Stock market 1918

Stock market 1918

Posted: RubenRFSAaaa Date: 11.06.2017

The history of the United States from through covers the post- World War I era, the Great Depression , and World War II. After World War I, the U. In , the manufacture, sale, import and export of alcohol was prohibited by an amendment to the United States Constitution. Possession of liquor, and drinking it, was never illegal. The overall level of alcohol consumption did go down, however, state and local governments avoided aggressive enforcement.

The federal government was overwhelmed with cases, so that bootlegging and speakeasies flourished in every city, and well-organized criminal gangs exploded in numbers, finances, power, and influence on city politics.

During most of the s, the United States enjoyed a period of sustained prosperity. Agriculture went through a bubble in soaring land prices that collapsed in , and that sector remained depressed. Coal mining was shrinking as oil became the main energy source.

Otherwise most sectors prospered. Prices were stable, and the Gross Domestic Product GDP grew steadily until , when the financial bubble burst. In foreign policy President Wilson helped found the League of Nations but the U. The nation instead took the initiative to disarm the world, most notably at the Washington Conference in — Washington also stabilized the European economy through the Dawes Plan and the Young Plan.

The Immigration Act of was aimed at stabilizing the traditional ethnic balance and strictly limiting the total inflow. The act completely blocked Asian immigrants, providing no means for them to get in. The Wall Street Crash of and the ensuing Great Depression led to government efforts to restart the economy and help its victims.

The recovery, however, was very slow. The nadir of the Great Depression was , and recovery was rapid until the recession of proved a setback. There were no major new industries in the s that were big enough to drive growth the way autos, electricity and construction had been so powerful in the s.

GDP surpassed levels in By , isolationist sentiment in America had ebbed, and after the stunning fall of France in to Nazi Germany the United States began rearming itself and sent a large stream of money and military supplies to Britain, China and the Soviet Union. After the sudden Japanese Attack on Pearl Harbor , the United States entered the war against Imperial Japan , Fascist Italy , and Nazi Germany , known as the " Axis Powers ".

Italy surrendered in , and Germany and Japan in , after massive devastation and loss of life, while the US emerged far richer and with few casualties. The United States was in turmoil throughout The huge number of returning veterans could not find work, something the Wilson administration had given little thought to.

After the war, fear of subversion resumed in the context of the Red Scare, massive strikes in major industries steel, meatpacking and violent race riots. Radicals bombed Wall Street, and workers went on strike in Seattle in February. During , a series of more than 20 riotous and violent black-white race-related incidents occurred. These included the Chicago , Omaha , and Elaine Race Riots.

A phenomenon known as the Red Scare took place — With the rise of violent Communist revolutions in Europe, leftist radicals were emboldened by the Bolshevik Revolution in Russia and were eager to respond to Lenin's call for world revolution. On May 1, , a parade in Cleveland, Ohio , protesting the imprisonment of the Socialist Party leader, Eugene Debs , erupted into the violent May Day Riots.

A series of bombings in and assassination attempts further inflamed the situation. Mitchell Palmer conducted the Palmer Raids , a series of raids and arrests of non-citizen socialists , anarchists , radical unionists, and immigrants.

They were charged with planning to overthrow the government. By , over 10, arrests were made, and the aliens caught up in these raids were deported back to Europe, most notably the anarchist Emma Goldman , who years before had attempted to assassinate industrialist Henry Clay Frick.

A popular Tin Pan Alley song of asked, concerning the United States troops returning from World War I, " How Ya Gonna Keep 'em Down on the Farm After They've Seen Paree? In fact, many did not remain "down on the farm"; there was a great migration of youth from farms to nearby towns and smaller cities.

Few went to the cities with over , people. However, agriculture became increasingly mechanized with widespread use of the tractor , other heavy equipment, and superior techniques disseminated through County Agents , who were employed by state agricultural colleges and funded by the Federal government.

In , Woodrow Wilson campaigned for the U. During a grueling cross-country tour to promote the League, Wilson suffered a series of strokes. He never recovered physically and lost his leadership skills and was unable to negotiate or compromise. The Senate rejected entry into the League. Defeat in the Great War left Germany in a state of turmoil and heavily in debt for war reparations , payments to the victorious Allies. The Allies in turn owed large sums to the US Treasury for war loans.

The US effectively orchestrated payment of reparations; under the Dawes Plan , American banks loaned money to Germany to pay the reparations to countries like Britain and France, which in turn paid off their own war debts to the US. In the s, European and American economies reached new levels of industrial production and prosperity.

After a long period of agitation , U. Women participated in the Presidential and Congressional elections. Politicians responded to the new electorate by emphasizing issues of special interest to women, especially prohibition, child health, public schools, and world peace.

The suffrage organization NAWSA became the League of Women Voters. Alice Paul's National Woman's Party began lobbying for full equality and the Equal Rights Amendment , which would pass Congress during the second wave of the women's movement in , but was not ratified and never took effect.

The main surge of women voting came in , when the big-city machines realized they needed the support of women to elect Al Smith , while rural dry counties mobilized women to support Prohibition and vote for Republican Herbert Hoover. Catholic women were reluctant to vote in the early s, but they registered in very large numbers for the election—the first in which Catholicism was a major issue.

Overall, the women's rights movement was dormant in the s, since Susan B. Anthony and the other prominent activists had died, and apart from Alice Paul few younger women came along to replace them. Harding , who promised a "return to normalcy" after the years of war, ethnic hatreds, race riots and exhausting reforms. Harding used new advertising techniques to lead the GOP to a massive landslide, carrying the major cities as many Irish Catholics and Germans, feeling betrayed, deserted the Democrats.

Except for a recession in —21, the United States enjoyed a period of prosperity. Good times were widespread for all sectors except agriculture and coal mining. New industries especially electric power, movies, automobiles, gasoline, tourist travel, highway construction, and housing flourished. Business interests had captured control of the regulatory agencies established before and used progressive rhetoric, emphasizing technological efficiency and prosperity as the keys to social improvement.

William Allen White , a leading progressive spokesman, supported GOP candidate Herbert Hoover in as one who could "spiritualize" business prosperity and make it serve progressive ends.

Energy was a key to the economy, especially electricity and oil. As electrification reached all the cities and towns, consumers demanded new products such as light bulbs, refrigerators and toasters. Labor unions grew very rapidly during the war, emerging with a large membership, full treasuries, and a temporary government guarantee of the right of collective bargaining. Inflation was high during the war, but wages went up even faster. However, unions were weak in heavy industry, such as automobiles and steel.

Their main strength was in construction, printing, railroads, and other crafts where the AFL had a strong system in place. Total union membership had soared from 2. An aggressive spirit appeared in , as demonstrated by the general strike in Seattle and the police strike in Boston. The larger unions made a dramatic move for expansion in by calling major strikes in clothing, meatpacking, steel, coal, and railroads. The corporations fought back, and the strikes failed. The unions held on to their gains among machinists, textile workers, and seamen, and in such industries as food and clothing, but overall membership fell back to 3.

Real earnings after taking inflation, unemployment, and short hours into account of all employees doubled over — Setting as , the index went to in , in , 81 in the low point of the depression , in , and in The bubble of the late s was reflected by the extension of credit to a dangerous degree, including in the stock market , which rose to record high levels.

Government size had been at low levels, causing major freedom of the economy and more prosperity. It became apparent in retrospect after the stock market crash of that credit levels had become dangerously inflated. The stock market crash was also caused by the increased government spending of Herbert Hoover and excessive market speculation. The United States became more anti-immigration in outlook during this period. Thus, the massive influx of Europeans that had come to America during the first two decades of the century slowed to a trickle.

Asians and citizens of India were prohibited from immigrating altogether. The " Jazz Age " symbolized the popularity of new musics and dance forms, which attracted younger people in all the large cities as the older generation worried about the threat of looser sexual standards as suggested by the uninhibited " flapper. It was an age of celebrities and heroes, with movie stars, boxers, home run hitters, tennis aces, and football standouts grabbing widespread attention.

Black culture, especially in music and literature, flourished in many cities such as New Orleans, Memphis, and Chicago but nowhere more than in New York City, site of the Harlem Renaissance. The Cotton Club nightclub and the Apollo Theater became famous venues for artists and writers.

Radio was a new industry that grew explosively from home-made crystal sets , picking up faraway stations to stations in every large city by the mid-decade. The broadcast fare was mostly music, especially by big bands. In , the manufacture, sale, import and export of alcohol was prohibited by the Eighteenth Amendment to the United States Constitution in an attempt to alleviate high rates of alcoholism and, especially, political corruption led by saloon-based politicians.

It was enforced at the federal level by the Volstead Act. Most states let the federals do the enforcing. Drinking or owning liquor was not illegal, only the manufacture or sale.

National Prohibition ended in , although it continued for a while in some states. Prohibition is considered by most but not all historians to have been a failure because organized crime was strengthened. Ku Klux Klan KKK is the name of three entirely different organizations s, s, post that used the same nomenclature and costumes but had no direct connection. The KKK of the s was a purification movement that rallied against crime, especially violation of prohibition, and decried the growing "influence" of "big-city" Catholics and Jews.

Its membership was often exaggerated but possibly reached as many as 4 million men, but no prominent national figure claimed membership; no daily newspaper endorsed it, and indeed most actively opposed the Klan. Membership was verily evenly spread across the nation's white Protestants, North and South , urban and rural. Historians in recent years have explored the Klan in depth. The KKK of the s and the current KKK were indeed violent. However, historians discount lurid tales of a murderous group in the s.

Some crimes were probably committed in Deep South states but were quite uncommon elsewhere. The local Klans seem to have been poorly organized and were exploited as money-making devices by organizers more than anything else.

Nonetheless, the KKK had become prominent enough that it staged a huge rally in Washington DC in Soon afterward, the national headlines reported rape and murder by the KKK leader in Indiana , and the group quickly lost its mystique and nearly all its members. The Scopes Trial of was a Tennessee court case that tested a state law which forbade the teaching of "any theory that denies the story of the Divine Creation of man as taught in the Bible, and to teach instead that man has descended from a lower order of animals.

In a spectacular trial that drew national attention thanks to the roles of three-time Democratic presidential candidate William Jennings Bryan for the prosecution and famed lawyer Clarence Darrow for the defense, John T. Scopes was convicted of teaching evolution, but the verdict was overturned on a technicality.

stock market 1918

The Fundamentalists were widely ridiculed, with writers like H. Mencken poking merciless ridicule at them; their efforts to pass state laws proved a failure.

In retrospect, the s are sometimes seen as the last gasp of unregulated " robber-baron " capitalism. In addition to Prohibition, the government obtained new powers and duties such as funding and overseeing the new U. Highway system and the regulation of radio frequencies. The result was a rapid spread of standardized roads and broadcasts that were welcomed by most Americans. The president, exhausted and ill from the news of the scandals, died of a heart attack in August after a cruise to Alaska.

His vice-president, Calvin Coolidge, succeeded him. Coolidge could not have been a more different personality than his predecessor. Dour, puritanical, and spotlessly honest, his White House stood in sharp contrast to the drinking, gambling, and womanizing that went on under Harding.

In , he was easily elected in his own right with the slogan "Keep Cool With Coolidge". Overall, the Harding and Coolidge administrations marked a return to the hands-off style of 19th-century presidents in contrast to the activism of Roosevelt and Wilson. Coolidge, who spent the entire summer on vacation during his years in office, famously said "The business of the American people is business. When Coolidge declined to run again in the election , the Republican Party nominated engineer and Secretary of Commerce Herbert Hoover , who was elected by a wide margin over Al Smith , the first Catholic nominee.

Hoover was a technocrat who had low regard for politicians. Instead he was a believer in the efficacy of individualism and business enterprise, with a little coordination by the government, to cure all problems. He envisioned a future of unbounded plenty and the imminent end of poverty in America.

A year after his election, the stock market crashed, and the nation's economy slipped downward into the Great Depression. After the crash, Hoover attempted to put in place many efforts to restore the economy, especially the fast-sinking agricultural sector.

Hoover believed in stimulus spending and encouraged state and local governments, as well as the federal government, to spend heavily on public buildings, roads, bridges—and, most famously, the Hoover Dam on the Colorado River. But with tax revenues falling fast, the states and localities plunged into their own fiscal crises.

Republicans, following their traditional mass drums, along with pressure from the farm bloc, passed the Smoot—Hawley Tariff Act , which raised tariffs. Canada and other nations retaliated by raising their tariffs on American goods and moving their trade in other directions.

The entire world economy, led by the United States, had fallen into a downward spiral that got worse and worse, and in —32 began plunging downward even faster. Hoover had Congress set up a new relief agency, the Reconstruction Finance Corporation , in , but it proved too little too late. Historians and economists still have not agreed on the causes of the Great Depression , but there is general agreement that it began in the United States in late and was either started or worsened by " Black Thursday ," the stock market crash of Thursday, October 24, Sectors of the US economy had been showing some signs of distress for months before October Business inventories of all types were three times as large as they had been a year before an indication that the public was not buying products as rapidly as in the past , and other signposts of economic health—-freight carloads, industrial production, and wholesale prices—-were slipping downward.

The events in the United States triggered a world-wide depression , which led to deflation and a great increase in unemployment. Local relief was overwhelmed.

Unable to support their families, many unemployed men deserted often going to " Hoovervilles " so the meager relief supplies their families received would stretch further.

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For many, their next meal was found at a soup kitchen , if at all. Adding to the misery of the times, drought arrived in the Great Plains.

Decades of bad farming practices caused the topsoil to erode, and combined with the weather conditions the s was the overall warmest decade of the 20th century in North America caused an ecological disaster. The dry soil was lifted by wind and blown into huge dust storms that blanketed entire towns, a phenomenon that continued for several years.

Those who had lost their homes and livelihoods in the Dust Bowl were lured westward by advertisements for work put out by agribusiness in western states, such as California. The migrants came to be called Okies , Arkies , and other derogatory names as they flooded the labor supply of the agricultural fields, driving down wages, pitting desperate workers against each other.

They came into competition with Mexican laborers, who were deported en masse back to their home country. In the South, the fragile economy collapsed further. To escape, rural workers and sharecroppers migrated north by train, both black and white. Many family farms that had been mortgaged during the s to provide money to "get through until better times" were foreclosed when farmers were unable to make payments.

In the United States, upon accepting Democratic nomination for president in , Franklin D. Roosevelt promised "a new deal for the American people," a phrase that has endured as a label for his administration and its many domestic achievements. The Republicans, blamed for the Depression, or at least for lack of an adequate response to it, were easily defeated by Roosevelt in Roosevelt entered office with no single ideology or plan for dealing with the depression.

The "new deal" was often contradictory, pragmatic, and experimental. What some considered incoherence of the New Deal's ideology, however, was the presence of several competing ones, based on programs and ideas not without precedents in the American political tradition.

Many of them failed, but there were enough successes to establish it as the most important episode of the 20th century in the creation of the modern American state. The desperate economic situation, combined with the substantial Democratic victories in the Congressional elections, gave Roosevelt unusual influence over Congress in the "First Hundred Days" of his administration.

He used his leverage to win rapid passage of a series of measures to create welfare programs and regulate the banking system, stock market, industry and agriculture. On March 6, two days after taking office, Roosevelt issued a proclamation closing all American banks for four days until Congress could meet in a special session. Ordinarily, such an action would cause widespread panic.

But the action created a general sense of relief. First, many states had already closed down the banks before March 6. Second, Roosevelt astutely and euphemistically described it as a "bank holiday.

Three days later, President Roosevelt sent to Congress the Emergency Banking Act , a generally conservative bill, drafted in large part by holdovers from the Hoover administration, designed primarily to protect large banks from being dragged down by the failing smaller ones. The bill provided for United States Treasury Department inspection of all banks before they would be allowed to reopen, for federal assistance to tottering large institutions, and for a thorough reorganization of those in greatest difficulty.

A confused and frightened Congress passed the bill within four hours of its introduction. The immediate banking crisis was over. The Glass—Steagall Act established various provisions designed to prevent another Great Depression from happening again.

These included separating investment from savings and loan banks and forbidding the purchase of stock with no money down. Roosevelt also removed the currency of the United States from the gold standard, which was widely blamed for limiting the money supply and causing deflation, although the silver standard remained until Private ownership of gold bullion and certificates was banned and would remain so until On the morning after passage of the Emergency Banking Act, Roosevelt sent to Congress the Economy Act , which was designed to convince the public, and moreover the business community, that the federal government was in the hands of no radical.

The bill revealed clearly what Roosevelt had always maintained: And like the banking bill, it passed through Congress almost instantly—despite heated protests by some congressional progressives. The celebrated First Hundred Days of the new administration also produced a federal program to protect American farmers from the uncertainties of the market through subsidies and production controls, the Agricultural Adjustment Act AAA , which Congress passed in May The AAA reflected the desires of leaders of various farm organizations and Roosevelt's Secretary of Agriculture , Henry A.

Relative farm incomes had been falling for decades. The AAA included reworkings of many long-touted programs for agrarian relief, which had been demanded for decades. The most important provision of the AAA was the provision for crop reductions—the "domestic allotment" system, which was intended to raise prices for farm commodities by preventing surpluses from flooding the market and depressing prices further.

The most controversial component of the system was the destruction in summer of growing crops and newborn livestock that exceeded the allotments. They had to be destroyed to get the plan working. However, gross farm incomes increased by half in the first three years of the New Deal and the relative position of farmers improved significantly for the first time in twenty years.

Urban food prices went up slightly, because the cost of the grains was only a small fraction of what the consumer paid.

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Conditions improved for the great majority of commercial farmers by However, rural America contained many isolated farmers scratching out a subsistence income. The new deal set up programs such as the Resettlement Administration and the Farm Security Administration to help them, but was very reluctant to help them buy farms. Roosevelt also created an alphabet soup of new federal regulatory agencies such as the U. Securities and Exchange Commission SEC to oversee the stock market and a reform of the banking system that included the Federal Deposit Insurance Corporation FDIC to establish a system of insurance for deposits.

The most successful initiatives in alleviating the miseries of the Great Depression were a series of relief measures to aid some of the 15 million unemployed Americans, among them the Civilian Conservation Corps , the Civil Works Administration , and the Federal Emergency Relief Administration. The early New Deal also began the Tennessee Valley Authority , an unprecedented experiment in flood control, public power, and regional planning.

The Second New Deal —36 was the second stage of the New Deal programs. Roosevelt announced his main goals in January The most important programs included Social Security , the National Labor Relations Act "Wagner Act" , the Banking Act, rural electrification , and breaking up utility holding companies. Programs that were later ended by the Supreme Court or the Conservative coalition included the Works Progress Administration WPA , the National Youth Administration NYA , the Resettlement Administration , and programs for retail price control, farm rescues , coal stabilization, and taxes on the rich and the Undistributed profits tax.

Liberals in Congress passed the Bonus Bill for World War veterans over FDR's veto. The Second New Deal proved especially controversial as it attempted to redistribute wealth, income and power in favor of the poor, the old, farmers and labor unions.

Liberals strongly supported the new direction, and formed the New Deal coalition of union members, big city machines, the white South, and ethnic minorities to support it.

Conservatives, typified by the American Liberty League , were strongly opposed. Roosevelt's first term saw a massive amount of labor upheaval. In alone, there was the West Coast waterfront strike that brought all of San Francisco into a four-day general strike, the Minneapolis Teamsters Strike of that brought the Teamsters and other unions out for a strike causing the governor to declare martial law, the textile workers strike that brought hundreds of thousands of textile workers on the East Coast out on strike, as well as other strikes.

In , eight unions within the AFL organized the Congress of Industrial Organizations CIO to promote industrial unionism. The CIO unions were expelled by the AFL in , and in they formed a rival federation to the AFL.

The CIO had much success in organizing, with the Steel Workers Organizing Committee getting a contract with U. Steel in , and winning the Flint Sit-Down Strike and getting General Motors to recognize the United Auto Workers UAW as the collective bargainer for GM workers. Having succeeded with GM, the UAW next turned its attention to Chrysler, which quickly came to terms. The last of the Big Three would prove to be a harder nut to crack, as Henry Ford remained absolutely opposed to unions.

His security forces beat several UAW organizers outside the company's River Rouge plant in May Despite pressure on all fronts, Ford would not budge until a wildcat strike in convinced him to give in and unionize. The economy eventually recovered from the low point of the winter of —33, with sustained improvement until , when the Recession of brought back levels of unemployment.

The New Deal and Roosevelt's leadership were under assault during Roosevelt's second term, which suffered new economic setbacks in the Recession of A sharp economic downturn began in the fall of and continued through most of Conservatives said it was caused by the labor unions' assault on industry through massive strikes and the way the New Deal discourages further investment.

The administration reacted by launching a rhetorical campaign against business monopoly power, which was cast as the villain. Despite that, the New Deal gradually wound down and by the president had turned his attention towards foreign policy. But the administration's other response to the downturn had more tangible results. Roosevelt explained his program in a fireside chat in which he finally acknowledged that it was up to the government to "create an economic upturn" by making "additions to the purchasing power of the nation.

It was not until the administration expanded Federal spending to support World War II , that the nation's economy fully recovered.

Between and the peak of wartime production , the nation's output almost doubled. The war economy was not so much a triumph of free enterprise as the result of government bankrolling business. While unemployment remained high throughout the New Deal years, consumption, investment, and net exports—the pillars of economic growth—remained low.

It was World War II, not the New Deal, which finally ended the crisis. Nor did the New Deal substantially alter the distribution of power within American society and economy; and it had only a small impact on the distribution of wealth among the population.

Although the New Deal did not end the depression, it increased the regulatory functions of the federal government in the stock market, the banking system, and others. It also produced a new political coalition that sustained the Democratic Party as the majority party in national politics for more than a generation after its own end. Laying the foundations for the postwar era, Roosevelt and the New Deal helped enhance the power of the federal government as a whole.

Roosevelt also established the presidency as the preeminent center of authority within the federal government. By creating a large array of protections for various groups of citizens—workers, farmers, and others—who suffered from the crisis, enabling them to challenge the powers of the corporations, the Roosevelt administration generated a set of political ideas—known to later generations as New Deal liberalism—that remained a source of inspiration for decades and that helped shape the next experiment in liberal reform, the Great Society of the s.

On the other hand, the Roosevelt administration and its liberalism became the source of a vigorous conservative reaction. Led in Congress by Senator Robert A. Taft and the Conservative coalition , they blocked almost all New Deal proposals after , and shut down the WPA, CCC and many other programs by Eventually in the s and s, a bipartisan coalition ended most New Deal regulations and programs. The most important remaining ones in the 21st century are Social Security and the Securities and Exchange Commission.

Isolationist sentiment with regard to foreign wars in America had ebbed, but the United States at first declined to enter the war, limiting itself to giving supplies and weapons via Lend Lease to Britain, China , and the Soviet Union. American feeling changed drastically with the sudden Japanese attack on Pearl Harbor. Italy surrendered in , followed by Germany and Japan in The economy doubled and tripled in size as a massive industrial mobilization was accompanied by artificial wage and price controls.

After a series of defeats inflicted by Japan, the U. Navy turned the tide at Midway June , then inexorably moved toward total destruction of the Japanese military. After small-scale invasions of North Africa and Italy , the main American effort was a strategic bombing campaign that destroyed the German Luftwaffe, followed by a massive invasion of France in American forces met up with Soviet forces marching into Germany from the east in May Overall, the entire nation was turned into a vast war machine, affecting society more than any other conflict fought by the United States, except perhaps the Civil War.

After winning re-election to unprecedented third and fourth terms, Roosevelt's health was rapidly deteriorating; he died on April 12, Truman had not been kept informed of major foreign policy and military decisions, but he continued most of Roosevelt's wartime policies.

Truman moved sharply to the right in replacing FDR's liberal cabinet. With its merchant fleet sunk by American submarines, Japan ran short of aviation gasoline and fuel oil.

Navy in June captured islands within bombing range of Tokyo.

Strategic bombing using the B destroyed all the major cities in , as the U. With conventional and atomic bombs falling , an Allied invasion imminent, and an unexpected Soviet attack sweeping through Manchuria, the Emperor of Japan surrendered.

Japan was occupied by the Americans under Douglas MacArthur ; MacArthur's five year rule transformed Japan's government, society and economy along American lines into a peaceful democracy and a close ally of the U.

The main contributions of the U. Much of the focus in Washington was maximizing the economic output of the nation. This was achieved by tens of millions of workers moving from low-productivity occupations to high efficiency jobs, improvements in productivity through better technology and management, and the move into the active labor force of students, retired people, housewives, and the unemployed, and an increase in hours worked.

It was exhausting; leisure activities declined sharply. People tolerated the extra work because of patriotism, the pay, and the confidence it was only "for the duration" and life would return to normal as soon as the war was won. Most durable goods became unavailable, and meat, clothing, and gasoline was tightly rationed. In industrial areas housing was in short supply as people doubled up and lived in cramped quarters.

Prices and wages were controlled, and Americans saved a high portion of their incomes, which led to renewed growth after the war instead of a return to depression. Federal tax policy was highly contentious during the war, with President Franklin D.

Roosevelt battling a conservative Congress. Everyone agreed on the need for high taxes to pay for the war. Many controls were put on the economy. The most important were price controls, imposed on most products and monitored by the Office of Price Administration. Wages were also controlled.

In a rationing system was begun to guarantee minimum amounts of necessities to everyone especially poor people and prevent inflation. Tires were the first item to be rationed in January because supplies of natural rubber were interrupted. Gasoline rationing proved an even better way to allocate scarce rubber. By one needed government issued ration coupons to purchase typewriters, sugar, gasoline, bicycles, footwear, fuel oil, silk, nylon, coffee, stoves, shoes, meat, cheese, butter, margarine, canned foods, dried fruits, jam, and many other items.

Some items—like new automobiles and appliances—were no longer made. The rationing system did not apply to used goods like clothes or cars. The ration system was complex and confusing, but high levels of patriotism made it acceptable as people helped each other through the maze of rules. To get a classification and a book of rationing stamps, one had to appear before a local rationing board.

Each person in a household received a ration book, including babies and children. When purchasing gasoline, a driver had to present a gas card along with a ration book and cash. Ration stamps were valid only for a set period to forestall hoarding. All forms of automobile racing were banned, including Indianapolis. Sightseeing driving was banned, too. People had more money than they could spend, so they saved it, especially in government savings bonds.

Bond rallies in many cities featured Hollywood film stars, who drew in the crowds needed to make the program a success. Compliance was very high, with entire factories of workers earning a special "Minuteman" flag to fly over their plant if all workers belonged to the "Ten Percent Club".

There were seven major War Loan drives, all of which exceeded their goals. An added advantage was that citizens who were putting their money into War Bonds were not putting it into the home front wartime economy.

The unemployment problem ended in the United States with the beginning of World War II, when stepped up wartime production created millions of new jobs and the draft pulled young men out.

Women also joined the workforce to replace men who had joined the forces, though in fewer numbers. Roosevelt stated that the efforts of civilians at home to support the war through personal sacrifice was as critical to winning the war as the efforts of the soldiers themselves. The war effort brought about significant changes in the role of women in society as a whole.

At the end of the war, many of the munitions factories closed. Other women were replaced by returning veterans. However most women who wanted to continue working did so. Labor shortages were felt in agriculture, even though most farmers were given an occupational exemption and few were drafted. Large numbers volunteered or moved to cities for factory jobs. At the same time many agricultural commodities were in greater demand by the military and for the civilian populations of Allies.

In some areas schools were temporarily closed at harvest time to enable students to work. About , German prisoners of war were used as farm laborers both during and immediately after the war. With the war's ever increasing need for able bodied men consuming America's labor force in the early s, industry turned to teen-aged boys and girls to fill in as replacements.

By , there were almost three million American teenage boys and girls working in American fields and factories. Lured by high wartime wages, they took jobs and forgot about their education. Between and , the number of teenage workers in America increased by 1.

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The war mobilization changed the relationship of the Congress of Industrial Organizations CIO with both employers and the national government. Nearly all the unions that belonged to the CIO were fully supportive of both the war effort and of the Roosevelt administration.

However the United Mine Workers, who had taken an isolationist stand in the years leading up to the war and had opposed Roosevelt's reelection in , left the CIO in The major unions supported a wartime no-strike pledge that aimed to eliminate not only major strikes for new contracts, but also the innumerable small strikes called by shop stewards and local union leadership to protest particular grievances.

In return for labor's no-strike pledge, the government offered arbitration to determine the wages and other terms of new contracts. Those procedures produced modest wage increases during the first few years of the war but not enough to keep up with inflation, particularly when combined with the slowness of the arbitration machinery.

Even though the complaints from union members about the no-strike pledge became louder and more bitter, the CIO did not abandon it. The Mine Workers, by contrast, who did not belong to either the AFL or the CIO for much of the war, threatened numerous strikes including a successful twelve-day strike in The strikes and threats made mine leader John L.

Lewis a much hated man and led to legislation hostile to unions. All the major unions grew stronger during the war. The government put pressure on employers to recognize unions to avoid the sort of turbulent struggles over union recognition of the s, while unions were generally able to obtain maintenance of membership clauses, a form of union security , through arbitration and negotiation. Workers also won benefits, such as vacation pay, that had been available only to a few in the past while wage gaps between higher skilled and less skilled workers narrowed.

Most union leaders saw women as temporary wartime replacements for the men in the armed forces. It was important that the wages of these women be kept high so that the veterans would get high wages. The cities were relatively peaceful; much-feared large-scale race riots did not happen, but there were small-scale confrontations, notably the race riot in Detroit [61] and the anti-Mexican Zoot Suit Riots in Los Angeles in About , persons of Japanese ancestry on the West Coast and their children were interned by the U.

They were sent to inland camps. Canada followed a similar policy. The , or more Japanese Americans in Hawaii were not interned. The American camps were closed in In foreign policy the United Nations was established on October 24, , to serve as a world body to help prevent future world wars. By a vote of 65 to 7, the United States Senate , on December 4, , approved the treaty that set full American participation in the UN, with a veto in the all-important Security Council.

This marked a turn away from the traditional interest in strategic local concerns of the U. Fears of a postwar depression did not materialize, thanks in part to the large stock of savings that paid for the pent-up demands for housing, cars, new clothes—and babies. The Baby Boom began as the veterans returned, many moving to the rapidly expanding suburbs.

Optimism was the hallmark of the new age—an age of grand expectations. From Wikipedia, the free encyclopedia. Part of a series on the. Prehistory Pre-colonial Colonial period — — — — — — — — — — present. African American Asian American Chinese American Filipino American Japanese American Jewish American Mexican American Polish American.

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Roosevelt and the New Deal, The failure of apologia. Champion of Freedom A Modern History The first hundred days Roosevelt and the New Deal: Archived from the original on Volume 1 p. Koistinen, Arsenal of World War II: The Great Plains During World War II. U of Nebraska Press. A City At War: Milwaukee Labor During World War II. Magazine Advertising and the World War II Home Front. The United States, — Oxford History of the United States. An Informal History of the s bestselling, well-written history full text online free Bagby, Wesley M.

America's international relations since World War I Oxford University Press, Black, Conrad. Women at War with America: Private Lives in a Patriotic Era , wives, workers and WACs in World War II Dooley, Roger Burke. From Scarface to Scarlett: American films in the s Field, Alexander J. Sidney Hillman and the rise of American labor For the Survival of Democracy: Franklin Roosevelt and the World Crisis of the s excerpt and text search Hoehling, A.

The Story of World War II Over Here Kennedy, David M. The American People in Depression and War, — Oxford History of the United States , pp; Pulitzer Prize Kyvig, David E. Daily Life in the United States, — How Americans Lived During the Roaring Twenties and the Great Depression Leuchtenburg, William E. The Perils of Prosperity, — pp. Roosevelt and the New Deal - online Malin, James C. The United States after the World War University of Nebraska Press.

Modern American Religion, Volume 2: The Noise of Conflict, The s and the Making of Modern America A Rabble of Dead Money: The Great Crash and the Global Depression: The Harding Era — Harding and his Administration. University of Minnesota Press, , the standard academic study Olszowka, John, et al. America in the Thirties Syracuse University Press, pp excerpt Plotke, David. Building a Democratic Political Order: Reshaping American Liberalism in the s and s Cambridge UP, Shindler, Colin.

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Roosevelt's ebullient public personality, conveyed through his declaration that "the only thing we have to fear is fear itself" and his " fireside chats " on the radio did a great deal to help restore the nation's confidence. Fireside Chat 1 On the Banking Crisis Roosevelt's first Fireside Chat on the Banking Crisis March 12, Problems playing this file? Wikibooks has a book on the topic of:

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