Page 42 - Year 9 Knowledge Organiser

History: The USA in the 'Roaring 20s and 30s’: 1 of 3

Key Terms The Al Capone Story
Economic Boom Al Capone has become one of the most
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majority of businesses infamous individuals of the 20 Century.
The son of immigrants, he established
are doing well, sales are himself at a very young age as a gangster.
high, wages increase and By the age of 20 he had already had a
unemployment is low. Consequences of Prohibition number of jobs, committed various
Consumer Society violent crimes, been a member of a
a society where the January 1920, a new law was introduced in America. Prohibition – officially known as the 18 th notorious New York gang and had moved
buying and selling of Amendment to the Constitution – outlawed the making, selling or transporting of any drink to Chicago to work for a widely feared
goods is the most containing alcohol. gang boss. But was he really all that bad?
important activity. Stock The Impact on Society Playing the Stock Market Many thousands of people worked for Al
Market Prohibition ever worked because people still wanted to drink. They were prepared to break the Capone and many thousands more
Where shares in law they never wanted – the criminal gangs were only too willing to get the alcohol for them. These Shares are small parts of benefited from his acts of charity (such as
companies are bought gangs ran illegal bars called speakeasies, which sold bootleg alcohol smuggled in from abroad by businesses / companies. opening soup kitchens to provide food
and sold. bootleggers. They also sold moonshine - a home-made spirit that was sometimes so strong it caused These shares are sold on the for the homeless and poor).
Talkies serious illness. In fact, deaths from alcohol poisoning went up from 98 in 1920 to nearly 800 in Stock Market to investors.
Movies which had sound. 1926. Speakeasies were hidden away in cellars or private hotel rooms (or behind green doors – a The investor then owns a tiny Al left New York in 1919and moved to
Jazz secret sign of a speakeasy). In 1920 there only 14,313 arrests for drunkenness; by 1925 this had part of the business. During Chicago, America’s second largest city. A
type of music from the gone up to 51,361. Similarly, in 1922 there were 494 arrests for drunk driving, but by 1925 this the 1920s‘playing the stock gang boss called ‘Terrible’ Johnny Torrio
Southern states typified had gone up to 820. Total arrests for drinking offences nearly tripled between 1920 and 1925. market’ became a national had offered him a job. Torrio and Al soon
by its fast tempo, lively The Impact on Organised Crime craze. took over a few of the other gangs.
Chicago was perfectfor criminals because
rhythms. Prohibition caused a rise in crime. Gangsters made so much money that they could often bribe or Several million people, not just many policemen, judges and even the
Flappers intimidate the police, lawyers and judges to cooperate with them and not prosecute them. They the rich but ordinary mayor tookbribes to ‘look the other
young independent also made money through fixing horse and dog racing, running brothels and racketeering, which was Americans too, bought shares way’.
women who wore make- when businessmen and shopkeepers aid money to the gangs to stop them smashing up their in all sorts of companies and Torrio and Al were soon making a fortune
up, short dresses and premises. A new phrase was coined to describe this behaviour – organised crime. One gang leader, made money by selling them from bootlegging, racketeering, fixing
socialised without the notorious Al Capone, made $10 million a year from racketeering (£875 million in todays on. They then usually bought horse and dog races and overseeing
chaperones. money). even more shares with the prostitution. Al liked to show off his
profits in the hopes of making
Prohibition With booze illegal, the government was unable tax the sale of alcohol. This amounted to the more money again! In the money and enjoyed being photographed.
18 Amendment: equivalent of $11 billion. Money that would have gone directly to the government in tax revenue 1920speople often bought Everyone knew all of his activities, and he
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went to gangsters like Al Capone.
banned the sale, shares with money borrowed was arrested from time to time, but it was
production or transport EconomicBoom from banks or with a small impossible to convict him because of his
of any alcoholic drink. deposit of 10%. They would control of the police and the fact that no
Bootlegger The boom didn’t just happen because America largely stayed out of World War I, (isolationism) or because then pay the remaining witnesses ever came forward. This type
person who America was able to earn lots of money selling goods and loans to Europe. There are 3 key reasons why the amount with the profits they of illegal activity is known as ‘organised
smuggled illegal boom was possible. made when they sold the crime’ – Al Capone organised his criminal
alcohol from Help fromthe Republican Government: the Fordney-McCumber Tariff Act which put high taxes on goods entering shares. This method of buying activities like a well run business. He even
abroad. the country (making foreign goods more expensive to buy).The government cut taxes paid by rich people and shares was called buying on had an accountant, a business plan, and a
Speakeasy companies so that they could start more companies and create more jobs. # the margin. This worked well hierarchy in his organisation.
Illegal/hidden bars Growing Industries and Mass Production:The growth of the motor industry was a massive boost to the American as long as the value of shares On 14 February 1929, Capone
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which sold alcohol economy. Before long industries were using assembly lines – where products are built bit by bit by different continued to rise. attempted to get rid of his biggest rival –
during prohibition. people – to help them mass produce items. In 1920 only 4 million people ‘Bugs’ Moran – and his North Side Gang.
Racketeering New Ways to Buy and Sell: Advertising as we know it was born in the 1920s. Colourful billboards, newspapers and owned shares. By 1929there Dressed as a policemen, two of Al’s
gangsters or magazines urged people to buy the latest gadget ad keep up with their neighbours. People were encouraged to use were 20million, including hitmen shot dead seven members of the
organised crime new ‘by now pay housewives, car workers and gang in the St.
groups demanded later’ schemes, which meant that buyers could pay for goods in small instalments over a fixed period of time. factory workers as well as the Valentine’s Day Massacre. Moran survived
money from wealthy upper classes. but soon retired.
businesses.