📜History of American Business Unit 9 – WWI and the Roaring 20s Economy

Key Events and Timeline

• 1914: World War I began with the assassination of Archduke Franz Ferdinand of Austria-Hungary
• 1917: The United States entered WWI after Germany resumed unrestricted submarine warfare
  • The Selective Service Act was passed, requiring all men aged 21-30 to register for the draft
• 1918: The Allied powers launched a series of successful offensives, leading to the collapse of the Central Powers
  • The armistice was signed on November 11, 1918, ending the fighting in WWI
• 1919: The Treaty of Versailles was signed, officially ending the war and establishing the League of Nations
• 1920: The 18th Amendment went into effect, prohibiting the manufacture, sale, and transportation of alcohol in the United States
• 1921-1922: The Washington Naval Conference led to a series of treaties limiting the naval arms race
• 1928: Herbert Hoover was elected president, promising to continue the economic prosperity of the 1920s

Causes and Context

• Nationalism and imperialism fueled tensions between European powers as they competed for colonies and influence
• The alliance system divided Europe into two opposing camps (Triple Alliance and Triple Entente), increasing the risk of a large-scale conflict
• The assassination of Archduke Franz Ferdinand by a Serbian nationalist served as the immediate trigger for the war
• The United States initially remained neutral, but economic ties and German actions (Zimmermann Telegram and unrestricted submarine warfare) eventually led to American involvement
• The Russian Revolution in 1917 led to Russia's withdrawal from the war and the rise of communism as a global political force

Economic Impact of WWI

• The war led to a massive mobilization of resources and labor, with governments taking control of key industries
  • The U.S. government established agencies like the War Industries Board to coordinate production and allocation of resources
• The demand for war materials and supplies led to a boom in industries such as steel, chemicals, and textiles
• The cost of the war was financed through a combination of taxes, bonds, and borrowing, leading to a significant increase in government debt
• The disruption of international trade and the destruction of infrastructure in Europe had long-lasting effects on the global economy
• The war accelerated the shift of economic power from Europe to the United States, as American industries expanded to meet wartime demands

Technological Advancements

• The development of aircraft and tanks revolutionized warfare and had significant implications for future conflicts
• Advances in chemical weapons (mustard gas) and artillery led to new tactics and increased casualties
• Improvements in communication technology, such as radio and telephone, enhanced coordination and command on the battlefield
• Medical innovations, including the use of X-rays and the development of blood transfusions, saved countless lives
  • The influenza pandemic of 1918 led to further advances in public health and disease control
• Mass production techniques, such as the assembly line, were refined during the war and later applied to consumer goods

Post-War Economic Boom

• The 1920s saw a period of rapid economic growth and prosperity in the United States, known as the "Roaring Twenties"
• The rise of mass production and consumerism led to the expansion of industries such as automobiles (Ford Model T), household appliances, and entertainment
• The widespread adoption of electricity and the growth of the advertising industry fueled consumer spending
• The stock market experienced a significant boom, with many Americans investing in stocks and real estate
• The agricultural sector struggled due to overproduction and falling prices, leading to a growing disparity between urban and rural areas

Social and Cultural Changes

• The 1920s saw a rise in social liberalism and a challenge to traditional values, known as the "Jazz Age"
  • Women gained the right to vote with the passage of the 19th Amendment in 1920
• The Harlem Renaissance celebrated African American culture and creativity in literature, music (jazz), and art
• The prohibition of alcohol led to the rise of speakeasies, organized crime, and a general disregard for the law
• The popularity of radio and motion pictures (silent films) created a new mass culture and transformed entertainment
• The "Lost Generation" of writers and artists, disillusioned by the war, challenged traditional literary forms and themes

Government Policies and Regulations

• The Fordney-McCumber Tariff of 1922 raised tariffs on imported goods to protect American industries
• The Dawes Plan of 1924 provided a temporary solution to the issue of German war reparations and helped stabilize the German economy
• The Federal Reserve pursued a policy of easy credit, contributing to the stock market boom and speculation
• The Smoot-Hawley Tariff of 1930, enacted in response to the Great Depression, raised tariffs to record levels and exacerbated the global economic downturn
• The Reconstruction Finance Corporation, established in 1932, provided loans to banks, railroads, and other businesses to stimulate the economy

Legacy and Long-Term Effects

• The war and its aftermath redrew the map of Europe and the Middle East, with the collapse of empires (Ottoman Empire) and the creation of new nations
• The League of Nations, though ultimately unsuccessful, paved the way for future international organizations like the United Nations
• The economic boom of the 1920s was followed by the Great Depression, which had far-reaching social and political consequences
  • The New Deal policies implemented in response to the Depression expanded the role of the federal government in the economy and society
• The rise of totalitarian regimes in Europe (Nazi Germany and the Soviet Union) and the unresolved tensions from WWI set the stage for World War II
• The United States emerged from the war as a global economic and military power, setting the stage for its dominant role in the 20th century