Topic > American History: From Boom to Bust: 1920-1929 - 903

From Boom to Bust: 1920-1929 The beginning of this decade was an economic boom. With the war over, people were happy and wealthy. This didn't last long. By the end of the century the Great Depression would begin. At the beginning of the 1920s America was in the midst of an economic boom, people were happy: the First World War was over and Americans were rich. But ultimately, due to Prohibition, and largely due to the stock market crash, the American economy quickly descended into the Great Depression. During this time the 18th Amendment, Prohibition, was passed. Prohibition supporters were initially surprised by what did not happen during the drought era. When the law took effect, real estate developers and landlords expected rents to rise as saloons closed and neighborhoods improved. Theatrical producers expected an increase in customers as Americans sought new ways to entertain themselves, ways that didn't involve alcohol. But this did not happen. Instead, there has been a decline in the amusement and entertainment industries throughout the United States. Some restaurants even went out of business, as they could no longer make a profit without legal liquor sales. Overall, the initial economic effects of Prohibition were largely negative. The closing of breweries, distilleries, and saloons has led to the elimination of thousands of jobs, and in turn, thousands of other jobs have been eliminated for barrel makers, truck drivers, waiters, and other related trades. One of the most profound effects of Prohibition was on government tax revenues. Before Prohibition, many states relied heavily on excise taxes on liquor sales to fund their budgets. Nearly 75% of New York's revenue came from alcohol taxes, but with Prohibition in effect, all that revenge... middle of paper... draws attention to that. Liquor was sold behind closed doors and easy talk became very common. The 19th Amendment was also ratified in the 1920s. After 81 years of campaigning, women gained the right to vote. During this period the Klu Klux Klan, which gained popularity, took political control of seven states. A very famous case in the 1920s was the Scopes Monkey Trial. In 1925 teacher John Scopes was put on trial for teaching evolution. This raised a nationwide debate over whether people believed in evolution or creationism. Overall there were a couple of major amendments passed during the 1920s and little political discussion. The 1920s were a time of economic boom, but this boom ended in a bust. It was a great time to be an American, but it only lasted so long. The stock market crash was a blow to the American economy that would not be easily healed.