. A happy worker …

    22. Essential Question • Describe how the American Plan went about hurting labor unions. Do the same for Welfare capitalism. • Give the overall tactic each used, then at least two specific things each approach did.