Chapter 21 U.S. History 2

The Jazz Age 20.1 Presidential Politics 21.2 A Growing Economy 21.3 The Policies of Prosperity

20.1 Presidential Politics The Harding Administration The Coolidge Administration Calvin Coolidge

The Harding Administration In 1920, Warren G. Harding won the presidency and promised a return to normalcy, or a “normal” life after the war. Harding gave most cabinet appointments to his old poker-playing friends. They became known as the Ohio Gang.

The Harding Administration Some members abused their positions to sell jobs, pardons, and immunity from prosecution. Before the public learned of the scandals, Harding fell ill and died in 1923. Harding’s funeral procession

The Harding Administration Harding’s secretary of the interior, Albert B. Fall, secretly allowed private interests to lease lands containing U.S. Navy oil reserves at Teapot Dome, Wyoming. He received bribes totaling over $300,000. The Teapot Dome scandal resulted in Fall being the first cabinet officer ever to go to prison. Albert B. Fall

The Harding Administration Another scandal involved Attorney General Harry Daugherty. He refused to turn over files and bank records for a German-owned American company. Bribe money ended up in a bank account controlled by Daugherty. He refused to testify under oath, claiming immunity, or freedom from prosecution.

Harding and Coolidge

The Harding Administration He claimed that he had confidential dealings with the president. Vice President Calvin Coolidge became president after Harding’s death. Coolidge demanded Daugherty’s resignation. Calvin Coolidge takes oath of office

Last known photograph of Harding

The Coolidge Administration Coolidge distanced himself from the Harding administration. He focused on prosperity through business leadership with little government intervention. He easily won the Republican Party’s nomination for president in 1924.

The Coolidge Administration The Democratic Party’s candidate was John W. Davis. A new Progressive Party nominated Robert M. La Follette as their candidate. Coolidge won the 1924 election with more than half the popular vote. Coolidge promised to give the U.S. the normalcy that Harding had not. Calvin Coolidge

21.2 A Growing Economy The Rise of New Industries The Consumer Society The Farm Crisis Returns

The Rise of New Industries  In the 1920s, Americans enjoyed a new standard of living with higher wages and shorter work days. Mass production, or large-scale product manufacturing usually done by machinery, increased the supply of goods and decreased costs. Greater productivity led to the emergence of new industries.

The Rise of New Industries  Henry Ford developed the assembly line by dividing up tasks into simple tasks that unskilled workers could perform. This greatly improved production. His Model T sold for $850 the first year but later dropped to $490 after being mass-produced. By 1924, the Model T was selling for just $295.

Technology and History 2 Click the mouse button or press the Space Bar to display the information. Technology and History 2

The Rise of New Industries He increased workers’ wages and cut the work hours to gain workers’ loyalty. Henry Ford changed American life with his affordable automobiles. Small businesses such as garages and gas stations opened. The petroleum industry expanded tremendously.

The Rise of New Industries People could live farther away from work–creating the auto commuter. By 1919, the Post Office used planes and trains to improve efficiency. In 1927, Charles Lindbergh took a transatlantic solo flight.

Replica of the Spirit of St. Louis

The Rise of New Industries Americans began supporting the commercial flight. By the end of 1928, 48 airlines were serving 355 American cities.

The Rise of New Industries In 1926, the National Broadcasting Company (NBC) established a permanent network of radio stations to distribute daily programming. In 1928, the Columbia Broadcasting System (CBS) set up coast-to-coast stations to compete with NBC.

The Consumer Society Higher wages and shorter workdays led to an economic boom and a consumer society. Americans became confident that they could pay back their debt at a later time. Advertising convinced Americans that they needed new products.

The Consumer Society Advertisement for Ford

The Consumer Society By the early 1920s, many businesses hired professional managers and engineers. The large number of managers expanded the size of the middle class.

The Consumer Society In the 1920s, unions lost influence and membership. Employers promoted an open shop, a workplace where employees did not have to join a union. Welfare capitalism, where employees were able to purchase stock, participate in profit sharing, and receive benefits, made unions seem unnecessary.

The Farm Crisis Returns American farmers did not share in the prosperity of the 1920s. Prices dropped dramatically while the cost to improve farmers’ technology increased. During wartime, farmers produced more for food supplies needed in Europe.

The Farm Crisis Returns Farmers borrowed money at inflated prices to buy new land and machinery to raise more crops. Farmers prospered during the war. After Congress raised tariffs, farmers could no longer sell products overseas.

The Farm Crisis Returns Coolidge twice vetoed a bill to aid the farmers, fearing it would only make the situation worse. American farmers remained in a recession throughout the 1920s.

21.3 The Policies of Prosperity Promoting Prosperity Trade and Arms Control

Promoting Prosperity Harding’s secretary of treasury Andrew Mellon reduced government spending. The federal debt was reduced by $7 billion between 1921 and 1929.

Promoting Prosperity He applied the idea of supply-side economics to reduce taxes. This idea suggested that lower taxes would allow businesses and consumers to spend and invest their extra money, resulting in economic growth. In the end, the government would collect more taxes at a lower rate.

Promoting Prosperity Secretary of Commerce Herbert Hoover attempted to balance government regulation with cooperative individualism.

Promoting Prosperity Manufacturers and distributors were asked to form their own trade associations and share information with the federal government’s Bureau of Standards.

Promoting Prosperity Hoover felt this would reduce waste and costs and lead to economic stability.

Trade and Arms Control By the 1920s, the U.S. United States was the dominant economic power in the world. Allies owed the U.S. billions of dollars in war debts. The U.S. national income was far greater than Britain, Germany, France, and Japan combined.

Trade and Arms Control Many favored isolationism rather than involvement in international politics and issues. The U.S. was too powerful and interconnected in international affairs to remain isolated. Other countries felt the U.S. should help with the war’s financial debt.

Trade and Arms Control The U.S. disagreed, arguing that the Allies had gained new territory and received reparations. Reparations were huge cash payments that Germany paid as punishment for starting the war. Reparations crippled the German economy.

Trade and Arms Control Charles G. Dawes, an American diplomat and banker, proposed the Dawes Plan. American banks would make loans to Germany so it could pay its reparation payments. France and Britain agreed to accept less reparations and pay more on their war debts.

Trade and Arms Control The Washington Conference held in 1921 invited countries to discuss the ongoing post-war naval arms race. Secretary of State Charles Evans Hughes proposed a 10-year moratorium, or pause, on the construction of major new warships. The conference did nothing to limit land forces.

Trade and Arms Control Japan was required to keep a smaller navy than the U.S. and Britain. The Kellogg-Briand Pact was a treaty that outlawed war. Participating countries agreed to stop war and settle all disputes peacefully.

Trade and Arms Control Eventually, 62 nations ratified it. The treaty was considered a victory for peace but had no binding force.

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