The Roaring Twenties

Woodrow Wilson Dates in Office: 1913-1921 Nickname: The Professor Political Party: Democrat Major Events: 17th Amendment ratified Federal Reserve Act Clayton Anti-Trust Act World War I 14 Points and Treaty of Versailles 18th Amendment ratified 19th Amendment ratified

The Roaring Twenties Economic boom Effects of WWI Improved technology Increased consumer culture World’s highest standard of living Wages soar 22% Work hours/days decreased The 1920s gains the nickname of the Roaring 20s because of the economic boom that occurred during the time USA the only nation to come out of WWI with any money left Improved technology during the war improves consumer culture World’s highest standard of living The average American wage soared 22% Work hours and days decreased, leaving more time for entertainment Many Americans were getting a vacation for the very first time.

Normalcy and Good Times Politics of the Roaring Twenties Normalcy and Good Times

WARREN G. HARDING’S ADMINISTRATION Common man’s President Looked the part, but not-so-smart Return to “normalcy” The Ohio Gang Unqualified Corrupt He was tall and handsome, and looked the part of President Was gullible and of average intelligence Harding was chosen because he was “folksy” – a man of the people, as a contrast to Wilson’s elitist professorial persona. Harding promoted a return to “normalcy” after the war. The Ohio Gang: Friends and political allies Harding appointed to high government positions from his home state of Ohio. Many members were corrupt Sold government positions, gave criminal pardons, laundered money, etc.

The Republican Renaissance New Republican ideals Return to laissez faire economics Disregard of anti-trust laws Labor movement struggles Fordney-McCumber Tariff Good for domestic business Bad for European business Under Harding’s administration, business boomed, largely to the return to laissez faire economics and a disregard of Anti-Trust laws The labor movement struggled badly, causing strikes, riots, and distrust Fordney-McCumber Tariff raised rates to 38%, helping domestic business, but hurting European countries that needed to export to the US to pay back their WWI debts to us.

Teapot Dome Scandal Massive oil reserves found at Teapot Dome, Wyoming Sec. of the Interior Albert B. Fall Bribes Evidence tampering Jury tampering Harding unaffected Uninvolved or unaware Died of pneumonia Harding’s gullibility allowed for dishonest men to take advantage of his administration Sec. of Interior Albert B. Fall was to manage natural resources, and when oil was found near Teapot Dome, WY, he had the land secretly placed under his control, accepting bribes for oil drilling rights. Word leaked out and the case dragged on for six years, adding jury and evidence tampering to the scandal

Warren G. Harding Dates in Office: 1921-1923 Nickname: Winnie Political Party: Republican Major Events: Emergency Quota Act Teapot Dome Scandal Washington Disarmament Conference

Coolidge’s Administration “Silent Cal” Runs for his own presidency (1924) “Stay cool with Coolidge” Conservative, isolationist, pro-business “The chief business of the American people is business.” Harding died of pneumonia Coolidge was calm, shy, moral, boring, and quiet Was even more pro-business than Harding Coolidge was reelected as a conservative, dedicated to isolationism, business, and war debt repayment First presidential election where women were allowed to vote in all states

Changes to Business Modern organizational structure Welfare capitalism Division of labor designed after factory labor Managers vs. executives Growth of middle class Welfare capitalism Labor struggles Modern organizational structures developed during this time Divisions were created, e.g. sales, marketing, accounting, etc. Managers freed executives from dealing with day-to-day functions, allowing them to focus on long-range plans. Helped the middle class grow Welfare capitalism: Companies allow workers to buy stock, participate in profit sharing, and receive pensions and medical benefits. Unionization lost popularity – times were good, so why join a union?

Tough Times on the Farm Agricultural boom during WWI Postwar slump Demand Technology Credit Postwar slump Surplus Debt McNary-Haugen Bill Congress purchase surplus, then sell overseas Vetoed 2xs by Coolidge During WWI, famers enjoyed a boom with increased demand for agricultural goods After the war, demand dropped, and new technologies made produced crops faster, thus dropping prices even further. McNary-Haugen Bill: Congress tried to keep agriculture prices high by buying surpluses and then selling them to other nations. It was vetoed twice by Coolidge.

Calvin Coolidge Dates in Office: 1923 - 1929 Nickname: Silent Cal Political Party: Republican Major Events: Dawes Plan Immigration Act of 1924 Charles Lindbergh make his historic transatlantic flight Kellogg-Briand Pact Scopes Trial

Election of 1928 Herbert Hoover (R) Gov. Alfred E. Smith (D) Progressive, anti-Prohibition leader Catholic Success of Food Admin. in WWI “Rugged individualism” Herbert Hoover became the nominee for the Republicans, promoting “rugged individualism” - America had been made by strong, self-sufficient individuals Democrats nominated NY Governor Alfred E. Smith, a well-liked man, but he was Catholic, which was the death blow for the South. With the popularity of the radio, Hoover had the advantage over Smith’s grating New York accent.

Mo’ Money, Mo’ Problems Andrew Mellon SoT; believed government should operate like a business Goals: balance the budget, reduce government debt, and cut taxes. Supply-side/”trickle-down” economics Andrew Mellon: Secretary of Treasury; believed government should operate like a business Goals: balance the budget, reduce government debt, and cut taxes. Supply-side/“Trickle-down” economics: Theory that lower taxes (especially for the wealthy) will boost the economy as businesses and individuals invest their money, thereby creating a higher tax revenue. The US retreated into isolationism after WWI, hoping to avoid further foreign entanglements. It also left them without allies.