The Harding AdministrationThe Harding Administration

• Harding’s AppealHarding’s Appeal– ““Normalcy”Normalcy”

• The Ohio GangThe Ohio Gang– Cronyism Cronyism – ““the Teapot Dome Scandal”the Teapot Dome Scandal”

• An Undignified ExitAn Undignified Exit– Died on western trip, Aug 1923Died on western trip, Aug 1923– Self-Doubts confirmedSelf-Doubts confirmed

• Our worst President?Our worst President?

Cool Cal Takes OverCool Cal Takes Over• ““The Business of America is The Business of America is

Business”Business”– Return of Laissez-FaireReturn of Laissez-Faire

• Contrast with HardingContrast with Harding– Wise appointmentsWise appointments

• Andrew MellonAndrew Mellon• Herbert HooverHerbert Hoover

– Popular PoliciesPopular Policies• Balanced BudgetBalanced Budget• Supply-Side EconomicsSupply-Side Economics• Cooperative individualismCooperative individualism

A Booming Economy

• New Industries– Mass production and the assembly line

• Henry Ford’s Model T revolutionizes travel• Ford increase wages, shortens workday• Gas Stations and Garages

– Airline Industry• 1928: 48 airlines serving 355 American cities

– Radio• NBC and CBS set national network of Stations

The New Middle ClassThe New Middle Class• Consumer societyConsumer society– Professional managers and engineersProfessional managers and engineers– Increased disposable incomeIncreased disposable income

• electric razors, frozen foods, cleaning supplies electric razors, frozen foods, cleaning supplies

– Madison Ave: Rise of the Advertising Madison Ave: Rise of the Advertising IndustryIndustry

– Availability of CreditAvailability of Credit– Weakening UnionsWeakening Unions• Welfare Welfare capitalism and open shopscapitalism and open shops

• Innovations increase productionInnovations increase production– Supply shoots up, demand bottoms outSupply shoots up, demand bottoms out– Inflation, coupled with decreased Inflation, coupled with decreased

purchasing power fueled quiet depressionpurchasing power fueled quiet depression

• Farm Aid Falls ShortFarm Aid Falls Short– Fordney- McCumber Act raises tariffs, Fordney- McCumber Act raises tariffs,

closes foreign marketscloses foreign markets– Coolidge vetoes bill for government to by Coolidge vetoes bill for government to by

surplus and sell overseassurplus and sell overseas

Foreign PolicyForeign Policy• IsolationismIsolationism

– Americans weary from foreign Americans weary from foreign entanglementsentanglements

– U.S. Rejects League of Nations, but still U.S. Rejects League of Nations, but still activeactive

• War DebtWar Debt– Dawes’ Plan and circular debtDawes’ Plan and circular debt

• Washington Conference (1925)Washington Conference (1925)– Five Powers treaty: 10 year naval freezeFive Powers treaty: 10 year naval freeze– Colonial territories recognizedColonial territories recognized

• Kellogg-Briand Pact (1928)Kellogg-Briand Pact (1928)– Treaty to outlaw warTreaty to outlaw war