W ARM - UP List five (5) things you learned about the American economy in the 1920s

P OLITICS OF THE 1920 S

H ARDING Republicans wanted candidate they could dominate and won by landslide “Return to Normalcy”—strong pro- business Teapot Dome Scandal (oil) Died of a heart attack 1923

C OOLIDGE Vice president under Harding; took over presidency when Harding died Personified moral rectitude Democratic party divided over Prohibition, immigration restriction and power of KKK “The chief business of the American people is business” Creation of wealth benefits the whole nation

H OOVER Republican candidate in 1928 election Embodied the new managerial and technological elite President when US was struck by depression in 1929 Claiming credit for prosperity of 1920s, Republicans would not escape blame for depression

G OVERNMENT & B USINESS Republican presidents in 1920s generally favored business High tariff policies Andrew Mellon Reduced rates for corporate and personal income tax Created list of tax loopholes for businesses Cutbacks: Federal Trade Commission (FTC) Supposed to regulate big business but did less and less Herbert Hoover Price fixing/government responsible for helping businesses profit

A CTIVITY : Teapot Dome Scandal