2. The Roaring
Twenties

3. The Republican Decade

4. The Republican Decade Trends: Isolationism/Protectionism
Laissez faire economics
Removal of anti-trust laws
High tariffs
Labor unions struggle
Tax cuts
Fordney-McCumber Tariff raised rates to 38%, helping domestic business, but hurting European countries that needed to export to the US to pay back their WWI debts.

5. A Return to “Normalcy”
Warren G. Harding’s promise to return to “normalcy” after the war – a return to pre-WWI America
Ohio Gang: Friends and political allies from Ohio that Harding appointed to high government positions
Many were corrupt
He was tall and handsome, and looked the part of President
Was gullible and of average intelligence
Harding was chosen because he was “folksy” – a man of the people, as a contrast to Wilson’s elitist professorial persona.
Ohio Gang: Sold government positions, gave criminal pardons, laundered money, etc.

6. Teapot Dome Scandal Oil is found near Teapot Dome, WY
Sec. of Interior Albert B. Fall had the land secretly placed under his control, accepting bribes for oil drilling rights
Word leaked out and the case dragged on for six years, adding jury and evidence tampering to the scandal
Teapot Dome Scandal

7. “Stay Cool with Coolidge”
Calvin Coolidge
Conservative, isolationist, very pro-business
Dawes Plan: US loaned $200 million to Germany so they could pay their WWI debts, which would allow GB and France to pay the US back
“The chief business of the American people is business.”
Harding dies of pneumonia
Charles Dawes, an American banker and current VP, gave a $200 million loan from US banks would help stabilize the German economy
It set a more realistic repayment plan than the German reparations plan under the Treaty of Versailles
They could pay back Britain and France, who could then repay the US

8. Tough Times on the Farm WWI = High farm prices (feeding an army!)
Post-WWI = drop in demand + high cost of farm equipment  low farm prices many farmers in extreme debt (only group that didn’t benefit from the 1920s)
Congress tried to pass laws to help farmers; vetoed by Coolidge 2x (not the government’s job to bail people out)
Congress tried to keep agriculture prices high by buying surpluses and then selling them to other nations. The idea was vetoed twice by Coolidge.

9. Election of 1928 Herbert Hoover (R-OH) vs. Alfred E. Smith (D-NY)
Hoover’s election:
Highly influenced by radio
“A chicken in every pot, and a car in every garage"
“rugged individualism”: America had been made by strong, self-sufficient individuals; they should solve their own problems by working harder
Herbert Hoover became the nominee for the Republicans, promoting “rugged individualism” - America had been made by strong, self-sufficient individuals
Democrats nominated NY Governor Alfred E. Smith, a well-liked man, but he was Catholic, which was the death blow for the South.
With the popularity of the radio, Hoover had the advantage over Smith’s grating New York accent.

10. Making the ‘20s Roar

11. The Roaring Twenties
Nicknamed the “Roaring 20s” because of the era’s economic boom
The average wage soared 22%
Work hours and days decreased, leaving more time for entertainment
Many Americans were getting a vacation for the very first time.

12. Master Mellon
Andrew Mellon: Secretary of Treasury throughout 1920s; believed government should operate like a business
Supply-side/“Trickle-down” economics:
Tax cuts (esp. for wealthy) 
More disposable income
Invest/spend extra $
Government has more $ to tax
Goals: balance the budget, reduce government debt, and cut taxes.

13. Changes to Business Modern organizational business structures
Creation of divisions in business, e.g. marketing department
Increase in the use of managers helped the middle class grow
Welfare capitalism: Companies provide opportunities and services to employees to encourage loyalty and productivity (e.g. medical benefits, pensions, etc.)
Unionization lost popularity – times were good, so why join a union?

14. Stock Market Terms Stock Buying on Margin Speculation Bull Market
Bear Market
Market Chicken
Market Pig

15. Abundance of new goods available: improved technology and increased demand
Advertised via radio
Buying on credit:
Inflated sense of wealth; vast amounts of debt
Many new goods came on the market to take advantage of the new disposable income.
Most were advertised on the radio
People began buying high-priced items on credit – enjoy now, pay later!
Quickly, credit was applied to all purchases, big and small, inflating ideas of the public wealth and security of purchases
The Consumer Culture

16. Historical Holiday Extra Credit
Create a holiday decoration that represents a historical figure or event we have studied this semester. The decoration must be your own design, and must be three-dimensional (i.e. not just a picture drawn on paper). Answer the following questions on a separate piece of paper and turn in with your decoration.
What event or figure did you choose for your decoration? Why did you choose it?
What is the significance of your person/event in U.S. History?
Explain your reasoning and process for creating the decoration in the way you did.
If there was going to be a holiday movie made about your person or event, what would it be about?
Up to 20 Points Extra Credit
Due Friday, December 1, 2017