1. I. Republican Era: Harding, Coolidge, Hoover
Efforts to end the postwar recession
repealed taxes, reduced fed. gov’t spending, and paid down national debt
Result: prices fell which fueled demand for goods and services, and unemployment reduced from 12% to 2%
The Teapot Dome Scandal – Harding’s friends (“The Ohio Gang”) took bribes to lease gov’t land for oil drilling

2. II. Engaging the World in an Era of Isolationism
The horrors of WWI caused many to support isolationism particularly towards Europe (League of Nations established without the U.S.)
Washington Naval Conference in 1921 – to avoid future wars, the U.S. and other countries agreed to limit the size of their navies
Kellogg-Briand Pact – agreement outlawing war signed by 62 nations including the U.S. (symbolic only)
Dawes Plan – to settle debts from WWI, American banks loaned money to Germany, Germany used the money to pay France & Great Britain, and France and Great Britain paid back WWI loans to American banks

3. Kellogg-Briand Pact Nations

5. III. The Republican Boom Years
Business expanded, productivity increased, unemployment fell, wages increased, U.S. produced 40% of world’s manufactured goods
Henry Ford’s assembly line allowed for mass production; lowered prices made cars affordable
Cars sparked new industries: steel, rubber, oil, highway construction, restaurants/hotels, gas stations, repair shops, (1 in 8 Americans worked in a job related to the auto industry)
Other industries: domestic airlines, plastics, radios
Middle class speculation: land, stocks

6. Airlines

7. IV. Evaluating the Boom GNP rose by 40%
Hard time for farmers and farm workers as surplus crops depressed prices
Unskilled workers, particularly African Americans, were laid off as new industries and technologies emerged