The Business of America The Roaring 20’s ( ) Chapter 25 Section 1

Essential Questions: What is the purpose of government? YOURIs the U.S. Government intervening in YOUR life now? How? Is that right?

Warren G. Harding Won the 1920 Presidential Election Return to Normalcy Prosperity at Home Peace AbroadPromised America a “Return to Normalcy,” & “Prosperity at Home & Peace Abroad.” What Did He Mean?

1920’s Booming Economy EconomicallyHarding Wanted to Help Americans Economically $$$ Lowered Taxes: –Americans Have More $$$ to Spend Higher Tariffs On Foreign Goods: –Domestic (USA) Goods Cheaper

Foreign vs. Domestic

Harding’s Economic Philosophy “There should be less government in business and more business in government.” What did he mean?

The Teapot Dome Scandal Harding Chose His Friends From Ohio to be in His Cabinet (Advisors) Ohio GangThe “Ohio Gang” Many of Were Corrupt! –Used Their Positions in Government to Make $$$

The “Ohio Gang” Harding’s Cabinet “Friends” Took Illegal Bribes to Drill for Oil Oil Companies Had Found Oil in Teapot Dome, Wyoming It was Government Preserved Land “Ohio Gang” Gave Oil Companies the Right to Drill (Against the Law)

Presidential Scandals

Harding Dies: VP Calvin Coolidge Becomes President (1923) During Summer of 1923, Harding Went on a Campaign Tour Learns of Teapot Dome Scandal While On Tour Dies a Few Days Later Vice President Calvin Coolidge is Sworn in as President

Calvin Coolidge Calvin Coolidge Cleaned Up the Teapot Dome Scandal Ran for Election in 1924 & Won! Laissez- FaireBelieved in Laissez- Faire Economics

Laissez Faire Economics “Laissez Faire” Means “Hands-Off” in French Coolidge Believed: Business, if left unregulated by the government, would act in a way that would benefit the nation.” –“Business, if left unregulated by the government, would act in a way that would benefit the nation.” Coolidge Also Believed: The Chief Business of the American People is Business.” –“The Chief Business of the American People is Business.”

Laissez Faire Economics NOTCoolidge Also Believed Government Should NOT Help Citizens with Social or Economic Problems Not Government’s Problem! Coolidge Refused to Help Struggling Farmers in the 1920’s

Problems of the Farmers MajorIn the 1920’s, Farmers Had Major Problems New Machinery = More Production Supply & Demand: –U.S. Farmers Made More Food = Prices $$$ Dropped –Farmers Went Broke

Congress Tried to Help Congress Passed a Law to Buy Farmers Extra Food: –Buy the Extra Food, Less Supply –Prices Would Rise VetoedCoolidge Vetoed the Bill: –Laissez Faire! Coolidge Feared Citizens Would Rely on the Government to Always Solve Problems!

Isolationism Harding & Coolidge Were Isolationists Isolationism OUTIsolationism – U.S. Would Stay Neutral, OUT of the World’s Problems Kellogg-Briand PactCoolidge Signed the Kellogg-Briand Pact: –15 Countries Agreed Never to Fight Each Other Unless in Self-Defense

“Roaring” Economy of the 1920’s Economy was “Booming” in the 1920’s: –No Government Interference Annual Income Went Up 35%: –$512 to $722 If You Were Making $50k & Got a 35% Increase, What Would Your Salary Be? YOUWhat Would YOU Spend it On?

Business Cycle (Booms) People Buy More Products & Invest in Companies More MORECompanies Get MORE Investment Capital, Hire More Workers, Make More Goods, Sell More More Workers = More Paychecks = More Spending! Business Grows!

More $$$ = More Spending! Americans Had More $$$ to Spend on Leisure Activities & Goods More Spending = Business Make More $$$ = Hire More Workers = More Spending = Etc...

Henry Ford WhyDetermined to Make a Car Everyone Can Afford! Why? Who Makes More $$$? Honda or Ferrari? 1 st Car Ever was the Model T Cost $335

The Assembly Line Speeds Up Production More Goods Produced Lowers the Price 1 Model T was Produced Every 10 Seconds Tough on Workers! Standard of Living Goes Up for All! –More Americans Can Afford More Goods!

“I Love Lucy”

Installment Buying Buying a Product on Credit (Just Like a Credit Card) Pay Off in Payments Once a Month More Americans During the 1920’s Started Buying Products on Credit My Bose Stereo/Car/ House/Etc…

Life Made Easier Cheap Petroleum/Fuel & Electricity were Widely Used Powered New Inventions Vacuum Cleaners, Sewing Machines, Dishwashers, Washer & Dryers, Toasters, Fans, Etc… More Americans Bought More New Products

Beginning of the Air Age Planes Were Now Used for Crop Dusting, Stunt Shows & Training Pilots The Post Office Began Mail Service in 1918 Pan American Airlines was the 1 st Ever Passenger Airliner (1927)

Charles Lindbergh & Amelia Earhardt 1 st ManCharles Lindbergh Was the 1 st Man Ever to Fly Across the Atlantic Ocean in st WomanAmelia Earhardt Was the 1 st Woman Ever to Fly Across the Atlantic Ocean in 1928

Essential Questions: What is the purpose of government? Is the U.S. Government intervening in YOUR life now? How? Is that right?