1. “The change is amazing” March 4 th, 1921 – Harding becomes president (R) [warm, friendly, open] Wilson (D) was out [sick, remote, bitter] “Back to Normalcy” was Harding’s slogan Harding (R) Wilson (D)

2. Republicans in Office WW1 had helped the economy WW1 had helped the economy – When it began – Eu. ordered tons of supplies from U.S. factories – When U.S. had joined - factories expanded rapidly meeting demands for military supplies

3. Republicans in Office 1.) When war ended – two million soldiers came home & looked for jobs 2.) At the same time, factories stopped turning our war materials Result: sharp recession: economic slump

4. Harding Takes Office Recession fed voter discontent with Democrats (held power for 8 years) Recession fed voter discontent with Democrats (held power for 8 years) Cabinet positions: he filled with men who followed pro-business policies Cabinet positions: he filled with men who followed pro-business policies – Andrew Mellon: became secretary of the treasury: balanced budget/ lowered taxes – Herbert Hoover: became secretary of commerce: helped American businesses expand overseas

5. Corruption & Scandals Harding brought in friends for most other Cabinet posts Harding brought in friends for most other Cabinet posts – Ohio Gang: “old friends” & Cabinet members of Harding’s administration who saw government service as a way to enrich themselves; resulting in a series of scandals

6. Scandal “Friends” betrayed him, didn’t take their jobs seriously, stole money & carried out scandals... Harding was stressed “Friends” betrayed him, didn’t take their jobs seriously, stole money & carried out scandals... Harding was stressed August, 1923 Harding died of a heart attack August, 1923 Harding died of a heart attack

7. Teapot Dome Scandal - Harding’s secretary of the interior (Fall) had been bribed by 2 oil executives - Fall secretly leased them gov’t land in California & Teapot Dome, Wyoming - Fall = 1 st cabinet official ever sent to prison

8. Coolidge Takes Office (R) Party Hardy & Silent Cal Party Hardy & Silent Cal “Silent Cal” was tight with $$ & words vs. Harding who liked to party & give long speeches) “Silent Cal” was tight with $$ & words vs. Harding who liked to party & give long speeches) Coolidge Sets out to correct damage caused by scandals Coolidge Sets out to correct damage caused by scandals – Forced officials involved in scandals to resign – 1924 – wins again “keep cool with Coolidge”

9. Coolidge Prosperity Believed that prosperity for all Americans depended on business prosperity – Cut back regulations on business – Named business leaders to head gov’t agencies

10. Industry Booms – “Coolidge Prosperity” His pro-business policies contributed to a period of rapid economic growth (1923-1929 production doubled) For most Americans, income rose – Able to buy a flood of new consumer products (fridge, radios, vacuums, appliances)

11. Businesses used advertising to boost sales of consumer goods -Encouraged people to think their happiness depended on owning a wealth of shiny new products - People often wanted to buy things they couldn’t afford

12. BRAIN BREAK!!! EQW: what was your most favorite thing to pretend when you were a little kid?

13. Remaining Time Today: Daily Reader Key Terms… work efficiently! Tomorrow: installment buying