THE AFTERMATH OF WORLD WAR I
Excess always carries its own retributions.
Stranges, Chapter 10
Henretta, Chapter 23
THE THREE PRIMARY PROBLEMS THAT SHAPED AMERICAN
SOCIETY IN THE 1920s
How could the country’s leaders maintain a healthy national economy?
Four subdivisions comprised the economy: industrial, financial, labor, and agriculture.
part did government play?
How should authority be divided between national and local government?
National politics dealt with the economy.
Local politics dealt with the more sensitive social, cultural, ethnic, and moral values.
Culture: What values should govern the individual in society?
A shift from idealism to disillusionment to materialism emerged.
What was the individual’s
place in society remained an undecided issue.
THE MODERN ECONOMY 1920-29
The organization of the economy: four main subdivisions comprised the economy.
The industrial component
consisted of oligopolies as in the communications, electrical, and
automobile industries, and trade associations as in the textile and construction industries.
In the communications industry NBC, established in 1926, and CBS, established in 1927,
controlled radio broadcasting.
In the electrical industry Westinghouse Electric established in
1886; General Electric established in 1887; and Samuel Insull (1859-1938), Edison’s former
secretary who began consolidating companies in 32 states, controlled the electrical industry.
Insull’s empire collapsed in 1932.
He obtained an acquittal on fraud charges in 1934.
Morgan and Cyrus Eaton (1885-1979), a founder of Republic Steel in 1930, were other major
The automobile revolutionized Americans’ way of living and dying.
It led the way for an
industrial upsurge in related industries, such as the steel, petroleum, rubber, glass, and concrete
The Ford Motor Company, established in 1903, was a major player in the automobile industry.
Henry Ford (1863-1941) in Dearborn, Michigan, set up an assembly line in 1909.
production time from 14 hours to 93 minutes and reduced the price of a Model-T from $950 in