Presentation on theme: "The Harding Administration and the Business of America"— Presentation transcript:
1 The Harding Administration and the Business of America Mr. White’s US History 1
2 Main Idea and Big Questions Main ideas:The Harding administration appealed to America’s desire for calm, peace, and “normalcy” after the war, but resulted in scandalConsumer goods fueled the business boom of the 1920s as America’s standard of living soared, though the prosperity had weaknesses and flaws.Big questions:How did the scandals of Harding’s presidency lead to a loss of credibility for Harding?How did Coolidge and Hoover’s administrations use government to foster business and industry?What were signs of increased prosperity and a higher standard of living in the United States?What were signs of weakness in the economy in the 1920s?
3 Part I: Harding’s Postwar Issues Warren G. Harding’s administration worked to encourage peace and deal with post-war issues.Part I: Harding’s Postwar Issues
4 Washington Naval Conference After the war, Warren G. Harding held the Washington Naval Conference to discuss naval disarmament between the great powersThe U.S. suggested that they, Britain, Japan, France, and Italy decrease naval armamentsAll nations agreed to the Kellogg-Briand pact, but there was no way built into the agreement to enforce the treaty
5 Cycle of DebtAs a result of the war, Britain and France had debts to the U.S. – had taken out loans to pay for the warBritain and France planned to use German war reparations to pay these debtsHowever, Germany was increasingly not able to pay the war reparationsWhen Germany defaulted on its loans, France invaded the Rhineland in GermanyTo avoid further conflict, the United States agreed to lend money to Germany, to pay Britain and France, to pay the United States
6 Harding’s administration was plagued by scandals that resulted in a loss of credibility. PART II: Scandal
7 The Ohio Gang Harding had a great deal of trouble as president He appointed political cronies and friends to his cabinet – the “Ohio Gang.”Many of these men got rich off government graft, kickbacksHarding also had a great deal of trouble understanding the problems of his presidency – often couldn’t make a decision
8 Teapot DomeThe government had set aside oil reserves at Teapot Dome, Wyoming, for the use of the U.S. NavyAlbert B. Fall, secretary of the interior, had the reserves transferred from the department of the Navy to the department of the InteriorThe reserves were leased to two private oil companiesFall received nearly $400,000 in loans, bonds, and cash as “gifts”Fall was found guilty of bribery – this basically destroys Harding’s credibilityHarding dies shortly thereafter and Calvin Coolidge takes over as president
9 Part III: Business and Industry Coolidge and Hoover’s administrations used government to foster business and industry, which flourished.Part III: Business and Industry
10 Coolidge and HooverBoth Calvin Coolidge and his successor, Herbert Hoover, adopted pro-business government policiesUsed protective tariffs to foster American businessWorked to keep taxes lowWorked to make credit available to business that wanted to expand
11 AutomobilesThe automobile industry grew in the United States at this timeMore and more people owned carsMore cars resulted in changes in societyRural families could go into the cities for shopping and entertainmentFamilies could now travel long distances for vacationsWomen and young people found new freedoms with the automobileWorkers could now live further away from their jobs – urban sprawl resultsThe automobile came to be a cultural symbol of prosperity
12 Ford and the Model THenry Ford’s innovate assembly line methods had sped up mass productionCars could be produced cheaper – more people could afford themCars could be produced more quickly – expanding marketsFord’s Model T was a great example of using these assembly-line methodsParts were completely interchangeable; basically nothing was hand-craftedAs production increased, Ford streamlined and offered the car only in black
13 Airplanes The airplane also grew as a means of transportation In the United States, the plane was first used to carry mail – first flight was a failure, but it caught on graduallyAs the science of weather forecasting caught on, planes began to carry radios and navigational instrumentsIn 1927, Pan American began transatlantic flights
14 Part IV: Rising Standards, Superficial Prosperity As industry flourished, America’s standard of living rose. However, many signs pointed to a superficial prosperityPart IV: Rising Standards, Superficial Prosperity
15 The Growth of IndustryIndustry had grown during World War I and continued to be strong after the warThe United States produced more consumer goods as time went onElectricity and electrical conveniences and appliances grewAdvertisers, to sell their products, began to use psychology and related methods to encourage people to buy their products
16 Weaknesses in the Economy Even though the U.S. seemed prosperous, many signs pointed to weaknesses in the economyConsumer goods were growing; not as much growth in heavy industriesThe income gap between the rich and poor grew – sign of a weak, small middle classIron and railroad industries weren’t making much profitFarmers weren’t making much money, either, and many had taken out loans to meet World War I production
17 CreditSpurred by this consumer spending, more and more people began to buy goods on credit, instead of cashAn installment plan was an arrangement to buy a product and pay over time for an interest rateMore and more people used credit to buy goods; some went into debt that they couldn’t paySome economists pointed to this as the sign of a weak economy, but many people felt that the economy was strong.
18 Summary Remember our big questions: So… How did the scandals of Harding’s presidency lead to a loss of credibility for Harding?How did Coolidge and Hoover’s administrations use government to foster business and industry?What were signs of increased prosperity and a higher standard of living in the United States?What were signs of weakness in the economy in the 1920s?So…Harding lost credibility as a president because…One way that Coolidge and/or Hoover fostered business or industry was…One of the signs of increased prosperity and a higher standard of living in the U.S. was…One of the signs of weakness in the economy in the 1920s was…
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