The Roaring Twenties1919-1929

Section 1: Politics and Prosperity

• 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

I. Republicans in Office

A. Harding Takes Office

1. Pro-business policies

a) Mellon – secretary of treasury

i. balanced budget & lowered taxes

b) Hoover – secretary of commerce

i. Expand American business overseas

“A RETURN TO NORMALCY”Return to the normal way of doing things – like it was before the war!

B. Corruption & Scandals1. 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?

"I can take care of my enemies, but its my friends that keep me walking the floors at

night"

http://www.whyeverypresidentsucked.com/#

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 scandal affect the government?

“You Lose”B. Coolidge Takes Office

1. “Silent Cal” very different than Harding2. 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

A.Industry Booms1. “Coolidge Prosperity” – pro-business policies

that caused a rapid economic growth2. Factories switch to consumer goods –

recession ends!3. Incomes rose = bought new consumer

productsa) Refrigerators, radios, phonographs,

vacuums4. Advertisements boost sales – happiness

depends on owning5. Installment buying – buying on credit

Also believed business prosperity would help all be prosperous.Cut regulations on business

Named business leaders to government agencies

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.

Coolidge Prosperity Continued

A. Latin America1. Cut off from Europe during the war2. US trade & investment increased3. At times – the US got involved to protect

economic interests – Nicaragua revolution4. Mexico & foreign owned oil companies – troops

or diplomat? – compromised worked out

III. A Limited Role in World AffairsEuropeans 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

B. The Soviet Union1. Lenin creates first communist state2. Communism = economic system – wealth and

property owned by “community as a whole”3. US refuses to recognize government but send $20

million to aid famineC. Pursuing Peace

4. People favored reduction of armed forces – disarmament

5. Harding & Coolidge backed peace efforts6. Kellogg-Briand Pact – 62 nations outlawed war

a. No means of actually keeping peace

Limited role in world affairs continued