Politics and Business in the 1920s. Republican Control Three Republican presidents in the decade Last Progressive Rep. T.R. died in 1919 Conservatives.

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Presentation transcript:

Politics and Business in the 1920s

Republican Control Three Republican presidents in the decade Last Progressive Rep. T.R. died in 1919 Conservatives took control Didn’t remove regulatory agencies, just staffed them with pro-business appointees

Warren G. Harding Well-liked, poker buddy, compromise choice Good cabinet – Former Supreme Ct. justice to State – Herbert Hoover to Commerce – Andrew Mellon to Treasury Appointed ex-pres. Taft to Chief Justice Pardoned Eugene V. Debs

Harding’s Policies Republican congress’ pen Reduction of income tax Increase in Tariffs Establishment of the Bureau of the Budget

Harding’s Scandals and Death Teapot Dome Scandal – Sec. of Interior had accepted bribes for granting oil leases on gov’t land Attorney General took bribes for agreeing not to prosecute some suspects Two alleged affairs Harding died in 1923

Calvin Coolidge “Silent Cal” “The chief business of America is business” Wins 1924 election easily – Progressive Robert La Follette wins 5 million votes Little accomplished – Cut gov’t spending – No bonuses for WWI vets – No help for farmers

Hoover, Smith, and the Election of 1928 Hoover – Self-made millionaire – Sec. of Commerce – Served 3 presidents – WWI Food programme Alfred E. Smith – Catholic – Opposed Prohibition

Campaign Coolidge Prosperity “In America today, we are nearer a final triumph over poverty than is any other land. “ Hoover wins in landslide Broke “solid south”

Econ Break

Economic Development Short recession, lengthy prosperity, crash Unemployment under 4 percent Indoor plumbing, central heating Real income actually increased Poverty rates as high as 40% – $1500/year (18000 today)

Cause of Prosperity Productivity – Scientific Management – Henry Ford – assembly line Energy Technologies – Use of oil and electricity – Powered factories and automobiles Government policy – Corporate tax cuts – No enforcement of anti-trust laws

Impact of the Automobile Ford Model A

Route 66

Urban Sprawl

Electrical Conveniences

Modern Advertising

Buying on the Installment Plan

Increased Production

Farm Problems Prices dropped after WWI No price threshold Productivity Increases

Labor Problems Wages rose Union membership declined 20% Welfare Capitalism Police, militia, mobs Strikes failed in PA, WV, and KY Courts nullified labor laws