1. President Harding/American Economy (Ch. 12, Sec. 2 & 3) 1. Scandals Rocked Harding’s Administration 2. Automobile & Airplane Changed American Life 3. American Economy Soared During 1920’s

2. What scandal’s rocked Harding’s presidency at the end? Fordney-McCumber Tariff blocked France & Britain from US markets Dawes Plan loaned Germany $2.5 Billion to pay France & Britain (so they could pay back US) But, his Ohio Gang (his corrupt friends) used their power to gain wealth Head of Veteran’s Bureau (Forbes) busted selling government supplies (private company) Teapot Dome Scandal saw Sec. of Interior take a $400,000 bribe (leased land-oil reserves)

3. How did the automobile and the airplane change life in America? Cars gave people (families) mobility (urban sprawl, travel, entertainment) Construction of paved roads (Route 66) became a necessity & connected America Gasoline stations, motels, restaurants (fast food), & shopping centers sprang up Airplanes were used to deliver the mail (first used in 1918) Airlines soon developed as planes were used for passenger flights (Trans-Atlantic in 1927)

4. What caused the American economy to soar during the 1920’s? The average annual income of US grew by more than 35% Electricity caused a revolution in household appliances (convenience) Modern advertising targeted people’s desire to be young, beautiful, healthy, & wealthy Many people began to buy goods on credit (installment plan) Productivity increased & many businesses expanded (mergers, chains)