1. The Politics of Boom and Bust

2. Politics in the 1920s
Presidents of 1920s brought America out of post-war recession to great prosperity
Did this through cooperation with big business
End to Progressive reform, move to active government aid to business
Much economic prosperity built on unstable foundation

3. Harding as President
Often cited as worst president in American history
Biggest weakness was his inability to see corruption in his own administration (Ohio Gang)
Main goal was to help business
Reversed many Progressive rulings
Antitrust laws not enforced

4. Isolationism in Foreign Policy
No Treaty of Versailles, no League
Disarmament
Holiday on construction of battleships
1928—Kellogg Briand Pact—denounced war as an instrument of foreign policy
Useless policy—why?

5. Political Scandals Series of scandals under Harding
Teapot Dome Scandal—Government leased out priceless oil reserves to businesses for profit.
Harding’s popularity forever diminished, died in office in 1923

6. “Silent Cal” Coolidge Honesty, industry, frugality
Firm believer in laissez-faire, but also government aid to business
Got rid of corruption in Washington
Easily won re-election in 1924

7. Debating Debts
Allies owe US money—resentful, and complain can’t pay back until Germany pays reparations
US refuses to forgive debts, but is willing to lend money to Germany to pay reparations to Allies, so Allies can pay back Americans (Dawes Plan)
Issue of debts created lots of ill will against Americans

8. Herbert Hoover as President
Landslide victory in election of 1928
Ideal businessperson’s candidate
Democratic candidate Al Smith criticized for religion and being “wet”—Rum, Romanism and Ruin speech
Two accomplishments before Depression
Aid to farmers with Federal Farm Board
Hawley-Smoot Tariff—HIGHEST PROTECTIVE TARIFF EVER IN PEACETIME (NEARLY 60%)!!!