Bell Ringer Should businesses be allowed to do whatever they want, if it improves the economy? Why or why not?

Buying the 1920s Green Bay Packers Stock-$250 Per Share Helicopter-$700,000 Hair Products-$300 Season Seats to the Angels-$10,692 for Four in Club Level Emerson Mini Fridge-$270 Surface Pro 2-$1,100

The Roaring Twenties

The Roaring Twenties The 1920s gains the nickname of the Roaring 20s because of the economic boom that occurred during the time. 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

Harding’s Presidency 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.

A Return to “Normalcy” 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.

Teapot Dome Scandal 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

The Republican “Old Guard” Returns Under Harding’s administration, business boomed, largely to the return to laissez faire economics and a setting aside 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.

Forging Peace The Washington Disarmament Conference was held to discuss the limitation on weapons to be held by each country, in hopes of preventing future wars, but had no method of enforcement. Kellogg-Briand Pact: Outlawed war; nice idea, not gonna happen.

“Silent Cal” Harding died of pneumonia Coolidge was calm, shy, moral, boring, and quiet Was even more pro-business than Harding Meep.

Stay “Cool” “The chief business of the American people is business.” 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 “The chief business of the American people is business.”

Changes to Business 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 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.

The Dawes Plan Charles Dawes, an American banker and current VP, gave a $200 million loan from US banks would help stabilize the German economy It set a more realistic repayment plan than the German reparations plan under the Treaty of Versailles They could pay back Britain and France, who could then repay the US

Election of 1928 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.

Master Mellon 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.

Hoover’s Administration Cooperative individualism: A policy of encouraging manufacturers and distributors to form their own organizations and volunteer information to the federal government in an effort to stimulate the economy Centered on eliminating waste and increasing efficiency in business and industry. The US retreated into isolationism after WWI, hoping to avoid further foreign entanglements. It also left them without allies.

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