Chapter 16

Normalcy and Good Times

1921 - 1929

Presidential Politics

• The Harding AdministrationProduct of the Ohio

political machineWon the presidency in

1920 on the slogan “Return to Normalcy” – a return to normal life after WWI

Harding very popular

President Warren G. Harding

I wonder how many of these

kids are gonna pass

the quiz?

Presidential Politics

• The Ohio GangHarding gave many

government posts to friends and political allies who were former poker-playing buddies

These friends sold jobs, pardons, and medical supplies from VA hospitals

I heard that we won’t even get to use notes on the

quiz!! Oh Crap! What will we do now?

Maybe we’ll actually have to

study!!

Presidential Politics

• Harding died of a heart attack

• Teapot Dome and other Scandals Sec of Interior, Albert Fall,

allowed private companies to lease lands containing US Navy oil reserves

Fall convicted – sent to prison

AG Harry Daugherty – claimed immunity or freedom from prosecution

Forced to resign after taking bribes

The Presidents - Harding

Presidential Politics

• The Coolidge AdministrationHonest and capableTook office upon death

of HardingBelieved that

prosperity rested on business leadership

Kept government out of the way of business

President Calvin Coolidge

Presidential Politics

• The Election of 1924 Took Democrats 103

attempts to find a candidate that was acceptable – John Davis

Coolidge ran on slogan “Keep Cool with Coolidge”

Farm. Labor, and religious activists formed the Progressive Party and nominated Robert La Follette

Coolidge won the presidency

A Growing Economy

• American wages increased while work hours decreased

• Mass Production – large-scale product manufacturing usually done by machinery created more supply and reduced consumer costs

A Growing Economy

• The Assembly LineFirst adopted by

carmaker Henry FordDivided operations into

simple tasks that unskilled workers could do and cut unnecessary motion to a minimum

Building one car went from 12 hours to 93 minutes

A Growing Economy

The Model T – price in 1908 was $850, in 1914 $490, and in 1924 $295

Lower the cost of the car – increase volume of sales

Ford undercut unions by raising wages to $5 a day and reducing work hours to 8-hour shifts

Ford’s success brought competition from new companies General Motors and Chrysler

“You can get the car in any color you want as long as it’s black” – Henry Ford

A Growing Economy

The auto industry spurred growth in other industries including rubber, glass, nickel and lead

The automobile went from a rich man’s toy to a necessity for the middle class

Commuting became a new phenomenon

This would be so cool if we actually had some gas!

A Growing Economy

• Consumer Goods Industry More disposable income

spurred new products like electric razors, disposable tissue

Labor-saving devices like electric irons, vacuum cleaners, and washing machines

More emphasis on fashion and personal care like mouthwash, deodorants, and cosmetics

A Growing Economy

• The Airline IndustryWright BrothersGlenn Curtiss

Made innovations in design that allowed rigid wings and much larger aircraft

Invented first flying boatCharles Lindbergh

1927 first solo flight across Atlantic

Plane named Spirit of St. Louis

A Growing Economy

• The Radio Industry1926 National Broadcasting

Company (NBC) establishedBy 1927 almost 700 radio

stations dotted the country1928 Columbia Broadcasting

System (CBS) created coast-to-coast network

Radios provided entertainment in home and advertising

A Growing Economy

• Higher wages / shorter hours created national spending spree

• Easy consumer credit caused many Americans to go into debt to buy goods

• Pre-1920’s debt was considered shameful- now attitudes changed

• Many bought products on “installment plan”

A Growing Economy

• Industries began to develop more complex structure requiring the hiring of managers

• Caused the rise of business schools

• Expanded the size of the middle class

• Welfare Capitalism – companies allowed workers to buy stock, profit-share, and receive medical care and pensions

A Growing Economy

• Unions lost influence due to more generous benefits from management

• Businesses promoted the Open Shop – workplaces where employees were not required to join the union

• Farmers left out of the prosperity of 1920’s• Technology allowed more crops but demand

remained low• The Fordney-McCumber Act raised tariffs that

actually decreased demand for US farm products

Policies of Prosperity

• The Mellon Program Andrew Mellon was

Secretary of the Treasury under Harding, Coolidge, and Hoover

Mellon focused on reducing debt, balancing the budget, and lowering taxes

The idea that lowering taxes would cause people to spend more and thus the government would collect even more taxes is called supply-side economics

Secretary of the Treasury – Andrew Mellon

What are you looking at?

Policies of Prosperity

• Secretary of Commerce - Herbert Hoover

• Encouraged manufacturers and distributors to form their own trade associations which would voluntarily share information with the federal government - This was called cooperative individualism

• This would reduce costs and promote economic efficiency

Secretary of Commerce Herbert Hoover

Policies of Prosperity

• Trade and Arms Control After WWI, America was

the dominant economic power in the world

Most Americans did not want their country involved in world affairs. This was called isolationism

America was too powerful NOT to be a part of the world

Policies of Prosperity

• The Dawes Plan (Charles Dawes) European Allies owed US

money from war but they could not make the payments

The Allies were making Germany pay reparations – payments as punishment for starting the war

Germany could not pay US made deal that US

would loan money to Germany to pay the Allies so the Allies could pay the US

Policies of Prosperity

• The Washington ConferenceMeeting of US and eight major countries to

halt arms raceSecretary of State Charles Evan Hughes

proposed a 10-year moratorium (a pause) on construction of warships

The Kellogg-Briand Pact – US and 14 nations signed pact to ban/outlaw war

Treaty Signers Terms Weaknesses

Four Power Treaty US, Great Britain, France, Japan

All agreed to respect each other’s territory in the Pacific

Full and open negotiations in event of disagreements

Mutual defense of other co-signers not specified

Five Power Treaty US, Great Britain, France, Japan, Italy

All agreed to freeze naval production at 1921 levels and halt production of large warships for 10 years

US and Great Britain would not build new naval bases in the Western Pacific

No restrictions on construction of smaller ships such as submarines and destroyers

Did not place restrictions on land forces

Nine Power Treaty US, Great Britain, France, Japan, Italy, Belgium, China, The Netherlands, Portugal

All agreed to preserve equal commercial rights to China – a reassertion of the Open Door Policy

No enforcement of the terms of Open Door Policy specified

Quiz

• President Coolidge’s simple and frugal manner contrasted with the booming, materialistic era called the…

• Roaring Twenties• Harding’s Secretary of the Interior, Albert Fall, was

implicated in what scandal? • Teapot Dome• What system of production was adopted by Henry Ford• The Assembly Line• To create consumers for their products, manufacturers

turned to… • Advertising

Quiz

• Henry Ford changed the automobile from a toy of the wealthy to a necessity of the…

• Middle Class• What crippled the German economy after WWI?• Reparation payments• What was Hoover’s philosophy regarding business and

government? • Cooperative individualism• Friends of President Harding who were appointed to

government jobs were called… • The Ohio Gang

Quiz

• What raised tariffs to protect US businesses (but hurt farmers)?

• The Fordney-McCumber Act• What was the policy of avoiding involvement in foreign

affairs? • Isolationism• What is large-scale manufacturing usually be machinery

called? • Mass production• A fancy word for a pause in something… • A Moratorium

Quiz

• What pact or agreement outlawed war?

• The Kellogg-Briand Pact

• What was Harding’s campaign slogan in 1920?

• Return to Normalcy

• What is another word for freedom from prosecution?

• Immunity