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Boom and Bust: America, 1919-33 
by Alf Wilkinson

The nature of the topic

This topic covers the time America changes from a mainly rural country to an urban one. Urban interests and politics take over from those of ‘small-town’ America. It is a time of rapid change, of mass immigration, of industrial growth, of prosperity (for some) and of increasing tensions in society. It is also the time America emerges as a Superpower, albeit a reluctant one.

Vital first steps

It is essential to have a clear chronological understanding of the period, as well as an understanding of the federal nature of the United States - what role did the Federal Government play, and what role state and local governments? What policies did the Republican party adopt, and how were they different from the Democrats? Which industries grew in the 1920s, and which faced increasing competition? Although this is a domestic topic it is also important to consider how America’s relations with the rest of the world fuelled the Boom, and exacerbated the Slump. Could the Depression have been avoided, and was its export to the rest of the world, apart from the Soviet Union, inevitable?

Fundamental issues

(a) The Boom. How did the American economy benefit from the First World War? Why were the 1920s such a long period of high growth? Which Americans benefited from growth? Which didn’t? Why is Henry Ford so important? How did ordinary Americans manage to pay for the new consumer goods? What part did government policies play in encouraging growth? Was America truly a free market, or heavily protected behind tariffs?

(b) Why was Prohibition introduced? What impact did it have? When was it abolished? Why? Which sectors of society supported Prohibition, and which opposed it?

(c) Why was immigration such an issue in the USA in the 1920s? Why was legislation passed limiting the types and numbers of immigrants? How does this tie in with the ‘Red Scare’ and racism? What was the ‘Scopes Trial’ and what does it tell us about America at this time? Why were there such divisions within American society at this time?

(d) Why did Wall Street crash in 1929? What part did the banks play in events? Who was to blame for the crash? What did Hoover do to try to restore business confidence? How successful was he?

(e) What was it like to be unemployed in America in the early 1930s? Were there any government benefits or ‘dole’ as in Britain? How did the government respond to mass unemployment? Was Hoover to blame for the limited response by government? How effective was ‘self-help’ in dealing with such a major crisis? Had the Depression got worse or better by the end of 1932?

High-grade issues

(a) Why were Blacks, farmers, and many unskilled workers largely excluded from the prosperity of the 1920s? What impact did this eventually have on economic growth? Did tariffs help or hinder growth? What do events like the Florida Land Boom of 1925 tell us about the mentality of the time? Why was demand already faltering in 1928 and 1929? Why, therefore, did share prices continue to rise?

(b) Why did the ‘noble experiment’ go wrong? How did Prohibition increase disrespect for the law, and lead to a rapid growth of corruption and organised crime? Was Prohibition ever enforceable? Why were Americans in favour of government moral regulation yet so opposed to economic regulation? What does this tell us about the clash between the old and the new in 1920s’ America?

(c) After welcoming so many immigrants before the First World War why had attitudes changed in the early 1920s? Why were some immigrants seen as ‘troublemakers’? Why were Sacco and Vanzetti found guilty and executed? In which parts of the country were the Ku Klux Klan most influential? Why was this? How did this lead to many Blacks moving north to the industrial cities?

(d) Was it inevitable that the Wall Street Crash led on to a major depression? Why did the Depression affect the whole country - urban/rural, farming/industry, east/west? Did the response of imposing more tariffs help or hinder?

(e) Could the government have done more to alleviate the Depression? Conventional political wisdom suggested fiscal prudence and lower taxes would solve the problem - did policies such as these restore confidence? What chance did Hoover have in the 1932 Presidential election? Why was Roosevelt able to restore confidence so quickly? What policies did he adopt to try to ‘beat’ the Depression? Did he ‘beat’ the Depression?

Further Reading: There are plenty of books about this crucial period in America’s history. You might like to try the following to begin with: D. and S. Willoughby, America 1919-1945, Heinemann Advanced History; Peter Clement Prosperity, Depression and the New Deal, Hodder Access to History; Derrick Murphy et al United States 1776-1992 (Chapters 5 and 6), Collins Flagship History; M.J. Heale Franklin D Roosevelt (Chapter 2), Lancaster Pamphlets; Patrick Renshaw, The Longman Companion to America in the Era of Two World Wars, 1910-1945, Longman.