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Politics, The Politics, The Economy and Economy and
Business of the Business of the 1920’s1920’s
Prosperity and Prosperity and Its PriceIts Price
Essential QuestionsEssential Questions What types of What types of Presidents Presidents were Harding and Coolidgewere Harding and Coolidge??
What were the What were the scandalsscandals of of the the HardingHarding Administration? Administration?
What role did the US have in What role did the US have in the world?the world?
Why did Why did big business big business flourish in the 1920’s?flourish in the 1920’s?
Old Pre-war Issues Old Pre-war Issues DisappearDisappear
Progressive ReformProgressive Reform ImperialismImperialism WarWar Treaty Making Treaty Making Responsibility of LeadershipResponsibility of Leadership Americans wanted a “return Americans wanted a “return to normalcy”to normalcy”
The Election of 1920The Election of 1920RepublicansRepublicans
Warren G. Harding Warren G. Harding (R)(R)
PresidentPresident
Calvin Coolidge (R)Calvin Coolidge (R)
Vice - PresidentVice - President
The Election of 1920The Election of 1920** Should America join the newly Should America join the newly form League of Nations?form League of Nations?
*Was making the world safe *Was making the world safe of democracy worth it?of democracy worth it?
*Did the US need the idealism *Did the US need the idealism and post-war vision of and post-war vision of President Wilson?President Wilson?
*Were the disappointments of *Were the disappointments of the post-war period what the post-war period what Americans expected?Americans expected?
The Election of The Election of 19201920
DemocratsDemocratsJames M. CoxJames M. Cox (D) – (D) – PresidentPresident
Franklin D. RooseveltFranklin D. Roosevelt (D) - VP(D) - VP
Election Results Election Results
Harding’s CabinetHarding’s Cabinet Sec. of State - Charles Sec. of State - Charles Evan HughesEvan Hughes
Sec. of the Treasury - Sec. of the Treasury - Andrew MellonAndrew Mellon
Sec. of Commerce – Sec. of Commerce – Herbert HooverHerbert Hoover
Sec. of the Interior – Sec. of the Interior – Albert B. FallAlbert B. Fall
Attorney Gen. – Harry M. Attorney Gen. – Harry M. DaughertyDaugherty
Domestic IssuesDomestic Issues MellonMellon’s Fiscal Policy :’s Fiscal Policy : Budget Reform, National Budget Reform, National Debt ReductionDebt Reduction
Tax cuts for Corporations, Tax cuts for Corporations, Business, and Wealthy Business, and Wealthy AmericansAmericans
Lassie - FaireLassie - Faire Economics Economics New Freedoms for Big New Freedoms for Big BusinessBusiness
Harding’s Foreign Harding’s Foreign PolicyPolicy Washington Naval Conference Washington Naval Conference
1921 – Sec. of State Charles E. 1921 – Sec. of State Charles E. HughesHughesThe US, Britain, France, Japan, The US, Britain, France, Japan, and Italy reduced the # and Size and Italy reduced the # and Size of warshipsof warships
The Fordney – Mc Cumber TariffThe Fordney – Mc Cumber TariffIncreased the tax on imports 60%Increased the tax on imports 60%Germany could not pay back the Germany could not pay back the
Allies, GB and France could not Allies, GB and France could not pay back the USpay back the US
““The Ohio Gang”The Ohio Gang” President Harding admitted he did President Harding admitted he did
not understand the issues, he did not understand the issues, he did not enjoy the jobnot enjoy the job
Some of Harding’s friends (Old Some of Harding’s friends (Old Card buddies and political cronies) Card buddies and political cronies) he had placed in important he had placed in important positions became corrupt.positions became corrupt.
They were dubbed “They were dubbed “The Ohio The Ohio Gang”Gang”
Harding remarked “I have no Harding remarked “I have no trouble with my enemies…But my trouble with my enemies…But my damned friends…They’re the ones damned friends…They’re the ones that keep me walking the floor that keep me walking the floor nights.”nights.”
The Scandals – The Scandals – The Veterans BureauThe Veterans Bureau
In 1925 In 1925 Charles R. ForbesCharles R. Forbes the the former Director of the Veterans former Director of the Veterans Bureau received a two-year Bureau received a two-year prison sentence and a $10,000 prison sentence and a $10,000 fine for bribery and conspiracy.fine for bribery and conspiracy.
His group made millions His group made millions awarding government awarding government contracts connected with the contracts connected with the care of disabled veterans.care of disabled veterans.
Charges against Charges against DaughertyDaugherty
Attorney General Harry M. Attorney General Harry M. Daugherty had received $ Daugherty had received $ from liquor dealersfrom liquor dealers who who were evading prohibition were evading prohibition laws.laws.
He failed to prosecute He failed to prosecute Forbes, and in 1924 he Forbes, and in 1924 he was forced to resign.was forced to resign.
Tea-Pot Dome ScandalTea-Pot Dome Scandal Sec. of the Interior Albert Sec. of the Interior Albert FallFall received hundreds of received hundreds of thousands of dollars in thousands of dollars in payoffs when he payoffs when he secretly secretly leased navy oil reserves in leased navy oil reserves in Teapot Dome, WY and Elk Teapot Dome, WY and Elk Hills, CaHills, Ca to developers to developers
He eventually became the He eventually became the first cabinet member to go first cabinet member to go to jailto jail
Tea Pot –Dome ScandalTea Pot –Dome Scandal
Extra Maritial AffairExtra Maritial Affair
Harding’s DeathHarding’s Death In summer 1923 Harding knew In summer 1923 Harding knew
the scandals were soon to go the scandals were soon to go public, so he took a vacation to public, so he took a vacation to Alaska to escape the stressAlaska to escape the stress
On August 2On August 2ndnd, 1923 Harding , 1923 Harding died of an apparent heart attack died of an apparent heart attack or stroke. Some speculate he or stroke. Some speculate he was poisoned maybe by his was poisoned maybe by his wife.wife.
Vice- President Calvin Coolidge Vice- President Calvin Coolidge became Presidentbecame President
Calvin Coolidge (R)Calvin Coolidge (R) Nicknamed “Silent Cal”Nicknamed “Silent Cal” Believed in Small Gov. and Believed in Small Gov. and
Lassie- Faire EconomicsLassie- Faire Economics Low Taxes =Increased ProfitsLow Taxes =Increased Profits Famous Quote “ The business Famous Quote “ The business
of America is business." of America is business." Business and Stocks flourishedBusiness and Stocks flourished
Vetoed the Vetoed the McNary-Haugen McNary-Haugen Farm BillFarm Bill which would have which would have helped farmershelped farmers
President CoolidgePresident Coolidge
The Dawes PlanThe Dawes Plan Post-war England and France owed Post-war England and France owed
the US billionsthe US billions Germany could not pay the Germany could not pay the
reparations of $33 billionreparations of $33 billion The US would invest in Germany and The US would invest in Germany and
stretch out its repayment period.stretch out its repayment period. Germany could pay back the AlliesGermany could pay back the Allies The Allies could pay back the US The Allies could pay back the US
from the warfrom the war US get its money plus interestUS get its money plus interest
Foreign PolicyForeign Policy The US reduced the debt The US reduced the debt demands from Europe in demands from Europe in 1925-26 but the high tariff 1925-26 but the high tariff made it difficult to repaymade it difficult to repay
In 1928 the US , France and In 1928 the US , France and sixty other nations signed sixty other nations signed the the Kellogg- Briand PactKellogg- Briand Pact which renounced which renounced aggression and outlawed aggression and outlawed war.war.
The Election of 1924The Election of 1924 Coolidge benefited from Coolidge benefited from general prosperitygeneral prosperity
He fit the He fit the pro-business pro-business environment of the 1920’senvironment of the 1920’s
Lower TaxesLower Taxes and Federal and Federal SpendingSpending
He easily defeated John W. He easily defeated John W. Davis (D) and Robert M. La Davis (D) and Robert M. La Follette ( P)Follette ( P)
The Election Of 1928The Election Of 1928 Coolidge chose not to run in 1928Coolidge chose not to run in 1928 The Republicans chose former The Republicans chose former
head of the Food Administration head of the Food Administration during WWI and the Secretary of during WWI and the Secretary of Commerce Commerce Herbert HooverHerbert Hoover
The Democrats chose the career The Democrats chose the career politician and four time governor politician and four time governor of New York of New York Alfred E. SmithAlfred E. Smith
The two candidates reflected the The two candidates reflected the differences in America differences in America
Hoover (R) VS Smith (D)Hoover (R) VS Smith (D)HooverHoover – Native born from – Native born from Iowa, Self made Iowa, Self made millionairemillionaire
ProtestantProtestantProhibition Prohibition (DRY)(DRY)Small Town LifeSmall Town LifeFundamentalistFundamentalistTraditional Sources of Traditional Sources of CultureCulture
Hoover Vs Smith IIHoover Vs Smith II Smith – A product of NYC Lower Smith – A product of NYC Lower
East Side East Side (Immigrant)(Immigrant) Irish, Italian, and German Irish, Italian, and German
ancestryancestry Roman CatholicRoman Catholic Worked in the political machine Worked in the political machine
Tammany Hall in NYCTammany Hall in NYC Progressives as advisorsProgressives as advisors Urban, Spoke with an accentUrban, Spoke with an accent Wet Wet (Against Prohibition)(Against Prohibition) Career PoliticianCareer Politician
Hoover Wins!Hoover Wins! The election was a referendum The election was a referendum
on Republican leadership in the on Republican leadership in the 1920’s1920’s
Most Americans thought the Most Americans thought the prosperity would continueprosperity would continue
Hoover “We in America are Hoover “We in America are nearer to the final triumph over nearer to the final triumph over poverty than ever before.”poverty than ever before.”
Smith did better in urban areas Smith did better in urban areas which gave democrats hopewhich gave democrats hope
The EconomyThe Economy The Second Industrial RevolutionThe Second Industrial Revolution : :
ElectricityElectricity replaced steam as the replaced steam as the main power sourcemain power source
Machine Tools, Assembly lines, Machine Tools, Assembly lines, Railroads, Iron and Steel Railroads, Iron and Steel pioneered mass production pioneered mass production techniquestechniques
New Consumer Durable GoodsNew Consumer Durable Goods: : Cars, Radios, Washing Machines Cars, Radios, Washing Machines and Telephones were producedand Telephones were produced
Canning, chemicals, synthetics, Canning, chemicals, synthetics, and plastics were utilized and plastics were utilized
The 1920’s Construction The 1920’s Construction BoomBoomResidential Housing, Non-Residential Housing, Non-
residential and public residential and public construction all showed construction all showed growth after 1921.growth after 1921.
The growth of The growth of automobile automobile ownershipownership, improved , improved public mass transit and public mass transit and easier credit for home easier credit for home buyers made it possiblebuyers made it possible
The Modern CorporationThe Modern Corporation New corporate executives, plant New corporate executives, plant
managers, and engineers formed a managers, and engineers formed a new elite new elite
They stressed scientific management They stressed scientific management and the latest theories of behavior and the latest theories of behavior psychology to promote stability, psychology to promote stability, productivity, and profitabilityproductivity, and profitability
Product Diversification, Industrial Product Diversification, Industrial research, and Distribution was keyresearch, and Distribution was key
GM, Ford, GE, Westinghouse, DuPont, GM, Ford, GE, Westinghouse, DuPont, A&P, and RCA were successfulA&P, and RCA were successful
Welfare CapitalismWelfare Capitalism Employers raised wages for some Employers raised wages for some
workers and provides such workers and provides such benefits as paid vacations, health benefits as paid vacations, health plans, recreation programs, and plans, recreation programs, and English classes for immigrants.English classes for immigrants.
The The American PlanAmerican Plan called for open called for open shops and made unions look shops and made unions look foreign or un-Americanforeign or un-American
Company Unions were establishedCompany Unions were established Union membership dropped from Union membership dropped from
5 mil in 1920 to 3.5 mil by 19265 mil in 1920 to 3.5 mil by 1926
The AutomobileThe Automobile Henry Ford’s perfection of the Henry Ford’s perfection of the
assembly line allowed affordable assembly line allowed affordable cars to reach millionscars to reach millions
The Model T came only in black and The Model T came only in black and cost less than $300.cost less than $300.
Thousands of new roads were builtThousands of new roads were built Gas stations, Motels, repair stations, Gas stations, Motels, repair stations,
tourist camps, traffic signals and tourist camps, traffic signals and shopping centers all were a result of shopping centers all were a result of the automobile.the automobile.
Teenagers now went on un-Teenagers now went on un-chaperoned dateschaperoned dates
Urban Sprawl Began-Growth of CitiesUrban Sprawl Began-Growth of Cities
Modern AdvertisementsModern Advertisements Companies hired psychologists Companies hired psychologists
to study people’s desire for to study people’s desire for youthfulness, beauty, health, youthfulness, beauty, health, and wealth.and wealth.
Brand Names became familiar Brand Names became familiar coast to coastcoast to coast
Luxury items were now Luxury items were now necessitiesnecessities
Ex. of Products: Ex. of Products: Lucky Strike, Lucky Strike, Kleenex, Victrola, and ListerineKleenex, Victrola, and Listerine
Ailing IndustriesAiling Industries Prices dropped sharply after orders Prices dropped sharply after orders
for cotton, hogs, and corn declined for cotton, hogs, and corn declined due to a surplus by 1920.due to a surplus by 1920.
Farmers expanded their debtFarmers expanded their debt during during the war buying machinery, tractors, the war buying machinery, tractors, and more land.and more land.
Farm mortgages doubled between Farm mortgages doubled between 1910-19201910-1920
The Gov. Efforts to buy surpluses The Gov. Efforts to buy surpluses and stabilize prices was vetoed and stabilize prices was vetoed twice. twice. (McNary-Haugen Farm Bills)(McNary-Haugen Farm Bills)
Railroads and Coal Mining also Railroads and Coal Mining also suffered in the 1920’ssuffered in the 1920’s
