1. Politics and Prosperity
Ch 14
Politics and Prosperity

2. Section 1-A Republican Decade
1920, Warren G. Harding wins presidential race; calls for return of “normalcy”
Vladimir Lenin and Bolsheviks gain control of Russia; make peace with Germany, and place privately owed ventures under govt. control
Reds (Lenin) win Civil War; creation of Union of Soviet Socialist Republics (USSR) and ideology of Communism

3. Communism Total contrast to capitalism and other American ideas
Government owed all land and property
One single political party
Country, rather than individual
Americans reacted with Red Scare-fear of Communism and other radical ideas

4. Effects of the Red Scare
Court cases made freedom of speech void, if it were a “clear and present danger” to the nation
Attorney General Palmer created a special task force, which arrested thousands of suspected radicals, and without evidence, deported more than half of them

5. Strikes
Various groups (police, telephone operators, steel/coal workers) strike to obtain higher wages, shorter hours, and the right to organize
Through some violence and compromises, strikes began to decline

6. Foreign Policy
Isolationism-avoid political or economic alliances w/foreign countries.
Disarmament- a program in which the nations of the world would voluntarily give up their weapons.

7. Domestic Issues Republicans gain control, sought stability
Nativist movement-postwar immigration increase, caused President Harding to pass a quota on the amount of immigrants representing certain groups
Harding also fought for stronger civil rights, to increase social stability

8. Coolidge and the Election of 1928
V.P.-Calvin Coolidge replaces President Harding, after his death
Imposes Laissez-faire approach to business: lowered income tax, and approved higher tariffs
Laissez-faire-govn’t leave business alone
Coolidge does not run for re-election; Herbert Hoover, Rep., wins due to his Pro-Prohibition stance

9. Section 2 Business Boom Consumer Economy-based on spending
Nation began to focus on the consumer; fast food develops, advertising develops
Reasons for buying: more money, good advertising, new products, lower costs, buying on credit, electric power.
Installment plan- customer makes partial payments until debt is paid

10. Ford and the Automobile
“Horseless carriage”-Henry Ford created gas-powered car, and upon improvement, sold Model T ( ,000 sold)
Ford made the assembly line efficient; Allowed for workers to do specialized task, and made production faster
Factory, based in Michigan, produced Model T’s every 24 seconds; built half of the world’s automobiles

11. Industrial Growth Cause and Effect: Industry produced industry
Automobile (garages, car dealerships, camp sites, gas stations)
Aviation (air mail, small domestic flights)
Most enjoyed better standard of living, farmers left out.

12. Section 3 Economy in the Late 1920s
To keep workers happy and to avoid labor union problems, companies established higher salaries, health plans, vacations, and company controlled unions-WELFARE CAPITALISM
Americans began to acquire lots of personal debt
More people gained access to the stock market, in hopes of getting rich quick; borrowed money to buy stock