America, 1920–1973: Opportunity and Inequality
What's covered
Key facts
Al Capone was the most notorious gangster who profited from bootlegging during Prohibition in Chicago.
Underlying causes were speculation on margin (shares bought on credit), industrial over-production, weak unregulated banks, agricultural over-supply, and rising tariff barriers (Smoot-Hawley).
The US anti-war movement — student protests, draft evasion, and coverage of My Lai (1968/1969) — eroded political will to continue the war.
Despite the boom, most Black Americans faced poverty, Jim Crow segregation, KKK violence, and denial of basic civil rights.
Hoover believed prosperity would return naturally and opposed direct federal relief, preferring voluntary action by businesses and local charities.
In Brown v. Board of Education (1954) the Supreme Court ruled racial segregation in public schools unconstitutional, overturning the Plessy v. Ferguson "separate but equal" doctrine.
The 1920s US boom was driven by mass production, hire purchase (buying on credit), and booming new consumer industries (cars, radios, electrical goods).
US unemployment rose from roughly 3% in 1929 to nearly 25% by 1933, with around 12–15 million Americans out of work.
The Civil Rights Act of 1964 outlawed segregation and discrimination on grounds of race, colour, religion, sex, or national origin in public accommodations and employment.
American farmers did NOT share in 1920s prosperity: overproduction kept prices low, European markets closed by tariffs, and farm debt rose.
Sample questions
A taste of the 63 questions in this topic — answers marked. Sign up to practise the full set with spaced repetition.
Which of the following best explains why the American economy boomed in the 1920s?
- •A shortage of imports forced Americans to buy only domestically made products
- •America received large reparations payments from Germany and Britain after WW1
- ✓Mass production, hire purchase, and booming new industries driving consumer spending
- •The government invested heavily in public works programmes to create jobs
In what year did the Wall Street Crash occur?
- •1925
- •1928
- ✓1929
- •1931
What was the Watergate scandal and what were its consequences?
- •Nixon was caught selling US military secrets to the Soviet Union
- •Nixon was impeached after failing to disclose personal tax returns
- •Nixon's cabinet resigned en masse after he illegally extended the Vietnam War
- ✓Nixon's team broke into Democratic HQ; he covered it up; resigned August 1974
Why did American farmers NOT share in the prosperity of the 1920s?
- •Drought conditions across the Midwest destroyed harvests throughout the 1920s
- •Farmers invested in the stock market instead of their land, causing collapse
- ✓Overproduction kept prices low; European markets closed by tariffs; rising farm debt
- •The US government heavily taxed farm produce to fund post-war reconstruction
What happened on 'Black Tuesday' (29 October 1929)?
- •Congress reintroduced Prohibition after a wave of alcohol-related violence
- ✓Millions of shares sold in panic — prices collapsed, wiping out investors and banks
- •The New York Stock Exchange permanently closed after a fire destroyed its records
- •The US government declared bankruptcy and suspended gold payments
In what year did Richard Nixon resign the US presidency?
- •1968
- •1972
- ✓1974
- •1976
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