The Roaring Twenties Section 1: Politics of the 1920’s

Complete the KWL on the 1920’s

WWI helped economy a great deal When soldiers came home, there were not enough jobs Economy faced serious recession Economic slump Democrats were out – Republicans were in Post WWI

A.Harding Administration 1.Several notable appointments to his cabinet - a)Andrew Mellon – secretary of treasury i. balanced budget & lowered taxes b)Herbert Hoover – secretary of commerce i.Expand American business overseas Return to the normal way of doing things – like it was before the war!

B. Teapot Dome & Other Scandals 1.Other appointments were disastrous. Harding brings in his good friends to be his cabinet – “Ohio Gang”. a.Scandals resulted i.Veteran’s Bureau Scandal – Forbes stole $250 million by selling medical supplies from veteran’s hospitals and kept the money for himself ii.Teapot Dome Scandal – Albert Fall was bribed$300,000 by 2 oil executives to lease them government land with oil reserves. First cabinet secretary to go to prison following an investigation 2.Harding dies of a heart attack – were the scandals to blame? "I can take care of my enemies, but its my friends that keep me walking the floors at night"

The Teapot Dome Scandal This cartoon, published in 1924, comments on the scandal. 1.Why are the officials running? 2.How will the White House be affected? 3.What is the significance of the rolling oil tank? 4.According to the cartoonist, how will this scandal affect the government?

“You Lose” B. Coolidge Takes Office 1.“Silent Cal” very different than Harding 2.Coolidge set out repair damage – distanced himself from the Harding Administration a) forced officials involved with scandals to resign b) kept the most capable cabinet members (Hughes, Mellon, Hoover) 3.Felt the government should interfere as little as possible with business and industry

II. Policies of Prosperity 1.“Coolidge Prosperity” – pro-business policies that caused a rapid economic growth. Three major goals 1.Balance the budget 2.Reduce government debt 3.Cut taxes (people and business would spend and invest the money. This would cause the economy to grow and people would earn more money. The government would then collect more in taxes.) – supply side economics 2. Cooperative individualism – Herbert Hoover - encouraged businesses to form trade associations that would voluntarily share information with the federal government. Also believed business prosperity would help all be prosperous. Cut regulations on business Named business leaders to government agencies

 Pre WWI US was in debt  Post WWI – wartime allies owed the U.S. $10 billion+  By the 20’s – The U.S. was the dominant economic power in the world.  U.S. tries to use its economic power to promote peace and prosperity Trade and Arms Control

 Americans were tired of being entangled in European politics turn to isolationism  A national policy of avoiding involvement in world affairs  In reality the U.S. was too powerful and too interconnected with other countries economically to be truly isolationist  The U.S. tried to promote peace by using economic policies and arms control agreements Myth of Isolationism

The Dawes Plan -U.S. banks would loan Germany money to help it pay the war reparations it owed France and Britain - In return France & Britain would accept less in reparations from Germany and pay back more of the money they owed the U.S. The Washington Conference - U.S. invites 8 major countries to Washington to discuss disarmament. Proposing a 10 year stop on the construction of warships. - Result: Five-Power Naval Limitation Treaty with Britain, France, Italy and Japan Kellogg-Briand Pact - U.S. and 14 other nations agree to abandon war and settle disputes by peaceful means. London Naval Treaties -Extension of the Washington Conference. - Agree on ratios for warships, stopping the arms race through Italy and Japan do not sign this treaty Economic policies & arms control agreements