1. 1920s Economy and Politics
Mr. Turner

2. Background Nicknamed the Roaring 20s
After WWI, America’s economy exploded with growth
The US became a consumerist culture
Stock prices rose, factories produced more goods, and wage rose

3. 1920s Economy

4. The Automobile Drives Prosperity
Henry Ford revolutionized the auto industry
1908- Ford introduced the Model T for $850
He started to use a moving assembly line to create his cars
By 1927 the Model T cost $290
He shortened the work day to 8 hours, workweek to 5 days, and increased pay to $5 a day
If workers had more money and time they would be able to buy his car

5. Automobile Changes America
Auto industry stimulated growth in other industries
Steel, glass, rubber, asphalt, wood, gas
Created the road construction industries
Allowed people to move to the suburbs out of crowded cities

6. The Consumer Revolution
Magazine and newspaper ads showed Americans products the “needed”
Created the trend of “installment buying” - making a down payment and then monthly payments
Stock market saw a huge “bull market” - rising stock prices
People began to buy stocks to get rich quick
They began to buy on margin - putting down 10% on a number of stocks and paying the rest at a later date

7. Changing City Landscape
Farmers left fields, African-Americans left the South, and Mexicans came to America and moved to cities
Suburbs grew because people could afford to go back and forth to cities for work
However, money was pumped into the stock market (which would go on to crash) and farmers’ wages lowered

8. Politics of the 1920s

9. The Harding Administration
Warren G. Harding - 29th President
Named Andrew Mellon Sec. of State - advanced business interests, favored low taxes, and reduced the budget
Harding and Mellon reduced government regulations
Sec. of Commerce was Herbert Hoover who promoted voluntary advancements
The Ohio Gang - Harding’s buddies that he gave jobs in government to - accepted bribes and tried to make money off of Citizens

10. The Teapot Dome Scandal
Secretary of the Interior Albert Fall transferred oil reserves in Elk Hills, CA and Teapot Dome, WY from the Navy Dept. to the Interior Dept.
He leased the properties to private oilmen in exchange for bribes
In Fall was brought before the Senate and sentenced to 1 year in prison

11. Calvin Coolidge
Coolidge was Harding’s VP - became president in 30th president in 1923
Known as “Silent Cal” - he was quiet, honest, and frugal
Coolidge believed in the importance of Big Business - “The Business of America is business”

12. Coolidge
Reduced the national debt, decreased the budget, and lowered taxes
The economy boomed for 6 years
Kellogg-Briand Pact- a treaty to outlaw war as an instrument of national policy and was signed by 62 nations - was unenforceable

13. Troubles under the surface
Crop prices continued to fall and farmers struggled
African-Americans faced discrimination under Jim Crow laws
Coolidge did not do anything to help these - he believed that it was not the government's job to create an ideal nation