DCFU Monday: Why do you think it’s called the roaring twenties? Is this a good name for the time period? Why or why not?

Normalcy and Good Times Unit 4 Chapter 8

The Warren Harding Administration ( ) – 1920 Election Harding promised Americans a “return to normalcy” – The Ohio Gang Harding appointed corrupt friends to govt. positions – The Veterans Scandal- Charles Forbes sold medical supplies meant for veterans hospitals and pocketed the money – The Teapot Dome Scandal- Albert Fall accepted bribes from oil companies to lease public land that contained U.S. oil reserves – Harding’s Death Aug 1923 Harding died from a heart attack in San Fran, CA V.P. Calvin Coolidge was sworn in as President – “Silent Cal” tried to restore integrity of govt. and expand prosperity; re-elected in1924

A Growing Economy The Rise of New Industries Mass Production and the Assembly Line – Large-scale manufacturing decreased costs for businesses and increased supply of products – Henry Ford’s assembly line became the model of efficiency in the 1920s Led to a decrease in time to make vehicle and price of vehicles

Promoting Prosperity The Andrew Mellon Program – Balance the budget – Reduce government debt – Cut taxes – Supply-side Economics-lower taxes meant more $ for businesses and consumers to spent and invest

Consumerism Consumer Goods Industry – More income = greater demand for new products – Appliances and personal hygiene products Easy Credit – Installment plans -go into debt to purchase products Mass Advertising – Advertising industry boomed – Advertisers used persuasive messages and preyed on consumers fears Welfare Capitalism – Companies allowed workers to buy stock, participate in profit sharing – provided employees with medical care and pensions – Encouraged loyalty to employer and increased productivity "Why should life be work, when we all can borrow. Let's think only of today, and not worry about tomorrow."--Zelda Fitzgerald

1920s Advertising

Helping Farmers in the 1920s Agricultural Depression – Farmers bought too much land/supplies during WW1 – Demand decreased after war – Fordney-McCumber Tariff- decreased demand for agriculture goods in Europe – Surplus crops led to a drop in prices McNary Haugen Bill – Govt purchases surplus crops to help raise the price of farm products – Congress passed the bill twice but both times vetoed by President Coolidge

U.S. and the World Isolationism – Harding recommitted to staying out of European affairs and promoting peace through agreements with individual countries The Washington Conference (1921) – Major countries of the world agreed to reduce the size of their naval arms The Dawes Plan (1924) – U.S. plan to get England/France to repay the war loans by loaning $ to Germany who then paid England and France who then used the $ to repay U.S. Kellogg-Briand Pact (1928) – Major countries of the world agreed to make war illegal