1. Warren G. Harding’s Presidency:
“Return to Normalcy”

2. “Return to Normalcy”
Republicans believed Americans disillusioned by war
- want isolationism again [as little Euro involvement as possible]
- simpler, pre-reform life
promoted laissez faire economics

3. Harding Deals with Post War Issues
1) Washington Naval Conference, 1921
US, Japan, GB, Fr. & Italy reduce # of warships –first time countries agree to cut military
2) Kellog-Briand Pact, 1928  outlaws war
3) Budget Accounting Act  streamlined federal spending [required annual budget]

4. 4) Dawes Plan
Fr and GB want immediate payment of Ger reparations
US loans Germany $, Germany pays Fr & GB  pay back US

5. Scandal During Harding’s Presidency
“Ohio Gang”: corruption of friends in cabinet positions (graft & accepting bribes)
Charles Forbes [Sec’y of Veteran’s Affairs] sells Vet hospital’s supplies to private hospitals

6. Teapot Dome Scandal
Teapot Dome land in WY & Elk Hills, CA reserved for Navy
Sec’y of Interior, Albert B. Fall, secretly “loaned” land to oil companies (gets $400,000)
Fall found guilty of bribery [first cabinet member convicted of a crime]

7. Administration in Turmoil
Scandals become public few days later Harding dies [heart attack]
VP Calvin Coolidge becomes Pres
“I have no troubles with my enemies, its my friends that are giving me sleepless nights”

8. The Business of America Under Coolidge
How Does Coolidge’s Conservative Policies create Economic Growth During the 1920s?

9. Industry flourished under Coolidge
continues Laissez Faire, pro- business
Low taxes, easy credit = more profits, able to expand
high tariffs on foreign imports
Investment in stock market
Result: Wages and productivity increases

10. Automobile Spurs Growth
Paved roads and highways are built
Best known is Route 66 from Chicago to LA
- businesses along highways including gas stations, motels, restaurants
First underwater tunnel for cars is built connecting NJ & NY (Holland Tunnel)
Urban Sprawl: cities grow as workers able to drive to work faster, houses now come with garages

11. Airline Industry Begins
Post WWI, planes used to transport mail
Lindbergh & Earhart prove airplanes can be viable transportation
Pan American Airways forms, begins carrying both passengers and packages

12. Standard of Living Rises
Avg. annual income rises 35%
Advances in electricity give power to more people
Electrical appliances change life in the 20s
Modern Advertising begins in the 20s
Electric Iron
Refrigerator
Washing Machine

13. Superficial Prosperity
Signs of problems to come were ignored
Growing income gap between workers & managers
Iron, RR, farming industries suffering
buying on creditmonthly payments more than they can afford
People gambling on stock market