The Roaring Twenties
1919-1929
Section 1: Politics and Prosperity
I. Republicans in Office
• WWI helped economy a great deal
• When soldiers came home, there were not
enough jobs
• Economy faced serious recession
• Economic slump
• Democrats were out – Republicans were in
Return to the normal way of doing things –
like it was before the war!
A. Harding Takes Office
1.
Pro-business policies
a)
Mellon – secretary of treasury
i.
b)
balanced budget & lowered taxes
Hoover – secretary of commerce
i.
Expand American business overseas
"I can take care of my enemies, but its my friends that
keep me walking the floors at night"
B. Corruption & Scandals
1.
Harding brings in his good friends to be
his cabinet – “Ohio Gang”.
a.
Scandals resulted
i.
Veteran’s Bureau Scandal – Forbes stole
millions.
ii.
Teapot Dome Scandal – Albert Fall was
bribed by 2 oil to executives to lease them
government land
2. Harding dies of a heart attack – were
the scandals to blame?
The Teapot Dome Scandal
This cartoon, published in
1924, comments on the
scandal.
1. Why are the officials
running?
2. How will the White House
be affected?
3. What is the significance of
the rolling oil tank?
4. According to the
cartoonist, how will this
http://www.whyeverypresidentsucked.com/#
scandal affect the
government?
“You Lose”
B. Coolidge Takes Office
1.
“Silent Cal” very different than Harding
2.
Coolidge set out repair damage
a)
forced officials involved with scandals to
resign
3.
Ran for president when term was up and
won
II. Coolidge Prosperity
Also believed business prosperity would help all be prosperous.
Cut regulations on business
Named business leaders to government agencies
A. Industry Booms
1. “Coolidge Prosperity” – pro-business policies that
caused a rapid economic growth
2. Factories switch to consumer goods – recession ends!
3. Incomes rose = bought new consumer products
a) Refrigerators, radios, phonographs, vacuums
4. Advertisements boost sales – happiness depends on
owning
5. Installment buying – buying on credit
Coolidge Prosperity Continued
B. A Soaring Stock Market
1. stocks – shares in a company – make/lose
money depending on price of shares
2. rising stock prices – fortunes were made
3. Bull market – period of increased trading and
rising stock prices.
4. buying on margin – worked as long as stock
prices went up.
III. A Limited Role in World Affairs
Europeans expected Americans to take a major role in world affairs.
Harding & Coolidge id not want to commit the US to keeping world peace
Return to isolationism
A. Latin America
1.
Cut off from Europe during the war
2. US trade & investment increased
3. At times – the US got involved to protect economic
interests – Nicaragua revolution
4. Mexico & foreign owned oil companies – troops or
diplomat? – compromised worked out
Limited role in world affairs
continued
B. The Soviet Union
1. Lenin creates first communist state
2. Communism = economic system – wealth and property
owned by “community as a whole”
3. US refuses to recognize government but send $20 million to
aid famine
C. Pursuing Peace
1. People favored reduction of armed forces – disarmament
2. Harding & Coolidge backed peace efforts
3. Kellogg-Briand Pact – 62 nations outlawed war
a.
No means of actually keeping peace