IMPACT OF WAR

Trade and Arms Control

Former wartime allies owed the United States more than $10 billion in war debts. By the 1920s the U.S. was the dominant economic power

Isolationism Americans wanted to be left alone to pursue prosperity. The U.S. was too powerful economically and politically to stay isolated. U.S. policy to promote peace through agreements with individual countries

The Dawes Plan Wartime allies had difficulty paying back war debts Allies argued that the United States should be willing to bear more of the financial burden because it had suffered far fewer wartime casualties. An agreement with France, Britain and Germany by which American banks would make loans to the Germans to enable them to pay more war debts.

Abolishing War Written agreements could end war all together. Secretary of State Frank Kellogg and French Foreign Minister Aristide Briand proposed a treaty to outlaw war. Kellogg-Briand Pact – 62 countries ratified it

The Twenties: Business boom or False Prosperity?

Return to Normalcy

Return to Normalcy Warren G. Harding as President Slogan: Return to “Normalcy” or Return to “Normal” life after the war

Creation of the “Ohio Gang” Harding would appoint many friends and political allies into high-level jobs. Some of these people sold government jobs, pardons, and protection from prosecution. Harding was bothered by what his so-called “Friends” were doing. Died of a heart attack on a tour of the West.

The Teapot Dome Scandal Secretary of the interior: Albert B. Fall The first cabinet officer in history to go to prison Secretly allowed private interests to lease lands containing U.S. Navy oil reserves in Teapot Dome, Wyoming. Received over $300,000 in bribes.

Coolidge Prosperity Calvin Coolidge – President after Harding dies “Silent Cal” Believed that prosperity rested on business leadership and that part of his job as president was to make sure that government interfered with business and industry as LITTLE as possible.

Keep “Cool” with Coolidge Won the Election of 1924 Aligned with Prosperity and Big Business

Changing Market Conditions “Quiet Depression” Government had encouraged more farm production during the war Many farmers borrowed heavily to buy land and new machinery to raise more crops After the war this changed, Americans could no longer sell their outputs overseas.

Mass Consumption and the clash of cultural values

Standard of Living Rise in the Standard of Living Per capita earnings soared 22% between 1923-1929 Mass Production: Large-scale product manufacturing usually done by machinery

The Assembly Line Divided operations into simple tasks that unskilled workers could do to cut unnecessary motion to a minimum “Model T” In 1908 sold for $850. In 1914 it reduced its price to $490 By 1917 it was $360

Consumer Durable Goods Electric Razors Disposable Facial Tissues Frozen Foods Home Hair Dye

Appliances

Easy Consumer Credit Growth of individual buying Gave Americans the confidence to go into debt SPEND SPEND SPEND!!!! “Buy now and pay in easy installments” Family car, radio, furniture, washing machine, vacuum cleaner