1. The 1920’s
The Jazz age

2. Overview of the 1920’s
In the 1920’s, new technology helped to create a booming economy with rising stock prices and increased consumer spending.
In 1929 economic problems triggered the Great Depression.
The Great Depression led to more federal government involvement in the economy and new programs were created.
In the 1920’s, technology spurred economic growth and cultural change.
Not everyone approved of the cultural change –”New Morality”
Young people adopted new styles of dress, listened to jazz music, and had more independence than previous generations.

3. The Politics of the 1920’s
Warren G. Harding’s Presidency suffered from corruption & scandals. The man who took over after Harding (Calvin Coolidge) worked hard to restore American’s faith in government and build the economy.
The Harding Administration
Warren Harding (Ohio) had a long political career in that state from 1898 to 1920.
Won election for President in 1920 (“return to normalcy”)
”Good "Harding Appointees
Sec. of State– Charles Evan Hughes (promoted disarmament after WWI)
Sec. of Commerce– Herbert Hoover (promoted radio & aviation industries, new markets for US products
Sec. of Treasury– Andrew Mellon (promoted supply-side economics)
All three men would play a major role in the economic prosperity and peace of the 1920’s

5. Harding’s ‘Ohio Gang” and Scandals
Many of Harding’s OTHER APPOINTMENTS were corrupt. He gave cabinet posts to friends and politicians from Ohio (The Ohio Gang).
Ohio Gang Appointees:
Attorney-General-- Harry Daugherty (former campaign manager)
Chairman of the Federal Reserve-– Daniel Crissinger (childhood friend)
Head of the Veteran’s Bureau-- Col. Charles Forbes
The Ohio Gang Corruption
Some used their positions to sale jobs, pardons, & protection from prosecution.
Charles Forbes sold scarce medical supplies from Veteran’s hospitals and kept the money (cost tax payers $250 million).
The Teapot Dome Scandal (1922)- Sec. of Interior Albert Fall allowed private businesses to lease land in Teapot Dome WY. Containing US oil reserves and received $300,000 from these businesses.
Albert Fall—1st Cabinet officer in US history to go to prison.
** Harding died of heart attack while visiting the West in 1923 as news of the Forbes Scandal broke--- Calvin Coolidge becomes new President.

6. President Coolidge Cleans House
Coolidge was very different from Harding. He did not speak much (knew 5 languages). Earned the nickname ‘Silent Cal”.
Coolidge distanced himself from the Harding appointees
Kept the ’Good” Harding Appointees (Hughes, Mellon, Hoover).
Coolidge’s philosophy – “What’s GOOD for Business is good for the American People”.
Won Presidency in 1924 “Keep Cool with Coolidge”.
Policies of Prosperity
Sec. of Treasury Andrew Mellon played a major role in the prosperity of the 1920’s.
He had three goals: balance the US budget, reduce government debt, and cut taxes.
Pushed ‘Supply-side’ economics– cut taxes to increase consumer spending and investments and government revenues will grow.
Sec. of Commerce– Herbert Hoover– also promoted economic growth by looking for new markets for US products, helping the airplane & radio industries grow.

7. Trade and Arms Control
In the 1920’s, the US tried to promote economic peace & stability through economic policies and arms reduction agreements.
Changes from WWI:
The US came out of WWI owed $10 Billion by the Allies (Britain, France).
The US was the dominant economic power in the world in the 1920’s.
The Myth of US Isolationism
Most Americans after WWI were tired of being involved in war and politics of Europe.
Most Americans favored “Isolationism” —idea that the US will be safer & more prosperous if we stay out of world affairs.
It appeared to many people that the US was isolationist: We did not join League of Nations, Did not ratify Treaty of Versailles.
America was really too interconnected with other countries to be truly Isolationist.

9. America Supported Economic Prosperity in the World
After WWI, America’s allies could not make payments on their war debts due partly to US tariffs which hurt FOREIGN sales of products in the US.
The allies (Britain & France) were getting payments from Germany (war reparations) but, these payments were killing the German economy.
European economies had to be strong to buy US products.
The Dawes Plan (1924)
American diplomat Charles Dawes worked out an agreement with Britain, France, & Germany.
American banks would make loans to Germany to make payments to Britain & France.
Britain & France agreed to accept less reparations from Germany and pay back more to the US.
* Plan wasn’t successful due to Great Depression around the world starting in 1929.

10. America Worked to Limit An Arms Build UP AFTER WWI
After WWI, the major powers were involved in an arms race (navy build up).
The Washington Conference (1921)
The US invited 8 major powers to discuss disarmament.
The US led the way– Hughes proposed a 10 year halt on building new warships and to destroy old warships.
The Five Power Treaty
Britain, France, Italy, Japan, & US agree to Hughes proposal.
Problem:
Did not limit ground forces
Angered Japan who were required to have a smaller navy than the US & Britain.
The Kellogg-Briand Pact
Many people believed written agreements could end war.
The US & France proposed a treaty that would outlaw war.
Signed by the US & 14 nations-- (1928)
Why DID it fail to work? It allowed ”DEFENSIVE WARS”.
** Dawes Plan & Kellogg-Briand—were most notable foreign policy achievements for Coolidge.

11. A Growing US Economy
1920’s economic growth

12. The Rise of New Industry in the US
Americans experienced a rising standard of living in the 1920’s due to new industries, technology, and government policies.
Earnings rose 23% from
Work hours decreased (more leisure time for fun).
These changes because mass production done with machines increased supply and reduced costs—workers could be paid more and goods cost less.
The Moving Assembly Line—An Automobile Industry
the 1st “moving assembly line” was used by Henry Ford to produce autos (Model T)
Divided operations into simple tasks & cut unnecessary motion to a minimum.
Effect– reduced the time it took to roll car out of factory (1913—12 hours to make a car, 1914– 93 minutes; 1925—every 10 seconds).
Reduced the price of a Ford from $850 in 1908 to $294 by 1924.
Imitators– GM & Chrysler began to compete with Ford.
New businesses related to cars opened: oil, rubber, steel, gas

13. The Impact of the Auto Working for Ford
Ford Increased worker wages in 1914 to $5/ day
Ford decreased work hours to 8 hour shifts
Why? To build worker loyalty & undercut unions.
Working for Ford came with Cost
Ford created the “Sociological Department” which set requirements for his workers.
It was forbidden to rent room in a worker's home to non-family members.
Investigators visited worker’s homes to verify they were meeting requirements.
The Social Impact of the AUTO
Eased isolation of rural life for Americans
Auto commuters appeared
Allowed the young to get out of watchful eyes of parents

14. Birth of the Airline Industry
The Wright Brothers conducted the 1st powered flight carrying a passenger at Kitty Hawk, NC in 1903.
Glenn Curtis- invented “ailerons” which are surfaces attached to plane wings tilted to steer the plane--still used today.
Curtis’ company built planes for the US during WWI
1918- US Postmaster General hired pilots to fly mail from D.C. to NY.
1919- US Postal Service expanded airmail across the US.
1925- The Kelly Act: authorized US postal service to contract with private air pilots to deliver air mail.
1926- The Air Commerce Act– Congress authorized money to build airports.
1927- Charles Lindberg flew the 1st transatlantic solo flight in world history.
The possibilities of commercial aviation were now limitless.
1828– there were 48 airlines serving 355 US cities.

15. The Radio Industry
In 1913, Edwin Armstrong invented a special circuit that allowed sound to be transmitted on long-range radio.
1920—Westinghouse Co. broadcast Warren Harding’s presidential victory via radio—one of the 1st public radio broadcast EVER.
1926- National Broadcast Co. (NBC)- set up radio station networks.
radio stations in the US.
Sales of radio equipment increased increased from $12.2 million (1921) to $842.5 million by
1929- Columbia Broadcasting System (CBS) – set up coast to coast radio stations to rival NBC.
NBC & CBS sold radio ads; programing included singers, actors, musicians, and vaudeville (a type of variety act).
1928 Election- 1st time radio is used for presidential campaigns.

16. Consumer Goods Buying
In the 1920’s, Americans had more disposable income than previous generations. This led to new goods coming onto the market.
Electric razors, facial tissue (Kleenex), frozen foods, home hair color kits.
US Companies made products for the home:
Indoor plumbing became more common—but, not everywhere.
American’s concern for hygiene led to household cleaning products.
Products advertised to save time: Electric iron, vacuum cleaners, washing machines, refrigerators.
Fashion & Youth: mouthwash, cosmetics, perfumes.
Americans Began to Use Credit to Purchase Consumer Goods
Most Americans BEFORE 1920 thought debt was shameful.
Attitudes about debt changed in the 1920’s—people realized they could pay their debts over time using CREDIT (‘Buy Now, Pay Later”).
75% of radios bought on credit
60% of autos bought on credit
In the 1920’s, Americans began to amass debt.

17. Mass Advertising The Managerial Revolution
US Businesses began to use mass advertising to sell products using a variety of methods.
Ads Appealing to Modern Era Ideas
Progress, convenience, leisure, success, and style
An ad for spaghetti—”Just one thing to do and its ready to serve”.
Ads Preyed on Fears & anxieties
Weight management devices etc.
The Managerial Revolution
By the 1920’s, American businesses began to create modern organizational structures.
Companies were split into “DIVISIONS” with different functions with MANAGERS running them (Sales, Marketing, Accounting).
The Professional Manager was a new career
Increase in the number of managers led to the Middle Class growing

18. Welfare Capitalism Uneven Prosperity
Industrial workers also had more disposable income due to rising wages and benefits provided by companies in the 1920’s.
Welfare Capitalism-- stock, insurance, pensions provided by companies to workers to increase worker loyalty & reduce the need for unions.
The Decline in Union Membership
Benefits provided by employers made unions unnecessary to many workers.
Employers began to push for the OPEN SHOP (workplace where workers are not required to join unions).
Uneven Prosperity
Not everyone shared in the economic boom of the 1920’s.
African-Americans & women were replaced in the workforce when US servicemen came home.
Native Americans- lived on reservations with no work.

19. The Farm Crisis (“The Quiet Depression”)
Farmers in the South and West did not share in the prosperity of the 1920’s.
Earned less than 1/3 of what other US workers made.
Farm technology increased supply but, prices for crops went down.
Why were Farmers Struggling?
After WWI, farm crop demand went down & competition from foreign farmers drove down prices of crops.
Congress- raised tariffs—so foreign countries put tariffs on our farm crops.
Congress Tries to Help Farmers
Twice Congress tried to pass laws to help but, President Coolidge vetoed the bills twice.