Prohibition and Gangsters Essay

Cheap labour force due to continuous immigration pre WWI, including unskilled labour   Onset of WWI and America’s late entry Reaction to WWI & After:   Set up the League of Nations, but did not join and chose to follow an isolationist policy   Entered late into the war so therefore had a plentiful supply of goods, and no physical damage on American soil Availability of natural resources e. g. oil, coal, wood, iron Sold supplies to fighting countries during the war, as well as loans   Economies in Europe were struggling to rebuild, allowing America to take over as the world’s largest producer of products such as fertilisers. Technological advances made: mechanisation, creation of plastic Economic Management:   Limited government intervention ‘laissez-faire’, with low taxes & few regulations encouraged economic growth in businesses   ‘Rugged individualism’, belief that people succeeded with their own hard work   Tariffs introduced to protect the US economy: import duties on goods to the USA, along with a reduction in income tax rates to allow people to spend more on American goods   Introduction of new production methods: the conveyor belt, which sped up production rates and increased profits. New materials introduced such as plastics and glass, helping create buildings such as skyscrapers   Wages increased along with profits, more people could spend more on consumer luxuries   Electrical power made widespread, usage of oil doubled   People were confident and now prepared to buy American goods and invest in the American economy   Prosperity was a right, not a privilege: people encouraged to spend Return to isolationism:   The US economy was increasingly protected by government intervention in the forms of tariffs   Quota system for immigration, closing the ‘Open Doors’ policy. The Boom & Industries that benefited: Motor industry, building works, stock market   Advertising increased massively to fuel consumerism Low inflation, low unemployment, low interest rates meant that people could afford to buy luxuries   Hire purchase introduced to allow average earners to spend on luxuries   Stock market share prices rose steadily during the 1920s, until in 1928 where it suddenly rocketed   Beginning of speculation, people willing to buy shares using loans Motor industry: Car production relied on other industries such as steel, petrol, glass and rubber. Techniques such as the assembly line lowered costs of production, making cars more affordable Increase in purchase of cars led to more roads being built, as well as hotels/restaurants which were now reachable   Construction industry similarly benefited from the introduction of new materials, as well as greater demand for factories, buildings etc.   Transport services as more was invested into infrastructure such as roads, allowing buses to become common, as well as commercial flights Introduction of department stores, where people helped themselves to goods. Suffering industries: Coal, Railway, Textiles (Cotton/wool), Agriculture ‘Old industries’ such as coal mining began to be in competition with oil * Cars began to take over the railway transport system, lessening the need for coal   Advancement in technology meant less workers were needed for mining -> unemployment begins   Mines began to close down Textiles industries began to face competition when tariffs were lowered New materials such as rayon meant that old textiles fell out of favour in terms of cost and efficiency in production Changes in fashion (short dresses etc.) meant less textiles were needed   WWI led to farmers choosing to produce more, and this rate of production continued into the 1920. While they benefited during WWI, consumption began to decrease as Europe began to recover and stopped relying on American produce, but there was already excess production Technologies such as tractors helped to increase production rates   Farmers were therefore forced to sell their goods at a lower cost, and they refused to lower their production rates as they were unsure that other farmers would do the same. Many farmers became the poorest paid workers in the US and many had to borrow money to pay their mortgages, or face eviction and unemployment Society in the 1920s: Women: Position of women pre 1917 included limited unemployment, limited social positions (accompanied by chaperones), no role in politics as well as being expected to adhere to dress standards After 1917 as the US entered WWI, women were employed to work in the heavy industry and for the first time went out by themselves, smoked and drank in public   Vote given in 1920. Consumer luxuries such as vacuums led to more women having leisure time Introduction of the Flappers: women who challenged traditional attitudes, and were mainly middle and upper class Leisure:   Newspapers & magazines fuelled consumption, as more people wanted to read about the latest issues and famous people   Sport also took over, becoming a focus of newspapers, magazines as well as radio shows. Sporting figures such as Babe Ruth also challenged traditional society, where he was seen smoking and drinking in public. Cinema: visiting the cinema became popular as part of family life, especially with the introduction of ‘talkies’, and sex became a popular focus for movies. Cinemas were refurbished and several film studios were founded Radio: First radio station started in 1920 (KDKA), with many more soon to come. Radio enabled people to listen to sporting events, music, advertisements and entertainment.   Jazz: ‘the jazz age’, when jazz became popular, especially with the flappers despite its African American origins Prohibition and Gangsters: Drinking was largely believed to be hindering work efficiency, as well as being the cause of trouble, including in religion, leading to a ban on alcohol   People were driven to the black market to consume alcohol, including speakeasies which relied on corruption by paying off law enforcement officers   Smuggling of alcohol also became common (rum running), and some doctors provided ‘medicinal whiskey’   Some of the illegally brewed alcohol was not checked and this led to poisoned alcohol   This led to the rise in organised crime, or ‘gangsterism’, with one notable figure being Al Capone: Chicago’s speakeasies, bookmakers, nightclubs etc.