The great depression

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T he 1920s was a decade fi lled with sharp contrasts — between Prohibi- tion laws and speakeasy nightclubs, modern science and fundamentalist reli- gion, economic boom and fi nancial bust, popular heroes and social villains. Charles Lindbergh was one of the heroes. In May 1927, Lindbergh fl ew his small, single- engine plane, The Spirit of St. Louis, from New York to Paris, a distance of 3,620 miles. He did it alone and without stopping — a tense journey that stretched over 33 hours. Nobody had ever done this before. Return- ing home to tickertape parades, Lindbergh became Time magazine’s fi rst Man of the Year in 1928. The handsome young aviator captivated the nation by combining exper- tise in modern technology with the tradi- tional virtues of hard work and individual achievement. Amid the grinding routine of modern industrial life, Lindbergh showed that an adventurous individual could make a difference. Samuel Insull taught Americans the same lesson — with a twist. A fi nancial entre- preneur who was more important than Lindbergh and almost as well known, Insull began the decade as a hero and ended it as a villain. Insull was born in England and came to New York as the personal secretary to the great inventor Thomas Edison. In 1892, he moved to Chicago, where he built a small electrical power company into a giant enterprise. By 1907, Insull’s Commonwealth Edison Company was providing electrical power for the entire city; by 1924, his Chicago Rapid Transit Company was offering transportation to many of its residents as well. At the peak of his power in 1929, Insull controlled electric utility companies in 5,000 communities in thirty-two states. To assemble this utility empire, Insull used the tools of modern capitalism: He [Growing up, I never] thought of myself as an American. I came from Brooklyn, and in Brooklyn there were no Americans; there were Jews and Negroes and Italians and Poles and Irishmen. Americans lived in New England, in the South, in the Midwest: alien people in alien places. ––Norman Podhoretz (b.1930) Modern Times 1 9 2 0 – 1 9 3 223 C H A P T E R 670 Henretta_ch23_670-700.indd Page 670 9/6/08 4:15:09 PM user-s147Henretta_ch23_670-700.indd Page 670 9/6/08 4:15:09 PM user-s147 /Volumes/204/BSM009/ch23/Volumes/204/BSM009/ch23 © ‘ APUS/AMU - Property of Bedford St Martin's - 0-312-62422-0 / 0-312-62423-9 - Copyright 2009 C H A P T E R 2 3 Modern Times, 1920–1932 � 671 created a pyramid of holding companies that allowed him to manage companies val- ued at $500 million with a personal investment of only $27 million. He funded the rest by issuing low-priced stocks and bonds, which nearly one million Americans eagerly snapped up. Insull’s electrical empire, along with Henry Ford’s mass production techniques, helped to give Americans the highest standard of living in the world and to create a new consumer culture. Millions of Americans could now ...

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