3.2.4 Economic Liberalism 1900-1920
Completion requirements
3.2.4 Economic Liberalism 1900-1929
The 20th Century brought greater control over laissez-faire capitalism and the way that governments intervene in their economic systems. However, government intervention in the economy was not consistent and did not occur to a great extent until the
depths of the Great Depression in the 1930s.
You learned about the first years of the 20th Century, and various attempts to provide better working conditions on page 3.1.11 Welfare Capitalism, and political movements such as progressivism on page 3.1.12. During the first World War (1914-1918) there was an unprecedented "total war" in Europe with the participation of almost every nation in the world. During this war, national governments supported their military involvement through building up their armies and providing the "material" necessary for war. The war forced governments to go into greater debt.
While the Soviet Union battled itself with a civil war, the rest of the developed world continued with economic liberalism. The decade after the first World War became known as the "Roaring Twenties." Soldiers re-entered the workforce. Their wartime wages and hope for the future fueled the economy. Europe was in a rebuilding phase, and governments borrowed to restore their countries. There were many technological innovations that spurred consumerism such as automobiles, movies and radio. Not only did many new consumer goods hit the market, but businesses began to sell products on credit. Customers could pay in installments and pay of their new product month by month.
Western Europe was rebuilding their war torn land and economies. American farm production was booming due to European demand for bread. Increased consumer demand from Europe and overall confidence about the future in Europe and North America led to great industrial growth.
You learned about the first years of the 20th Century, and various attempts to provide better working conditions on page 3.1.11 Welfare Capitalism, and political movements such as progressivism on page 3.1.12. During the first World War (1914-1918) there was an unprecedented "total war" in Europe with the participation of almost every nation in the world. During this war, national governments supported their military involvement through building up their armies and providing the "material" necessary for war. The war forced governments to go into greater debt.
While the Soviet Union battled itself with a civil war, the rest of the developed world continued with economic liberalism. The decade after the first World War became known as the "Roaring Twenties." Soldiers re-entered the workforce. Their wartime wages and hope for the future fueled the economy. Europe was in a rebuilding phase, and governments borrowed to restore their countries. There were many technological innovations that spurred consumerism such as automobiles, movies and radio. Not only did many new consumer goods hit the market, but businesses began to sell products on credit. Customers could pay in installments and pay of their new product month by month.
Western Europe was rebuilding their war torn land and economies. American farm production was booming due to European demand for bread. Increased consumer demand from Europe and overall confidence about the future in Europe and North America led to great industrial growth.
Watch this silent advertisement from around 1926. This commercial played before the movie in theatres.
Read "The Roaring Twenties" from pages 201 to 205 in your text, Perspectives on Ideology.
Take notes on the following questions:
- How did the prosperity of the 1920s reflect classical liberal principles?
Watch this video to learn more about why this decade was called the Roaring Twenties. Pay close attention to how classical liberal beliefs, such as competition, private property, self-interest and limited government were promoted during this time period.
""The Roaring 20's: Crash Course US History #32", CrashCourse, You-Tube