American Prosperity in the 20’s The Roaring 20’s American Prosperity in the 20’s

The Harding Administration 1920 Election - Warren G. Harding runs as the Republican nominee. He promises A RETURN TO NORMALCY. Returning America to what is was like prior to World War I. - James M. Cox runs as the Democratic nominee. His running mate was FRANKLIN ROOSEVELT. www.270towin.com

Scandals in the Harding Administration 1) THE OHIO GANG - Harding appoints political allies and old poker playing friends to posts in his cabinet and other positions. “The air (would be) heavy with tobacco smoke, trays with bottles containing every imaginable brand of whiskey…cards and poker chips at hand – a general atmosphere of waistcoat unbuttoned, feet on desk, and spittoons alongside.” 2) Veteran’s Bureau - Charles Forbes sold scarce medical supplies from veteran’s hospitals and kept the money for himself, costing the taxpayers $250 million.

Scandals in the Harding Administration 3) TEAPOT DOME SCANDAL - Harding’s secretary of the interior, Albert Fall leased oil-rich public lands at Teapot dome, Wyoming and Elk Rapids, California to two private oil companies. - Fall received bribes totaling more than $300,000, several ranches and prize livestock. - Harding dies August 2, 1923 and Calvin Coolidge takes over The Presidency.

“Coolidge keeps things cool” - Coolidge returns respect to the Presidency after the Harding administration.

Causes of 1920s Prosperity A. Government’s Role 1) Limit interference of government in business 2) Taxes were cut for Americans - Before Coolidge administration most taxpayers paid 4%, while wealthy Americans paid 73%. - Coolidge’s administration cut the rate most Americans paid to 0.5% and wealthy Americans to 25%. - This allows average Americans to have more disposable income. 3) Government imposes higher taxes on foreign companies to favor and help out American industries.

Causes of 1920s Prosperity B. Business Innovation and Technology 1) Mass production creates a wide range of goods sold at low prices. EX) The assembly line and the automobile. Before the A.L. it took 12 hours to make a single car. In 1913 it took 93 minutes and by 1925 a car was rolling off the assembly line every 10 minutes. This dropped the price of cars from $850 in 1908 to $295 in 1924. 2) Workers earn higher wages - Employees at Ford Motor Company earn $5/day and also see their workday reduced.

Causes of 1920s Prosperity 3) New technology leads to new industries being born and stimulating economic growth - Airplane - Automobile - Radio