U.S. History II - America in the Twenties - Quick Guides

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Study GuideU.S. History II–America in the Twenties1. Domestic Economic PolicyDuring the 1920s, the U.S. government followedpro-business policiesthat shaped much of theeconomy. These policies includedtax cuts, reduced federal spending, and high tariffsto protectAmerican industries.1.1Tax Cuts and Spending•Andrew Mellon, Secretary of the Treasury under three Republican presidents, pushed formajortax reductions.oPersonal income taxes,estate taxes, andtaxes on excess profitswere alllowered.•These cuts mainly benefited thewealthy, with the idea that they wouldinvest more moneyand help the economy grow.•Mellon also worked tobalance the budgetand reduce government spending. Between 1919and 1929, thenational debt dropped by nearly $10 billion.1.2Tariffs and Trade•The government aimed to protect American businesses from foreign competition with theFordney-McCumber Tariff (1922).oThis raised tariffs on imported goods and farm products and removed some itemsfrom the free-trade list.•However, high tariffs caused problems:oEuropean countriesstruggled to repay war debts to the U.S.oAmerican farmers, though protected from foreign imports, had topay more formachineryand supplies.

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Study Guide1.3New Industries and InnovationEven thoughregulation was weak, the government encouraged somenew industries, like civilaviation:•In1925, U.S. airmail contracts were offered to private companies to boost the airlinebusiness.•TheAir Commerce Act of 1926providedfederal funds for airport construction, helpingaviation grow as a reliable form of transportation.1.4Struggles in AgricultureFarmers didnot share in the 1920s economic boom.•By1920, prices for grain and other commodities fell sharply because ofoverproduction—thesame problem that had affected farmers in the late 1800s.•To help, theMcNary-Haugen Bill(first introduced in 1924) proposed that the governmentbuy surplus cropslike corn, wheat, and cotton, then store them or sell them internationallyto raise prices.•Congress passed the bill in1927, but PresidentCoolidge vetoed it twice.•A smaller plan, theAgricultural Marketing Act of 1929, also failed to addressoverproduction. Later experience would show thatreducing crop production was the onlyreal solutionto the falling prices.2. Change and Reaction in the 1920sThe 1920s were a decade of big changes in the United States. More than half of all Americans nowlived incities, and cars became affordable, making travel easier than ever. People danced theCharleston, listened tojazz, and flappers challenged old-fashioned fashion and social rules. At thesame time, the decade also sawconservative reactions: immigration restrictions, a revival of theKuKlux Klan, and debates over teachingevolutionin schools.2.1The Red Scare and ImmigrationAfterWorld War I, Americans feared radicalism and revolution. Labor strikes in 1919, bombings, andCommunist revolts in Russia and Hungary triggered theRed Scare. UnderAttorney General A.

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Study GuideMitchell Palmer, thousands of suspected radicals were arrested, and many immigrants weredeported.•Sacco and Vanzetti: Two Italian-born anarchists were accused of robbery and murder in1920. Many believed they were convicted more for theirethnic background and politicalbeliefsthan for actual evidence. They were executed in 1927.The U.S. also changed itsimmigration laws:•Quota Act of 1921: Limited annual immigration to 350,000, with 3% of each nationality basedon the 1910 census.•National Origins Act of 1924: Reduced total immigration to 150,000 annually and favorednorthern and western Europeans. For example, Italy could send fewer than 4,000 immigrantsper year, while Germany and Great Britain had much higher quotas.2.2The Ku Klux KlanTheKu Klux Klan (KKK), originally formed after the Civil War, was revived in 1915. Its members,mostlywhite, native-born Protestants, opposed groups they considered un-American: foreigners,Catholics, Jews, and African Americans.•The Klan was strongest in theMidwest and Southwest, and cities likeChicagoandAtlanta.•At its height, it had3–8 million membersand influenced state politics inIndiana, Oklahoma,Oregon, and Texas.•The Klan declined after 1925 due to scandals and lower immigration rates.2.3ProhibitionThe18th Amendment(1920) and theVolstead Actbanned alcohol. Alcohol consumption dropped,but people still drank:•Homemade alcohol was allowed if not sold.•Illegal bars, calledspeakeasies, became popular.•Organized crime grew because of the illegal trade.Prohibition was widely debated, and by 1933, the21st Amendment repealed it.

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