Mr. White’s US History 1

Main ideas: The Harding administration appealed to America’s

desire for calm, peace, and “normalcy” after the war, but resulted in scandal

Consumer goods fueled the business boom of the 1920s as America’s standard of living soared, though the prosperity had weaknesses and flaws.

Big questions: How did the scandals of Harding’s presidency lead

to a loss of credibility for Harding? How did Coolidge and Hoover’s administrations

use government to foster business and industry? What were signs of increased prosperity and a

higher standard of living in the United States? What were signs of weakness in the economy in

the 1920s?

Warren G. Harding’s administration worked to encourage peace and deal with post-war issues.

After the war, Warren G. Harding held the Washington Naval Conference to discuss naval disarmament between the great powers

The U.S. suggested that they, Britain, Japan, France, and Italy decrease naval armaments

All nations agreed to the Kellogg-Briand pact, but there was no way built into the agreement to enforce the treaty

As a result of the war, Britain and France had debts to the U.S. – had taken out loans to pay for the war Britain and France planned to use German

war reparations to pay these debts However, Germany was increasingly not

able to pay the war reparations When Germany defaulted on its loans,

France invaded the Rhineland in Germany To avoid further conflict, the United

States agreed to lend money to Germany, to pay Britain and France, to pay the United States

Harding’s administration was plagued by scandals that resulted in a loss of credibility.

Harding had a great deal of trouble as presidentHe appointed political cronies and friends to

his cabinet – the “Ohio Gang.”Many of these men got rich off government

graft, kickbacksHarding also had a great deal of trouble

understanding the problems of his presidency – often couldn’t make a decision

The government had set aside oil reserves at Teapot Dome, Wyoming, for the use of the U.S. Navy

Albert B. Fall, secretary of the interior, had the reserves transferred from the department of the Navy to the department of the Interior The reserves were leased to two private oil

companies Fall received nearly $400,000 in loans,

bonds, and cash as “gifts” Fall was found guilty of bribery – this

basically destroys Harding’s credibility Harding dies shortly thereafter and Calvin

Coolidge takes over as president

Coolidge and Hoover’s administrations used government to foster business and industry, which flourished.

Both Calvin Coolidge and his successor, Herbert Hoover, adopted pro-business government policiesUsed protective tariffs to foster American

businessWorked to keep taxes lowWorked to make credit available to business

that wanted to expand

The automobile industry grew in the United States at this time More and more people owned cars

More cars resulted in changes in society Rural families could go into the cities for shopping

and entertainment Families could now travel long distances for

vacations Women and young people found new freedoms with

the automobile Workers could now live further away from their jobs

– urban sprawl results The automobile came to be a cultural symbol

of prosperity

Henry Ford’s innovate assembly line methods had sped up mass productionCars could be produced cheaper – more

people could afford themCars could be produced more quickly –

expanding markets Ford’s Model T was a great example of

using these assembly-line methodsParts were completely interchangeable;

basically nothing was hand-craftedAs production increased, Ford streamlined

and offered the car only in black

The airplane also grew as a means of transportation

In the United States, the plane was first used to carry mail – first flight was a failure, but it caught on gradually

As the science of weather forecasting caught on, planes began to carry radios and navigational instruments

In 1927, Pan American began transatlantic flights

As industry flourished, America’s standard of living rose. However, many signs pointed to a superficial prosperity

Industry had grown during World War I and continued to be strong after the war

The United States produced more consumer goods as time went on

Electricity and electrical conveniences and appliances grew

Advertisers, to sell their products, began to use psychology and related methods to encourage people to buy their products

Even though the U.S. seemed prosperous, many signs pointed to weaknesses in the economy Consumer goods were growing; not as much

growth in heavy industries The income gap between the rich and poor grew

– sign of a weak, small middle class Iron and railroad industries weren’t making much

profit Farmers weren’t making much money, either,

and many had taken out loans to meet World War I production

Spurred by this consumer spending, more and more people began to buy goods on credit, instead of cash An installment plan was an arrangement to

buy a product and pay over time for an interest rate

More and more people used credit to buy goods; some went into debt that they couldn’t pay

Some economists pointed to this as the sign of a weak economy, but many people felt that the economy was strong.

Remember our big questions: How did the scandals of Harding’s presidency lead to a

loss of credibility for Harding? How did Coolidge and Hoover’s administrations use

government to foster business and industry? What were signs of increased prosperity and a higher

standard of living in the United States? What were signs of weakness in the economy in the

1920s? So…

Harding lost credibility as a president because… One way that Coolidge and/or Hoover fostered

business or industry was… One of the signs of increased prosperity and a higher

standard of living in the U.S. was… One of the signs of weakness in the economy in the

1920s was…