The Roaring Twenties Section 1: Politics and Prosperity

WWI helped economy a great deal When soldiers came home, there were not enough jobs Economy faced serious recession Economic slump Democrats were out – Republicans were in I. Republicans in Office

A.Harding Takes Office 1.Pro-business policies a)Mellon – secretary of treasury i. balanced budget & lowered taxes b)Hoover – secretary of commerce i.Expand American business overseas Return to the normal way of doing things – like it was before the war!

B. Corruption & Scandals 1.Harding brings in his good friends to be his cabinet – “Ohio Gang”. a.Scandals resulted i.Veteran’s Bureau Scandal – Forbes stole millions. ii.Teapot Dome Scandal – Albert Fall was bribed by 2 oil to executives to lease them government land 2.Harding dies of a heart attack – were the scandals to blame? "I can take care of my enemies, but its my friends that keep me walking the floors at night"

The Teapot Dome Scandal This cartoon, published in 1924, comments on the scandal. 1.Why are the officials running? 2.How will the White House be affected? 3.What is the significance of the rolling oil tank? 4.According to the cartoonist, how will this scandal affect the government?

“You Lose” B. Coolidge Takes Office 1.“Silent Cal” very different than Harding 2.Coolidge set out repair damage a) forced officials involved with scandals to resign 3.Ran for president when term was up and won

II. Coolidge Prosperity A.Industry Booms 1.“Coolidge Prosperity” – pro-business policies that caused a rapid economic growth 2.Factories switch to consumer goods – recession ends! 3.Incomes rose = bought new consumer products a)Refrigerators, radios, phonographs, vacuums 4.Advertisements boost sales – happiness depends on owning 5.Installment buying – buying on credit Also believed business prosperity would help all be prosperous. Cut regulations on business Named business leaders to government agencies

B.A Soaring Stock Market 1. stocks – shares in a company – make/lose money depending on price of shares 2. rising stock prices – fortunes were made 3. Bull market – period of increased trading and rising stock prices. 4. buying on margin – worked as long as stock prices went up. Coolidge Prosperity Continued

A.Latin America 1.Cut off from Europe during the war 2.US trade & investment increased 3.At times – the US got involved to protect economic interests – Nicaragua revolution 4.Mexico & foreign owned oil companies – troops or diplomat? – compromised worked out III. A Limited Role in World Affairs Europeans expected Americans to take a major role in world affairs. Harding & Coolidge id not want to commit the US to keeping world peace Return to isolationism

B.The Soviet Union 1.Lenin creates first communist state 2.Communism = economic system – wealth and property owned by “community as a whole” 3.US refuses to recognize government but send $20 million to aid famine C. Pursuing Peace 1.People favored reduction of armed forces – disarmament 2.Harding & Coolidge backed peace efforts 3.Kellogg-Briand Pact – 62 nations outlawed war a.No means of actually keeping peace Limited role in world affairs continued