790 ★ CHAPTER 20 From Business Culture to Great Depression
During the 1920s, Walter Lippmann published two of the most penetrat-
ing indictments of democracy ever written, Public Opinion and The Phantom Pub-
lic, which repudiated the Progressive hope of applying “intelligence” to social
problems in a mass democracy. Instead of acting out of careful consideration of the
issues or even individual self- interest, Lippmann claimed, the American voter was
ill- informed and prone to fits of enthusiasm. Not only were modern problems
beyond the understanding of ordinary men and women (a sentiment that had ear-
lier led Lippmann to favor administration by experts), but the independent citizen
was nothing but a myth. Like advertising copywriters and journalists, he contin-
ued, the government had perfected the art of creating and manipulating public
opinion— a process Lippmann called the “manufacture of consent.”
In 1929, the sociologists Robert and Helen Lynd published Middletown, a classic
study of life in Muncie, Indiana, a typical community in the American heartland.
The Lynds found that new leisure activities and a new emphasis on consumption
had replaced politics as the focus of public concern. Elections were no longer
“lively centers” of public attention as in the nineteenth century, and voter partici-
pation had fallen dramatically. National statistics bore out their point; the turnout
of eligible voters, over 80 percent in 1896, dropped to less than 50 percent in 1924.
Many factors helped to explain this decline, including the consolidation of one-
party politics in the South, the long period of Republican dominance in national
elections, and the enfranchisement of women, who for many years voted in lower
numbers than men. But the shift from public to private concerns also played a
part. “The American citizen’s first importance to his country,” declared a Muncie
newspaper, “is no longer that of a citizen but that of a consumer.”
The Republican Era
Government policies reflected the pro- business ethos of the 1920s. Recalling
the era’s prosperity, one stockbroker later remarked, “God, J. P. Morgan and the
Republican Party were going to keep everything going forever.” Business lob-
byists dominated national conventions of the Republican Party. They called
on the federal government to lower taxes on personal incomes and business
profits, maintain high tariffs, and support employers’ continuing campaign
against unions. The administrations of Warren G. Harding and Calvin Coolidge
obliged. “Never before, here or anywhere else,” declared the Wall Street Journal,
“has a government been so completely fused with business.” The two presi-
dents appointed so many pro- business members of the Federal Reserve Board,
the Federal Trade Commission, and other Progressive- era agencies that, com-
plained Nebraska senator George W. Norris, they in effect repealed the regula-
tory system. The Harding administration did support Secretary of Commerce
Herbert Hoover’s successful effort to persuade the steel industry to reduce the