1. Normalcy and Good Times
Unit 9 cont.

2. Lecture II: Politics and Economics of the 1920s
The Warren Harding Administration ( )
Harding promised Americans a “return to normalcy”
1. The Ohio Gang
Harding appointed corrupt friends to government positions
The Veterans Scandal-Charles Forbes sold medical supplies
meant for veterans hospitals and pocketed the money
The Teapot Dome Scandal-Albert Fall excepted bribes
from oil companies to lease public land that contained
U.S. oil reserves
2. Harding’s Death
August 1923 Harding died from a heart attack in San Francisco, CA
V.P. Calvin Coolidge was sworn in as President and
worked to restore the integrity of the Presidency
and increase prosperity.
Coolidge was re-elected in 1924

3. B. The Rise of New Industries
1. Mass Production and the Assembly Line
Large-scale manufacturing decreased costs for businesses and increased supply of products
Henry Ford’s assembly line became the model of efficiency in the 1920s
1913-one automobile every 93 minutes
1925-one automobile every 10 seconds
Led to a decrease in price of vehicles
1908 Model T = $850
1924 Model T = $294

4. C. Consumerism
1. Consumer Goods Industry
More income = greater demand for new products
Appliances and personal hygiene products
2. Easy Credit
Installment plans allowed Americans to go into debt to purchase products
3. Mass Advertising
Advertising industry boomed
Advertisers used persuasive messages and preyed on consumers fears
4. Welfare Capitalism
Companies allowed workers to buy stock, participate in profit sharing and provided employees with medical care and pensions
Encouraged loyalty to employer and increased productivity
"Why should life be work, when we all can borrow. Let's think only of today, and not worry about tomorrow."--Zelda Fitzgerald

5. 1920s Advertising

9. D. Helping Farmers in the 1920s 1. Agricultural Depression
Farmers overextended themselves buying land and supplies
Demand decreased for agricultural goods after WWI
Fordney-McCumber Tariff further decreased demand for agriculture goods in Europe
Surplus crops led to a drop in prices
2. McNary Haugen Bill
Called on the government to purchase surplus crops to help raise the price of farm products
Congress passed the bill twice and both times it was vetoed by President Coolidge

10. E. Promoting Prosperity 1. The Andrew Mellon Program
Goal #1 - Balance the budget
Goal #2 - Reduce government debt
Goal #3 - Cut taxes
Supply-side Economics-lower taxes meant
more $ for businesses and consumers to spend
and invest

11. F. Trade and Arms Control 1. Isolationism
President Harding recommitted to staying out of European affairs and promoting peace through agreements with individual countries
2. The Washington Conference (1921)
Major countries of the world agreed to reduce the size of their naval arms
3. The Dawes Plan (1924)
U.S. plan to get England/France to repay the war loans by loaning $ to Germany who then paid England and France who then used the $ to repay U.S.
4. Kellogg-Briand Pact (1928)
Major countries of the world agreed to make war illegal