“The business of America is business. The man who builds a factory builds a temple. The man who works there worships there” President Calvin Coolidge.

““The business of America is The business of America is business. The man who business. The man who builds a factory builds a builds a factory builds a

temple. The man who works temple. The man who works there worships there”there worships there”

President Calvin Coolidge

Presidential Leadership in the 1920’sPresidential Leadership in the 1920’s

President Warren G. HardingPresident Warren G. Harding– Harding wins landslide election Harding wins landslide election

promising a return to promising a return to “normal”“normal”Return to Return to isolationismisolationism

Pro-business policiesPro-business policies

Make economy grow and create Make economy grow and create jobsjobs

Americans were Americans were war wearywar weary & & wanted a return to pre-war dayswanted a return to pre-war days

How did Harding Disappoint the People?How did Harding Disappoint the People?

Political ScandalsPolitical Scandals– Harding’s political Harding’s political

appointees were appointees were corruptcorrupt– Cabinet secretary was Cabinet secretary was

bribed and secretly bribed and secretly leased land to oil leased land to oil companies at companies at Teapot Teapot Dome, WyomingDome, Wyoming

– First time a First time a cabinet cabinet secretarysecretary was sent to was sent to prisonprison

– Harding dies in office of Harding dies in office of a heart attack before a heart attack before scandals are connected scandals are connected directly to himdirectly to him

Calvin Coolidge Takes OfficeCalvin Coolidge Takes Office““Silent Cal” Silent Cal” – Sworn in after Sworn in after

Harding’s deathHarding’s death– Coolidge was Coolidge was

different from different from HardingHarding

Not a big speech Not a big speech maker or party maker or party throwerthrower

Coolidge repaired Coolidge repaired damage caused by damage caused by scandalsscandals

Coolidge ProsperityCoolidge Prosperity““The business of America is The business of America is

business. The man who business. The man who builds a factory builds a builds a factory builds a

temple. The man who works temple. The man who works there worships there”there worships there”

Calvin CoolidgeCalvin Coolidge

What was Coolidge’s priority What was Coolidge’s priority as president?as president?– Pro big businessPro big business– Business was the most important Business was the most important

part in creating the American part in creating the American way of lifeway of life

– Began a period of rapid Began a period of rapid economic growtheconomic growth

Coolidge ProsperityCoolidge Prosperity

Industry Industry BoomsBooms– Quantity of goods made by industry doubledQuantity of goods made by industry doubled– More jobs were made and incomes roseMore jobs were made and incomes rose– People spent money on new productsPeople spent money on new products

Refrigerators, radios, phonographs, vacuum Refrigerators, radios, phonographs, vacuum cleanerscleaners

– Installment buyingInstallment buying (credit) allowed people to (credit) allowed people to spend more money than they could affordspend more money than they could afford

– Overspending became a serious economic Overspending became a serious economic problemproblem

Coolidge ProsperityCoolidge Prosperity

A Soaring Stock MarketA Soaring Stock Market– More people invested in the stock market More people invested in the stock market

than ever before. than ever before. (Bull Market)(Bull Market)– Stocks were bought on Stocks were bought on marginmargin

For 10% down payment, buyers held stocks until For 10% down payment, buyers held stocks until the price rose and sold it for a profitthe price rose and sold it for a profit

Margin buying works as long as stock prices riseMargin buying works as long as stock prices rise

– Margin buying became a cause for Margin buying became a cause for The Great The Great DepressionDepression of the 1930’s of the 1930’s

Foreign AffairsForeign AffairsPresidents Harding and Coolidge kept the Presidents Harding and Coolidge kept the U.S. out of European affairs (Isolation)U.S. out of European affairs (Isolation)

US remained out of the League of NationsUS remained out of the League of Nations

The US The US intervenedintervened in Latin America when in Latin America when American business interests were American business interests were threatened threatened

US signed the Kellogg-Briand PactUS signed the Kellogg-Briand Pact– This treaty outlawed war, but had no means of This treaty outlawed war, but had no means of

keeping the peacekeeping the peace

ConclusionConclusionHow did presidential leadership How did presidential leadership influence US policy during the influence US policy during the 1920’s?1920’s?

–Presidential leadership: Presidential leadership: Created a strong economyCreated a strong economy

Created a bull marketCreated a bull market

Returned the nation to pre-WW1 isolationReturned the nation to pre-WW1 isolation

Increased jobs and family incomeIncreased jobs and family income

Created an era of peace & prosperityCreated an era of peace & prosperity