Prohibition in the United States went into effect on January 16, 1920. It made the sale of any drink containing more than 1/2 ounce of alcohol illegal. Though the aim of Prohibition was to preserve the morality of the American public, it actually did quite the opposite.

Organized crime gained momentum in the 1920s, especially in urban areas, as the underground production and sale of alcohol became big business. Bootlegging, the illegal sale of alcohol, was a $60 million a year business for such gangsters as Al Capone, George “Bugs” Moran, and George Remus. It also lead to more than 300 murders.

Al “Scarface” Capone rose to power in the 1920s by overtaking much of the Chicago underworld. He made his money, and lots of it, off of illegal gambling and prostitution, as well as bootlegging. He is also the infamous figure behind the St. Valentine’s Day Massacre. He manipulated public officials with bribes and threats in order to control the city. Capone had many friends, but he also made powerful enemies such as George “Bugs” Moran. Capone was eventually imprisoned at Alcatraz for tax evasion.

“Bugs” Moran was another Chicago gangster in the 1920s. He ran bootlegging and gambling operations but, being a devout Catholic, no prostitution. He and his group were in an ensuing battle for control of the alcohol industry with Al Capone. It was members of Moran’s gang who were murdered by Capone’s gangmembers in the St. Valentine’s Day Massacre.

Remus was known as the “king of bootlegging” and ran his operation out of Cinncinati. Once a criminal defense lawyer, George used his knowledge of the law to find loopholes in the Volstead Act, which outlined the laws of Prohibition. He was able to produce and distribute alcohol under false pretenses. But like most kings of the underworld, Remus soon met his demise and was caught and incarcerated. Upon his release he promptly murdered his estranged wife, thus returning to prison.

The FBI, under the direction of J. Edgar Hoover, began to keep official and unofficial records on citizens and politicians. Though this research and documentation was meant to keep the country safe, it was often exploited. It is rumored that Hoover often used his extensive knowledge of the private lives of politicians for blackmail purposes. After his death in 1972, Hoover’s secretary spent days destroying his “unofficial” files.

One of the first false indications of a healthy economy in the 1920s was a huge increase in consumerism, the acquisition of goods. The use of mass-production and chain stores drove down prices and encouraged consumers to spend. At the same time, the concept of credit was being used to help more Americans buy durable goods such as cars and stoves. Widespread advertising was also influencing consumer behavior. Americans were also spending more money on entertainment, especially the movies.

After a brief recession following World War I, the U.S. entered an economic boom that lasted from 1921 until 1928. The income and standard of living for most Americans increased dramatically during this time. Government policy, increased productivity, and new technologies increased the prosperity of businesses. Meanwhile, farmers in the 20s were suffering. Government policy strongly favored big business, and agriculture was left on the back burner. However, it would soon turn out that those who owned land would be better off during the Depression years of the 1930s.

Many say the “Roaring Twenties” officially ended on Tuesday, October 29, 1929. The day is referred to as Black Tuesday because it is the day that investor panic led to the infamous stock market crash. In the next two months, the stock market would lose %50 of its value. Many prominent investors lost everything and saw no other option than to take their own lives.

The panic really began five days earlier, Black Thursday, when the market first began to slip and investors began to withdraw their money. The confidence in the market that had dominated an entire decade was ending. The Great Depression had begun.

Some noted causes for the crash are as follows:

 • uneven distribution of income

 • stock market speculation

 • excessive use of credit

 • overproduction of consumer goods

 • weak farm economy

 • government policies regarding business regulation

 • global economic problems