Normalcy and Good Times
The Harding Administration 1919 Campaign slogan: “a return to normalcy” Very Popular president Appointed his “poker playing” friends to the cabinet. “The Ohio Gang” Corrupt government
The Harding Administration cont.. Teapot Dome Scandal : Harding's secretary of the interior, Albert Fall allowed private interests to lease lands containing U.S. Navy oil reserves in Teapot Dome, Wyoming Received bribes totaling over $300,000 Scandal! – Fall ends up in Prison Harding dies in 1923.Harding dies in 1923.
Coolidge Administration V.P. Calvin Coolidge becomes President after Harding's death Coolidge is re-elected in 1924 Coolidge promised to give the United States the normalcy that Harding had not.
The rise of new industries New standard of living Wages increased and work hours decreased Mass production of goods and services Greater productivity led to the emergence of new industries.
New industries Assembly Line: Henry Ford Increased manufacturing efficiency by dividing up operations into simple tasks that unskilled workers could perform. Model first produced – 850$ After mass production dropped to 295$ Garages and gas stations opened Petroleum industry expanded
New Industries cont... Ford increased workers' wages and reduced the workday to gain workers’ loyalty and undercut union organizers 1926 – National Broadcasting Company (NBC) established a permanent network of radio stations to distribute daily programming
Isolation of Rural life ended!
The Consumer Society Higher wages and shorter workdays led to an economic boom as Americans traded thrift for their new role as consumers Attitudes about debt changed (installment plans) Advertising was used to convince Americans that they needed new products
Farm crisis Farmers were not as prosperous as the rest of America. Prices dropped dramatically while the cost to improve farmers’ technology increased. Farmers borrowed money and bought land and machinery at inflated prices Europeans stopped buying American farm products because congress raised taxes.
Promoting prosperity Govt spending and the federal budget was cut during the Harding adminstration Taxes were lowered to allow businesses and consumers to spend and invest their extra money which resulted in Economic growth.
Trade and Arms control U.S.A. was the dominant economic power in the world. Allied powers owed the U.S.billions of dollars in war debt. Many Americans favored isolationism rather than involvement in international politics and issues U.S. was too powerful and interconnected in international affairs to remain isolated
Trade and Arms Control The end!