1. Normalcy and Good Times 1921 - 1929
Chapter 16
Normalcy and Good Times

2. Presidential Politics
The Harding Administration
Product of the Ohio political machine
Won the presidency in 1920 on the slogan “Return to Normalcy” – a return to normal life after WWI
Harding very popular
I wonder how many of these kids are gonna pass the quiz?
President Warren G. Harding

3. Presidential Politics
The Ohio Gang
Harding gave many government posts to friends and political allies who were former poker-playing buddies
These friends sold jobs, pardons, and medical supplies from VA hospitals
I heard that we won’t even get to use notes on the quiz!!
Oh Crap! What will we do now? Maybe we’ll actually have to study!!

4. Presidential Politics
Harding died of a heart attack
Teapot Dome and other Scandals
Sec of Interior, Albert Fall, allowed private companies to lease lands containing US Navy oil reserves
Fall convicted – sent to prison
AG Harry Daugherty – claimed immunity or freedom from prosecution
Forced to resign after taking bribes
The Presidents - Harding

5. Presidential Politics
The Coolidge Administration
Honest and capable
Took office upon death of Harding
Believed that prosperity rested on business leadership
Kept government out of the way of business
President Calvin Coolidge

6. Presidential Politics
The Election of 1924
Took Democrats 103 attempts to find a candidate that was acceptable – John Davis
Coolidge ran on slogan “Keep Cool with Coolidge”
Farm. Labor, and religious activists formed the Progressive Party and nominated Robert La Follette
Coolidge won the presidency

7. A Growing Economy American wages increased while work hours decreased
Mass Production – large-scale product manufacturing usually done by machinery created more supply and reduced consumer costs

8. A Growing Economy The Assembly Line
First adopted by carmaker Henry Ford
Divided operations into simple tasks that unskilled workers could do and cut unnecessary motion to a minimum
Building one car went from 12 hours to 93 minutes

9. A Growing Economy
The Model T – price in 1908 was $850, in 1914 $490, and in 1924 $295
Lower the cost of the car – increase volume of sales
Ford undercut unions by raising wages to $5 a day and reducing work hours to 8-hour shifts
Ford’s success brought competition from new companies General Motors and Chrysler
“You can get the car in any color you want as long as it’s black” – Henry Ford

10. This would be so cool if we actually had some gas!
A Growing Economy
The auto industry spurred growth in other industries including rubber, glass, nickel and lead
The automobile went from a rich man’s toy to a necessity for the middle class
Commuting became a new phenomenon
This would be so cool if we actually had some gas!

11. A Growing Economy Consumer Goods Industry
More disposable income spurred new products like electric razors, disposable tissue
Labor-saving devices like electric irons, vacuum cleaners, and washing machines
More emphasis on fashion and personal care like mouthwash, deodorants, and cosmetics

12. A Growing Economy The Airline Industry Wright Brothers Glenn Curtiss
Made innovations in design that allowed rigid wings and much larger aircraft
Invented first flying boat
Charles Lindbergh
1927 first solo flight across Atlantic
Plane named Spirit of St. Louis

13. A Growing Economy The Radio Industry
1926 National Broadcasting Company (NBC) established
By 1927 almost 700 radio stations dotted the country
1928 Columbia Broadcasting System (CBS) created coast-to-coast network
Radios provided entertainment in home and advertising

14. A Growing Economy
Higher wages / shorter hours created national spending spree
Easy consumer credit caused many Americans to go into debt to buy goods
Pre-1920’s debt was considered shameful- now attitudes changed
Many bought products on “installment plan”

15. A Growing Economy
Industries began to develop more complex structure requiring the hiring of managers
Caused the rise of business schools
Expanded the size of the middle class
Welfare Capitalism – companies allowed workers to buy stock, profit-share, and receive medical care and pensions

16. A Growing Economy
Unions lost influence due to more generous benefits from management
Businesses promoted the Open Shop – workplaces where employees were not required to join the union
Farmers left out of the prosperity of 1920’s
Technology allowed more crops but demand remained low
The Fordney-McCumber Act raised tariffs that actually decreased demand for US farm products

18. Policies of Prosperity
The Mellon Program
Andrew Mellon was Secretary of the Treasury under Harding, Coolidge, and Hoover
Mellon focused on reducing debt, balancing the budget, and lowering taxes
The idea that lowering taxes would cause people to spend more and thus the government would collect even more taxes is called supply-side economics
What are you looking at?
Secretary of the Treasury – Andrew Mellon

19. Policies of Prosperity
Secretary of Commerce - Herbert Hoover
Encouraged manufacturers and distributors to form their own trade associations which would voluntarily share information with the federal government - This was called cooperative individualism
This would reduce costs and promote economic efficiency
Secretary of Commerce Herbert Hoover

20. Policies of Prosperity
Trade and Arms Control
After WWI, America was the dominant economic power in the world
Most Americans did not want their country involved in world affairs. This was called isolationism
America was too powerful NOT to be a part of the world

21. Policies of Prosperity
The Dawes Plan (Charles Dawes)
European Allies owed US money from war but they could not make the payments
The Allies were making Germany pay reparations – payments as punishment for starting the war
Germany could not pay
US made deal that US would loan money to Germany to pay the Allies so the Allies could pay the US

22. Policies of Prosperity
The Washington Conference
Meeting of US and eight major countries to halt arms race
Secretary of State Charles Evan Hughes proposed a 10-year moratorium (a pause) on construction of warships
The Kellogg-Briand Pact – US and 14 nations signed pact to ban/outlaw war

23. Treaty Signers Terms Weaknesses
Four Power Treaty
US, Great Britain, France, Japan
All agreed to respect each other’s territory in the Pacific
Full and open negotiations in event of disagreements
Mutual defense of other co-signers not specified
Five Power Treaty
US, Great Britain, France, Japan, Italy
All agreed to freeze naval production at 1921 levels and halt production of large warships for 10 years
US and Great Britain would not build new naval bases in the Western Pacific
No restrictions on construction of smaller ships such as submarines and destroyers
Did not place restrictions on land forces
Nine Power Treaty
US, Great Britain, France, Japan, Italy, Belgium, China, The Netherlands, Portugal
All agreed to preserve equal commercial rights to China – a reassertion of the Open Door Policy
No enforcement of the terms of Open Door Policy specified

24. Quiz
President Coolidge’s simple and frugal manner contrasted with the booming, materialistic era called the…
Roaring Twenties
Harding’s Secretary of the Interior, Albert Fall, was implicated in what scandal?
Teapot Dome
What system of production was adopted by Henry Ford
The Assembly Line
To create consumers for their products, manufacturers turned to…
Advertising

25. Quiz
Henry Ford changed the automobile from a toy of the wealthy to a necessity of the…
Middle Class
What crippled the German economy after WWI?
Reparation payments
What was Hoover’s philosophy regarding business and government?
Cooperative individualism
Friends of President Harding who were appointed to government jobs were called…
The Ohio Gang

26. Quiz What raised tariffs to protect US businesses (but hurt farmers)?
The Fordney-McCumber Act
What was the policy of avoiding involvement in foreign affairs?
Isolationism
What is large-scale manufacturing usually be machinery called?
Mass production
A fancy word for a pause in something…
A Moratorium

27. Quiz What pact or agreement outlawed war? The Kellogg-Briand Pact
What was Harding’s campaign slogan in 1920?
Return to Normalcy
What is another word for freedom from prosecution?
Immunity