1. The Roaring ’20s Political & Social History

2. Post War Economy Wartime shortages had forced savings Wartime shortages had forced savings People now wanted to buy cars, appliances, etc. People now wanted to buy cars, appliances, etc. Production could not keep up with demand Production could not keep up with demand Factories had to switch “from guns to butter” Factories had to switch “from guns to butter” Result was inflation Result was inflation 1919 prices rose by 77%, 1920 by another 28% 1919 prices rose by 77%, 1920 by another 28% Agreement to not strike during war ended Agreement to not strike during war ended 1919 – 3,600 strikes for better wages/ conditions 1919 – 3,600 strikes for better wages/ conditions Boston police, steel workers, coal miners Boston police, steel workers, coal miners

3. The Red Scare, 1919-1920 Panic over socialism & communism in the US Panic over socialism & communism in the US Response to Bolshevik Revolution in Russia Response to Bolshevik Revolution in Russia Number of strikes added to fears Number of strikes added to fears Terrorist activities on the rise (anarchists) Terrorist activities on the rise (anarchists) 36 Mail bombs to business & political leaders 36 Mail bombs to business & political leaders Palmer Raids – thousands arrested in 33 cities – often no warrants, denied lawyers Palmer Raids – thousands arrested in 33 cities – often no warrants, denied lawyers American Civil Liberties Union (ACLU) created to protect rights of the Constitution American Civil Liberties Union (ACLU) created to protect rights of the Constitution

4. Sacco & Vanzetti Nicola Sacco & Bartolomeo Vanzetti – Italians Nicola Sacco & Bartolomeo Vanzetti – Italians Accused of murdering paymaster & a guard Accused of murdering paymaster & a guard Robbery of payroll near Boston, 1920 Robbery of payroll near Boston, 1920 Both were known anarchists Both were known anarchists Judge basically said that made them guilty Judge basically said that made them guilty Otherwise little evidence against them Otherwise little evidence against them Found guilty & sentenced to death Found guilty & sentenced to death Appeals process brought Internat’l attention Appeals process brought Internat’l attention Sinclair’s book “Boston” questioned case too Sinclair’s book “Boston” questioned case too Executed by electric chair in 1927 Executed by electric chair in 1927

5. Election of 1920 Dem – James M. Cox – Governor of Ohio Dem – James M. Cox – Governor of Ohio VP – Franklin D. Roosevelt (Asst Sec of Navy) VP – Franklin D. Roosevelt (Asst Sec of Navy) Supported League of Nations & progressive ideas about gov’t regulations Supported League of Nations & progressive ideas about gov’t regulations Rep – Warren G. Harding – Senator of Ohio Rep – Warren G. Harding – Senator of Ohio VP – Calvin Coolidge (Massachusetts Governor) VP – Calvin Coolidge (Massachusetts Governor) Isolationist & against gov’t involvement Isolationist & against gov’t involvement Campaigned from his front porch – small town- like, promised “normalcy” Campaigned from his front porch – small town- like, promised “normalcy” Harding won by a landslide Harding won by a landslide

6. The Roaring Twenties Political History

7. Return to Laissez faire Sec of Treasury – Andrew Mellon (6 th richest) Sec of Treasury – Andrew Mellon (6 th richest) To spur economic growth – cut industry taxes To spur economic growth – cut industry taxes Created Bureau of the Budget – Charles Dawes, head who cut gov’t expenses by 1/3 in 1 st year Created Bureau of the Budget – Charles Dawes, head who cut gov’t expenses by 1/3 in 1 st year Record surpluses, applied to national debt Record surpluses, applied to national debt Revenue Act, 1921 – eliminated war time taxes on businesses Revenue Act, 1921 – eliminated war time taxes on businesses Fordney-McCumber Tariff – set much higher rates & President allowed to raise protective rates, when necessary Fordney-McCumber Tariff – set much higher rates & President allowed to raise protective rates, when necessary

8. American Plan Policy used by employers to break labor unions in the 1920s Policy used by employers to break labor unions in the 1920s Declared demand that workers had to join unions was “un-American” Declared demand that workers had to join unions was “un-American” Refused to work with Unions “to protect the employee” Refused to work with Unions “to protect the employee” Fired troublemakers / strikers Fired troublemakers / strikers Formed company unions with no say Formed company unions with no say Sometimes offered higher wages / benefits Sometimes offered higher wages / benefits Harding actually pardoned labor leaders – including Eugene V. Debs Harding actually pardoned labor leaders – including Eugene V. Debs

9. Harding tarnished by scandals Ohio Gang – Harding’s close political friends appointed to top positions Ohio Gang – Harding’s close political friends appointed to top positions Actually very corrupt group of friends Actually very corrupt group of friends Selling favors Selling favors Jess Smith committed suicide Jess Smith committed suicide Charles R. Forbes – Veterans’ Bureau Charles R. Forbes – Veterans’ Bureau Took $200 million – fled to Europe before jail Took $200 million – fled to Europe before jail Harding left for Alaska – drained by news Harding left for Alaska – drained by news Got sick & died in San Francisco Aug 2, 1923 Got sick & died in San Francisco Aug 2, 1923

10. Worst ones after Harding’s death Attorney General Harry Daugherty Attorney General Harry Daugherty Forced to resign – charged with fraud & bribery Forced to resign – charged with fraud & bribery Had been Harding’s right-hand-man Had been Harding’s right-hand-man Teapot Dome Scandal Teapot Dome Scandal Sec of Interior, Albert B. Fall Sec of Interior, Albert B. Fall Leased gov’t oil fields to oil companies that paid Fall kickbacks – $1000s Leased gov’t oil fields to oil companies that paid Fall kickbacks – $1000s Others in administration also linked to this Others in administration also linked to this Harding’s administration often considered most corrupt in US history Harding’s administration often considered most corrupt in US history

11. Calvin Coolidge Was untouched by Harding era scandals Was untouched by Harding era scandals Very popular, known for integrity Very popular, known for integrity Election of 1924 Election of 1924 Coolidge (Rep) v. John W. Davis, WV (Dem) v. Bob LaFollette (Prog) Coolidge (Rep) v. John W. Davis, WV (Dem) v. Bob LaFollette (Prog) Coolidge won easily Coolidge won easily Refused to comment on controversial issues – called “Silent Cal” Refused to comment on controversial issues – called “Silent Cal” A very “hands off” president – relaxed style A very “hands off” president – relaxed style Will not run for re-election Will not run for re-election

12. “The Business of America is Business” - Coolidge - Coolidge Reduced national debt Reduced national debt Economy was strong Economy was strong Auto industry Auto industry Success of auto industry had a ripple effect through economy Success of auto industry had a ripple effect through economy More white collar workers needed More white collar workers needed Growth of advertising industry Growth of advertising industry Expansion of those buying on credit*** Expansion of those buying on credit*** Debts rising 2 ½ times faster than income Debts rising 2 ½ times faster than income