US Risks a Rerun of That 1920s Show
From trade agreements to tax treaties, its growing economic isolationism echoes a historical precedent with a very unhappy ending.
Not America’s finest hour.
Photographer: Bettmann/BettmannIt is a commonplace that America faces a new Cold War now that it has finally recognized that China is a Leninist power. But another historical comparison has drawn less attention: that America is facing a repeat of the 1920s. Given that the Cold War ended in victory and the 1920s ended in disaster, it’s a parallel worth pondering.
The 1920s was a golden age for US business. GDP grew by 5% a year in real terms from 1921 to 1929 — one of the best performances for an advanced country on record. Ford Motor Co. and General Motors Co. mastered the techniques of mass production. “Electric servants” in the form of washing machines and fridges became commonplace. On May 20, 1927, Charles Lindbergh made the first solo flight across the Atlantic; five months later, Al Jolson spoke the first words in the premiere of The Jazz Singer, signaling the arrival, respectively, of the age of mass flight and mass entertainment. The stock market boomed.