The Roaring Twenties and the Great Depression: A Social and Economic History

Profound Societal Shifts in the Late 19th and Early 20th Centuries

• What significant changes occurred in Europe and the USA during the late 19th and early 20th centuries?
  A: Profound changes occurred in social, political, and daily life, impacting the collective behavior surrounding production relations, work, and leisure. Significant population growth occurred as peasants migrated to cities, causing problems related to housing, education, and employment.
• What issues arose from the migration to cities?
  A: Problems related to housing, education, and labor.
• What role did the middle class play in the late 19th and early 20th centuries?
  A: The emergence of a mass market, driven by the middle class, caused significant changes in society (political, social, and cultural).
• What cultural products had the power to transform society?
  A: Radio, film, and advertising.

Post-World War I: Reconstruction and Economic Boom

• What was the primary task after World War I?
  A: The rebuilding of cities, industries, and large companies.
• What consequences did Germany face for its role in World War I?
  A: Germany had to pay substantial reparations and faced numerous restrictions, including limitations on industries and businesses. They were forced to disarm, which weakened their economic recovery.
• Why did the U.S. prosper after World War I?
  A: The U.S. began to industrialize, profiting from the sale of weapons, and joined the war strategically.
• What were the "Roaring Twenties"?
  A: The "Roaring Twenties" or "Happy Twenties" in the U.S. refer to a period when the middle class gained access to new technologies like cars, washing machines, refrigerators, and electric irons, thanks to the strong U.S. economy.

The 1920s: Production, Consumption, and Inequality

• Why did production increase in the 1920s?
  A: Prices became more accessible, and the introduction of loans and credit cards with long-term payments in the U.S. stimulated production.
• How was consumption incentivized if wages did not rise?
  A: Loans and credit cards with long-term payments were introduced.
• Did the economic boom benefit everyone equally? Explain.
  A: No, Black farm workers were not favored. Many workers were replaced by machines, leading to increased production without a corresponding increase in purchasing power. Racism also played a significant role in the unequal distribution of benefits.
• How did the Black population live in the 1920s?
  A: They lived in very poor, often inhumane conditions and were denied access to good jobs.

Prohibition and the Stock Market Crash of 1929

• What was Prohibition in the U.S., and what were its consequences?
  A: Prohibition was the ban on alcohol. It led to the rise of clandestine establishments for alcohol sales, contributing to the emergence of drug dealers and gangsters.
• Why did the New York Stock Exchange crash?
  A: On October 28, 1929, shareholders panicked as stock prices began to fall. They started selling their shares frantically, leading to an oversupply of stocks.
• What actions did speculators take?
  A: They manipulated stock prices, raising and lowering them for profit.

The Great Depression and the New Deal

• How did industries explain the 1929 crisis?
  A: They attributed it to excess stock that could not be sold, leading to mounting debts.
• What consequences did the stock market crash have for financiers and banks?
  A: It drove many of them out of business.
• What impact did the New York stock market crisis have on the global economy?
  A: It affected almost every country.
• What measures did President Roosevelt implement regarding welfare, labor law, employment, and the financial system?
  A: He introduced the New Deal, a plan aimed at regulating the economy, reducing unemployment, and increasing public spending. It included aid to banks, subsidies for farmers, wage increases, reduced working hours, higher taxes on public works, and a boost to production.