1. The Business of Government
Chapter 7 Section 2

2. Lecture Focus Question
How did foreign and domestic policies change under Harding and Coolidge?

3. The Russian Revolution
Communism
Govt owned all land and property
Single political party in the govt
Needs of the country come first
Openly hostile to American values

4. Red Scare Red scare: an intense fear of communism Schenck v. U.S.
Govt is justified in silencing free speech when there is a “clear and present danger”
Palmer Raids
“subversives” arrested without evidence
Sacco and Vanzetti
Italian immigrants arrested for murder
Ties to anarchist groups
Little evidence
Executed
Real reason for execution → they were immigrants with radical beliefs

5. Nativism Flares Up Patriotism Religion Urban conditions Jobs Red Scare
Immigration quotas

6. America Swings Right 3 Republican Presidents
Harding
Coolidge
Hoover
Americans called for isolationism
Harding called for disarmament
Kellogg-Briand Pact
Return to laissez-faire
“Return to normalcy”

7. HARDING
COOLIDGE
HOOVER

8. The Harding Administration
Pledged a “return to normalcy”
Favored big business
Protective tariffs raised
Favored laissez-faire approach
The Ohio Gang cashed in to the tune of millions of dollars
Teapot Dome Scandal: illegal transfer of oil reserves approved by Harding

9. Coolidge Prosperity Coolidge took presidency upon Harding’s death
“Silent Cal” placed trust in business
“The man who builds a factory builds a temple”
Goals: reduce national debt, increase incentives for business
Oversaw incredible national prosperity

10. Collecting War Debt GB and France owed U.S. a lot of $ after WWI
Started having trouble making payments
GB and France relied on reparations payments from Germany
Germany unable to make payments
Dawes Plan: plan in which U.S. loaned money to Germany, enabling them to make reparations payments

11. Collecting War Debt cont’d

12. Trouble Brewing Farmers were struggling to keep their land
Labor unions demanded higher wages and better working conditions
Jim Crow laws in the South enforced segregation
Mexican Americans faced shamefully low wages → forced to leave U.S.
War debts and reparations
“Silent Cal” remained silent

13. Lecture Focus Question
How did foreign and domestic policies change under Harding and Coolidge?