Return to Normalcy American History (B) Mr. Simmons

Harding Administration In 1920 most Americans wanted to return to normal life after the war. Harding campaign slogan was “return to normalcy” so he was very popular Appointments to cabinet were called the “Ohio Gang” – pokers playing buddies. They would use positions to sell jobs, pardons, and immunity from prosecution. Albert Fall and the Teapot Dome Scandal, first cabinet officer being sent to prison. Attorney General Harry Daugherty was bribed and when caught he claimed special immunity and forced to resign.

The Coolidge Administration Coolidge was Vice President under Harding and became president after Harding's death in Prosperity through business leadership with little government intervention. Coolidge won 1924 election promising the return to normalcy Harding had not delivered.

Discussion Question 1. What was the theme for Harding’s Administration? 2. Why did business like Coolidge?

The Rise of New Industries New standard of living (wages increased and work hours decreased) Mass Production – large scale production done by machinery increased supply and decreased costs. Assembly line – dividing operations into simple tasks that unskilled workers could perform (Ford Motor Company) Forced price of Model T down from $850 - $295 Opening of garages and gas stations, petroleum industry expanded.

The Rise of New Industries (cont) More disposable innovations, like frozen foods, electric razors, household cleaners, appliances. Airplane – In 1927 Charles Lindberg took first transatlantic solo flight, which gained support for commercial flight. In 1926 NBC established a permanent network of radio stations. In 1928 CBS set up stations to compete.

The Consumer Society Higher wages and shorter workdays, attitudes toward debt changed Advertising was used to convince Americans that they needed new products. 1920’s businesses hired more managers and engineers increasing the size of middle class Decrease in union membership - Welfare capitalism – employees could purchase stock, profit-sharing, receive benefits

Farm Crisis Returns No Prosperity for farmers in the 1920’s as prices dropped and cost increased (technology). Farmers had borrowed money at inflated prices and now were defaulting on loans. After war congress raised tariffs and farmers could not sell products overseas. Coolidge twice vetoed a bill to aid the farmers fearing it would make situation worse.

Discussion Questions 1. How did mass production and assembly lines affect economic growth? 2. How did attitudes toward consumerism change? 3. Why do you think farmers were left out of economic prosperity of the 1920’s?

Promoting Prosperity Andrew Mellon, named secretary of Treasury reduced federal debt between 1921 and 1929 by 7 billion dollars. He proposed supply side economics to reduce taxes – lower taxes leads to more investment, in end more taxes collected at lower rate. Secretary of Commerce Hebert Hoover wanted to balance government regulation with cooperative individualism – sharing of info with manufacturers and distributors.

Trade and Arms Control By 1920 U.S. dominate economic power in the world. Most Americans favored isolationism – left alone to pursue prosperity. Reparation payments crippled Germany after the war. Charles G. Dawes, American banker, loaned money to Germany in what was called the Dawes Plan Kellogg-Briand Act – treaty that outlawed war, no binding power but seen as victory for peace.

Discussion Questions 1. Does the government today use supply- side economics? 2. How did U.S. try to influence economics in Europe?