Racial Tensions and Economic Decline

Reform Movements & Racial Tensions

The late 1800s and early 1900s were a time of great changes for the United States. 

Many people, like those who supported the Progressive Movement, lobbied for social reforms. 

Racial tensions, however, were also prevalent during this time period.

Woman's Christian Temperance Union

The Woman's Christian Temperance Union was founded in 1874 by women who were concerned that the consumption of alcohol was having negative effects on American society. 

The women who joined this group pledged not to drink alcohol at all and publicly proclaimed their opposition to alcohol. 

Leaders like Carrie Nation protested saloons and destroyed bar windows. 

In 1919, the 18th Amendment, also known as the Volstead Act, was passed by Congress, banning the sale and consumption of alcohol. This began the Prohibition Era. 

W.E.B. DuBois

W.E.B DuBois was an African American leader whose work led to the founding of the National Association for the Advancement of Colored People (NAACP) in 1909. 

He wanted to help talented, young black students by sending them to top universities. 

He thought that with a great education, these students would become leaders of the civil rights movement.

National Association for the Advancement of Colored People (NAACP)

The NAACP was founded in 1909, coinciding with the 100th birthday of Abraham Lincoln. 

In its early years, the NAACP focused on using the courts to overturn Jim Crow laws legalizing discrimination by race. 

In 1913, the NAACP also organized opposition to Woodrow Wilson's introduction of racial segregation into federal government policy, offices, and hiring.

Marcus Garvey

Marcus Garvey was an African American who founded the Universal Negro Improvement Association in 1914. 

His organization was designed to foster worldwide unity among all blacks and establish the greatness of the African heritage. 

Garvey encouraged a "Back to Africa" movement, believing that blacks could not secure rights in countries where they were a minority. 

He was the most influential African American leader of the 1920s.

Red Summer (1919)

Tulsa Race RiotOn May 31, 1921, a mob of whites

gathered to lynch an African American man named Dick Rowland who had been accused of assaulting a white woman the day before. 

Violence soon broke out and spread, with the mob killing many African Americans and burning buildings in the African American community surrounding Greenwood Avenue. 

The riot was one of the worst examples of racial violence in history. 

Some estimates have stated that as many as 300 African Americans were killed.

21st Amendment

The purpose of the 21st Amendment was to repeal the 18th Amendment, which mandated nationwide Prohibition. 

Prohibition banned the sale, manufacture, and transportation of alcohol and began in 1919. 

The period that followed was marked with increasing organized crime as people set up ways to sell alcohol illegally. 

Considered to be a huge failure, Prohibition is blamed by historians as being directly responsible for increasing crime. 

The 21st Amendment ended this time period in 1933.

Destabilization of the Economy

The 1920s had seemed like a time of prosperity, but factors were building up that would later lead to the Great Depression of the 1930s. 

The Great Depression was a severe economic downturn that began in the United States. 

The suffering of the Great Depression was particularly pronounced because the years of 1920s had been a time of carefree growth. 

The Stock Market Crash of 1929 was the first signal that tough times were on the horizon.

Laissez-faire

The laissez-faire policy of presidents Warren G. Harding, Calvin C. Coolidge, and Herbert Hoover allowed businesses to grow without government interference. 

The automobile industry in particular grew explosively in the 1920s. 

However, even though many businesses were successful, not everyone prospered during the 1920s. 

Many African Americans, immigrants, and farmers lived in poverty despite the fact that the overall economy was doing quite well.

Return to Normalcy

President Warren Harding placed emphasis on what he called the "return to normalcy" during the 1920 presidential election. 

This drew support from many people who wanted the United States to return to the policies that had defined the country before World War I.

These supporters favored free enterprise, lower income taxes, high import tariffs, and an isolationist policy regarding international affairs. 

Harding was able to get many votes from people who blamed Woodrow Wilson for the U.S. entry into World War I.

Labor Unions

Labor unions shrank in size and because they could not recruit members. 

The government usually stopped unions from accomplishing their goals because it did not want the unions to hurt businesses.

Buying on Margin

Investors bought stock on a margin, meaning they bought the stock for less than it was worth and promised to pay the rest when the stock price went up. 

Stock prices stopped going up, causing investors to sell all their stock.

Speculators bought stocks hoping to sell them for high profits in the future. This action drove up the stock prices.

Farmers

During World War I, farmers began to produce crops to add to the war effort. 

Following the war, farms continued producing the same amount, even though the demand decreased sharply with the end of fighting. 

This over production drove the price of crops down, and many farmers lost a great deal of money.

Over-manufacturing

Immediately following World War I, the United States experienced an economic recession. This was in part caused by the transition from wartime to peacetime. 

The U.S. had manufactured war supplies and also exported crops to Europe during the war. 

Though these supplies were no longer needed, the U.S. continued to produce at wartime levels. 

The market became flooded with goods and prices went down. This caused people to lose money.

Credit Purchasing

Another problem following the war concerned the veterans who were returning home. Many were unable to find jobs. 

The recession lasted for several years, but the economy rebounded and the U.S. was prosperous for most of the 1920s.

During the 1920s, people used credit to buy high priced items that they could not otherwise afford. 

When the depression hit, people often could not afford to pay off these purchases.

Black Tuesday

On October 29, 1929, the stock market crashed. 

This day is known as "Black Tuesday."

This event was one of many that led to the Great Depression of the 1930s.

Great Depression

The Great Depression became a worldwide economic depression that lasted until the early years of World War II. 

It was the longest period of continuous high unemployment rates and low economic activity in the 1900s. 

During this period many factories, stores, and banks closed. 

Due to poor weather conditions, many farms had poor crop yields for several years. 

As a result, millions of people had no work and little money to support themselves. 

A large percent of citizens had to depend on the government or charity in order to survive.

Hoovervilles

Hoovervilles were groups of shacks made from materials usually found in the trash. People could not afford homes when they could not find work. 

These shantytowns were named after President Hoover. 

Many people were angry that he did not help them when they needed him.

Hoover did not give direct aid to help the needy people. 

Instead, he gave good loans to businesses and banks. He thought that helping businesses would help create jobs.

Dust Bowl

A severe drought in the Midwest and Great Plains region put many farmers out of work. Farms were foreclosed, and the farmers left the "Dust Bowl" area to find new work in California.

Bonus Army

A group called the Bonus Army marched on Washington, D.C., to demand payment of veteran’s bonuses. 

They were scheduled to get the bonuses in 1945, but they needed the money sooner to survive the Great Depression.

Smoot-Hawley Tariff

The Smoot-Hawley Tariff of 1930 increased taxes on imported goods. 

The idea behind the tariff was to stimulate the economy by encouraging consumers to buy goods produced within the United States. 

The tariff backfired, however, because other countries decided to retaliate by placing tariffs on American goods. 

As a result, trade around the world slowed to a virtual standstill.