Business and Politics post WW1

The 1920’s

Tuesday, April 6, 2010

US Doesn’t Join League of Nations

• Oct. 1919 - Wilson suffers stroke while “campaigning” for US support of League of Nations.

• Senate rejects article ten of League of Nations treaty.

• Collective Security vs. Unilateralism?

Tuesday, April 6, 2010

US Economy post WW1

• US becomes world’s leading economic power.

• Switches from role of debtor to creditor.

• By 1920 world’s leading producer of coal, oil, and iron.

Tuesday, April 6, 2010

1920 Election

• Warren Harding (Republican) elected.

• “Return to Normalcy.”

• Return to “simpler” times before Progressive Era reforms and WWI.

Tuesday, April 6, 2010

Post -War Economy Slows

• Between 1919 and 1921 unemployment rises from 2% to 12%. (Why?)

• Oligopolies emerge to replace busted trusts.

• Profits decline in manufacturing, mining, and railroads.

Tuesday, April 6, 2010

Harding’s Response to Economic Slowdown

• Reduce taxes on corporations and wealthy individuals.

• Reduce tariffs.

• Limit the power of unions to go on strike.

Tuesday, April 6, 2010

Welfare Capitalism

• Big businesses attempt to counteract the appeal of Labor Unions.

• Corporations sponsor athletic teams, social functions, charities.

• Businesses begin throwing “company picnics” for employees.

Tuesday, April 6, 2010

Mass Consumerism

• Americans begin buying more consumer goods than ever before.

• In the 1920’s credit/ loans became easier for average Americans to get.

• Availability of credit increases the average American’s buying power.

Tuesday, April 6, 2010