3.4 The United States, 1919–41

Depth Study D – The United States, 1919‑1941

1. The Roaring Twenties – Economic Boom and Its Limits

After World War I the United States experienced a period of rapid expansion, but the prosperity was uneven across regions, sectors and social groups.

1.1 Factors that drove growth

1.2 Regional and quantitative picture

• Midwest & Northeast: Heavy industrialisation; industrial output rose ~50 % between 1920 and 1929.
• South & Rural West: Agriculture suffered; farm prices fell 60 % (1920‑1929) and many farms entered debt.
• National economy: Real GDP grew about 45 % in the decade; per‑capita income rose roughly 30 %.

1.3 Who benefited?

• Industrialists, bankers and large corporations – profits surged.
• Middle‑class consumers – access to new goods and rising manufacturing wages.
• Urban workers – better jobs in factories, transport and services.
• Farmers – short‑term gains from post‑war price spikes, but most entered a severe slump after 1920.
• Minorities & Southern whites – generally left out of the boom; share‑cropper families saw incomes fall.

1.4 Limits and hidden fragilities

• Persistent agricultural depression (prices down 60 % by 1929).
• Widening income inequality – the top 10 % owned over 50 % of wealth.
• Speculative excesses in the stock market; weak banking regulation left the system vulnerable.
• Regional disparity meant that the “boom” was not felt uniformly across the country.

2. Society & Culture in the 1920s

• Women: The 19th Amendment (1920) granted voting rights. Employment rose modestly – women made up ~15 % of the labour force by 1929, mainly in clerical, retail and textile jobs. Fashion and the “flapper” image symbolised greater social freedom, yet wages remained 40‑50 % lower than men’s and New Deal jobs later excluded many women from higher‑paying positions.
• African Americans: The Great Migration (≈6 million moved north) reshaped urban demographics; the Harlem Renaissance produced a flourishing of Black arts and literature. Discrimination persisted – many New Deal agencies upheld segregation and excluded Black workers from better‑paid jobs.
• Immigration: The Immigration Act of 1924 introduced strict national‑origin quotas, cutting arrivals from Southern and Eastern Europe by 90 % and virtually ending Asian immigration.
• Prohibition (1920‑1933): Enacted by the 18th Amendment and Volstead Act to curb alcohol consumption, driven by the temperance movement, wartime grain‑conservation arguments and moral reform. Instead it spurred a black market, organised crime (e.g., Al Capone), and massive loss of tax revenue. Public opinion turned against it, leading to repeal by the 21st Amendment in 1933.
• Culture & leisure: Jazz, Hollywood cinema, radio broadcasting and mass advertising created a shared national culture. Sports heroes (Babe Ruth, Jack Dempsey) and consumer fashions (flappers, cloche hats) epitomised modernity.
• Intolerance & Red Scare: 1919‑1920 “Red Summer” race riots and the Palmer Raids reflected fear of communism and heightened racial tension.

3. The Great Depression – Causes, International Impact and Social Consequences (1929‑1939)

3.1 Main causes

3.2 International repercussions

• Europe’s economies, already weakened by war reparations, suffered further as US credit dried up and the gold standard forced deflationary policies abroad.
• Countries such as Britain and France experienced banking crises and rising unemployment, deepening the global nature of the depression.

3.3 Social impact in the United States

• Unemployment peaked at 25 % (1933); many families lived on relief or in shanty towns (“Hoovervilles”).
• Bankruptcies hit small businesses and farms, accelerating internal migration – notably the Great Migration of African Americans to northern industrial centres.
• Psychological effects – loss of confidence in capitalism, growth of radical politics (Communist and Socialist parties) and increased labour unrest.
• Gender and racial disparities widened: women’s employment fell sharply, and Black workers were disproportionately represented among the unemployed.

4. The New Deal – Aims, Main Programmes and Evaluation (1933‑1941)

4.1 Three‑fold aim

Relief (immediate aid), Recovery (reviving industry and agriculture) and Reform (preventing a repeat of the crisis).

4.2 Key programmes

4.3 Evaluation – impact on different groups

• Urban workers: Relief schemes (CCC, WPA) reduced unemployment from 25 % (1933) to ~14 % (1937). However, many jobs were low‑paid and temporary.
• Farmers: AAA raised agricultural prices, but the programme favoured larger landowners; share‑croppers and tenant farmers often received little benefit.
• African‑American workers: New Deal agencies frequently upheld segregation; the CCC and WPA employed Black workers but paid them less and assigned them the most menial tasks.
• Women: Relief work opened limited opportunities (e.g., sewing projects, clerical jobs), yet most New Deal programmes excluded women from higher‑paying positions such as construction.
• Southern whites: Benefited from AAA subsidies and TVA projects, reinforcing the New Deal coalition that kept the Democratic Party dominant for decades.
• Constitutional challenges: NIRA declared unconstitutional in Schechter v. United States (1935); nevertheless, many reform measures survived and reshaped the American economic system.
• Overall success:
  • Relief – immediate hardship eased, but uneven distribution.
  • Recovery – industrial output recovered to pre‑Depression levels by 1937, yet the “Roosevelt Recession” (1937‑38) exposed lingering fragility.
  • Reform – banking stability restored (FDIC), stock‑market regulation introduced, and a social‑security safety net established.

5. Foreign Policy – From Isolationism to Interventionism (1919‑1941)

Why the shift?

• Growing threat of fascist aggression in Europe and Japan’s expansion in Asia.
• Economic considerations – Lend‑Lease revived US industry and reduced unemployment.
• Gradual change in public opinion after the fall of France (1940) and the Battle of Britain.
• Strategic need to protect Pacific interests, the Panama Canal and American trade routes.

6. Timeline of Major Events (1919‑1941)

7. Assessment Questions

1. Explain how the New Deal attempted to solve the economic crisis of the 1930s. In your answer, refer to at least three different programmes and assess their impact.
2. Discuss the social implications of the Great Migration for African Americans, including both opportunities and the challenges they faced.
3. Analyse the shift from isolationism to interventionism in US foreign policy between 1919 and 1941. Use specific legislation and events to support your argument.
4. Evaluate the effectiveness of the Neutrality Acts in preventing US involvement in World War II. Consider public opinion, economic factors and international events.

8. Suggested Further Reading

• John A. Garraty, The Great Depression: America, 1929‑1941 – detailed economic analysis.
• David M. Kennedy, Freedom from Fear: The American People in Depression and War, 1929‑1945 – comprehensive political and social narrative.
• Linda K. Kerber, Women’s History in the United States: The New Deal Era – gender‑focused study.
• Robin D. G. Kelley, Race Rebels: Culture, Politics, and the Black Freedom Struggle – Great Migration and Harlem Renaissance.
• Robert Dallek, Franklin D. Roosevelt and American Foreign Policy, 1932‑1945 – foreign‑policy evolution.

9. Diagram Suggestion