Normalcy and Good Times

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Presentation transcript:

Normalcy and Good Times The Policies of Prosperity

Learning Targets At the end of this lesson you will: Explain the beliefs of Andrew Mellon towards government. Understand how the government can make more money while lowering taxes. Know what “supply-side-economics” refers to. Know how many Americans wanted to avoid future wars. Discuss the arms races after the war and the treaties meant to end them.

Promoting Prosperity -The Mellon Program -Andrew Mellon served as secretary of treasury in three successive Republican presidencies in the 1920’s -Mellon firmly believed that the government should apply business principles to its operations. -As the economy grew, Americans would earn more money, and the government would actually collect more taxes at a lower rate than it would if it kept tax rates high. -This idea is known today as supply-side economics.

Trade and Arms Control -Isolationism -President Harding declared American involvement in the League of Nations “deceased”. -Most Americans wanted to avoid future wars by avoiding involvement in European affairs. -There were too many other things such as economics (trade), politics (types of government), etc… that made isolationism impossible to continue economic growth.

Trade and Arms Control -The Washington Conference -Despite severe economic hardship due to having to pay war reparations, Britain, France, and Germany were involved in an arms race. -To help halt this arms race, the United States invited representatives from eight major countries to Washington DC to discuss disarmament. -Many treaties were passed, but none had any type of binding force to keep countries out of war.

Review Questions What were the beliefs of Andrew Mellon towards government? How can the government can make more money while lowering taxes? What is “supply-side-economics”? How did many Americans wanted to avoid future wars? Discuss the arms races after the war and the treaties meant to end them.