1. Coolidge, Harding, Effects of WWI
Mr. Williams
10th Grade U.S. History

3. Economic Philosophy Conservative: Laissez-Faire
Market will take care of itself, not the governments responsibility
Tax cuts for upper-income Americans and business
Individuals would invest their tax savings
Business would use this to expand and hire new workers

7. “America’s present need is not heroics, but healing; not nostrums, but normalcy; not revolution, but restoration; not agitation, but adjustment; not surgery, but serenity; not the dramatic, but the dispassionate; not experiment, but equipoise; not submergence in internationality, but sustainment in triumphant nationality.” –Warren G.Harding 1920

11. Teapot Dome Scandal
Ohio Gang: Lower-Level government agents that were convicted of taking bribes
Secretary of Interior Albert Fall accepted bribes in return for allowing oil companies to drill federal oil reserves in Wyoming

13. Calvin Coolidge Became President after Harding’s Death in 1923
“Those who build a factory build a temple of worship. Those who work in the factory, worship there.”

14. Government took away resources business could use
Lowering taxes, and reducing the federal budget which did not increase from
Vetoed a bill for a bonus for WWI veterans, did not want to use Govt. to help farmers

15. What about Farmers? Fordney-McCumber Tariff
Raising cost of foreign-grown products
Helped in short term, but also hurt European market

17. Immediate Effects of WWI
Nation desired “Normalcy”
U.S. becomes dominant economic power in the world
European countries unable to pay war debts
Desire to avoid future war

18. “My best judgment of America’s needs is to steady down, to get squarely on our feet, to make sure of the right path. Let’s get out of the fevered delirium of war, with the hallucination that all the money in the world is to be made in the madness of war and the wildness of its aftermath. Let us stop to consider that tranquility at home is more precious than peace abroad, and that both our good fortune and our eminence are dependent on the normal forward stride of all the American people.” –Warren G. Harding

20. Long-Term Effects Harding and Coolidge elected
Fordney-McCumber Tariff: European market unable to pay war debts
U.S. becomes “banker” to Europe
U.S. sponsors Naval Conference and signs Kellogg-Briand Pact

22. Washington Naval Conference
Arms Race: competing nations build more and more weapons in order to avoid one nation gaining a clear advantage
To solve this, Conference was called in 1921

23. Major naval powers of the world were invited
Nations agreed to cut back on the sizes of their navies
Also agreed to plans to avoid competition over China

25. Kellogg-Briand Pact More than 60 nations signed this agreement
Renounced war as an instrument of national policy
Held together only by promise

26. “The High Contracting Parties solemnly declare in the names of their respective peoples that they condemn recourse to war for the solution of international controversies, and renounce it, as an instrument of national policy in their relations with one another.”

28. War Debt Europeans Countries struggle to rebuild after WWI
Countries in turn demanded that Germany pay back their reparations
Inflation/Unemployment
Unable to pay these back, so U.S. began to loan Germany money