Chapter 16 Normalcy and Good Times 1921 - 1929
Jan 20, 2016
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