1. Chapter 18.1
A Time of Prosperity

2. I. Introduction
Election of signaled
change in America
1. Wilson committed to an
active role in world
affairs

3. Election of 1920

4. New President Warren Harding had little interest in foreign affairs
1920’s became a decade of growth of business

5. II. Republicans in Command
Harding did not have much
experience in government
1. Promised a return to
“normalcy”
2. Thought U.S. should not
be involved in world affairs

6. 3. Opposed government
regulation of business
4. Believed the better that
business does is good
for everyone

7. Corruption in the White House
1. Harding appointed old
friends
a. “Ohio Gang”

8. b. Attorney General took bribes
Harry M. Daugherty – resigned after
Three years as Attorney General.
Accused of knowledge of kickbacks
from bootleggers. Later found not
guilty of the charges.

9. b. Head of Veterans Bureau stole millions
Charles Forbes - Was convicted of
conspiracy to defraud the U.S.
Government and sent to federal prison
in 1926

10. Teapot Dome Scandal Albert Fall was found guilty of
bribery in 1929, fined $100,000
and sentenced to one year in
prison, making him the first
Presidential cabinet member to
go to prison for his actions in
office.

11. Harding died of cerebral hemorrhage in 1923
a. Calvin Coolidge takes
over

12. Coolidge take oath

13. Support for Business
1. Coolidge also believed
government should not
interfere with business
a. Believed nation’s
prosperity depended on big
business

14. b. “The business of America is
New tax laws benefited industry
Ended regulations limiting size
of corporations
Coolidge’s policies created more
jobs and goods

15. Wages rose, workdays were shortened
Popularity of Coolidge soared
a. Easily won reelection in 1924

16. III. A Booming Economy
Booming economy
changed lives of Americans
1. New products
a. refrigerators, washing
machines, toasters,
automobiles

17. Ice Box

18. Early Refrigerator

19. Wash Bucket

20. Washing Machine

21. Toaster

22. Model T

23. Faster way to make products
Products became more affordable

24. B. The Automobile Industry
Automobile helped spur economy of 20’s
24 million cars on road in 1929

25. Henry Ford was behind the automobile boom
a. Designed Model T in
1908
b. Began producing cars on
assembly line in 1908
c. 9,000 car per day

26. Ford Assembly line

27. Spurred growth of other industries
rubber
glass
steel
oil
selling, servicing, parking, driving cars
roads
homes in suburban areas
diners, motels

28. 1920’s Motel

29. Car became symbol of America
6. Installment plan

30. Growing Confidence and Spending
More Americans invested in stock market
Value of stocks skyrocketed
a. $27 billion in 1925; $87
billion in 1929

31. 1920’s Stock Market

32. Other items being bought on
installment plan
4. Americans caught up in boom of spending
5. Supermarkets, shopping centers, fast food

33. Supermarket

34. Advertising became more sophisticated