Chapter 18.1 A Time of Prosperity
I. Introduction Election of 1920 signaled change in America 1. Wilson committed to an active role in world affairs
Election of 1920
New President Warren Harding had little interest in foreign affairs 1920’s became a decade of growth of business
II. Republicans in Command Harding did not have much experience in government 1. Promised a return to “normalcy” 2. Thought U.S. should not be involved in world affairs
3. Opposed government regulation of business 4. Believed the better that business does is good for everyone
Corruption in the White House 1. Harding appointed old friends a. “Ohio Gang”
b. Attorney General took bribes Harry M. Daugherty – resigned after Three years as Attorney General. Accused of knowledge of kickbacks from bootleggers. Later found not guilty of the charges.
b. Head of Veterans Bureau stole millions Charles Forbes - Was convicted of conspiracy to defraud the U.S. Government and sent to federal prison in 1926
Teapot Dome Scandal Albert Fall was found guilty of bribery in 1929, fined $100,000 and sentenced to one year in prison, making him the first Presidential cabinet member to go to prison for his actions in office.
Harding died of cerebral hemorrhage in 1923 a. Calvin Coolidge takes over
Coolidge take oath
Support for Business 1. Coolidge also believed government should not interfere with business a. Believed nation’s prosperity depended on big business
b. “The business of America is New tax laws benefited industry Ended regulations limiting size of corporations Coolidge’s policies created more jobs and goods
Wages rose, workdays were shortened Popularity of Coolidge soared a. Easily won reelection in 1924
III. A Booming Economy Booming economy changed lives of Americans 1. New products a. refrigerators, washing machines, toasters, automobiles
Ice Box
Early Refrigerator
Wash Bucket
Washing Machine
Toaster
Model T
Faster way to make products Products became more affordable
B. The Automobile Industry Automobile helped spur economy of 20’s 24 million cars on road in 1929
Henry Ford was behind the automobile boom a. Designed Model T in 1908 b. Began producing cars on assembly line in 1908 c. 9,000 car per day
Ford Assembly line
Spurred growth of other industries rubber glass steel oil selling, servicing, parking, driving cars roads homes in suburban areas diners, motels
1920’s Motel
Car became symbol of America 6. Installment plan
Growing Confidence and Spending More Americans invested in stock market Value of stocks skyrocketed a. $27 billion in 1925; $87 billion in 1929
1920’s Stock Market
Other items being bought on installment plan 4. Americans caught up in boom of spending 5. Supermarkets, shopping centers, fast food
Supermarket
Advertising became more sophisticated