The loop in a page loads only the content of the page. Thus you see only one post.
You have to set up a “Page of Posts”. You can find basic examples in the codex at Page Templates. But using it as static front page results in some problems. The links to follow pages will not work. You have to evaluate get_query_var('page') instead of get_query_var('paged').
There are also some plugins, but I don’t think that they solve the problems with a static front page:
- Posts in Page
- Powerful Posts Per Page
- Add Posts to Pages
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