Chapter 16 Normalcy and Good Times (1921-1929)



Chapter 16 Normalcy and Good Times (1921-1929)

Chapter 16 Section 1---Presidential Politics

I. The Harding Administration (pp. 510-512)

A. 1920 Presidential Campaign---“Return to Normalcy”

B. Harding’s Cabinet:

1. Charles Evans Hughes—Sec. of State

2. Herbert Hoover---Sec. of Commerce

3. Andrew Mellon---Sec. of Treasury

4. Ohio Gang---Ohio poker playing friends who used their government positions to sell jobs, pardons, & immunity from prosecution

C. Scandals during the Harding presidency:

1. Teapot Dome Scandal

a. Sec. of Interior Albert Fall allowed private interests to lease lands containing U.S. Navy oil reserves at teapot Dome, Wyoming

b. Fall received bribes totaling over $300,000

c. Fall became the 1st cabinet member sent to prison

2. Attorney General Daugherty refused to turn over files & bank records for a German-owned American company

a. Bribe money ended up in a bank account controlled by Daugherty

b. Daugherty refused to testify under oath, claiming immunity, on the grounds that he had confidential dealings with the President

c. President Coolidge demanded Daugherty’s resignation

II. The Coolidge Administration (pp. 512-513)

A. Focus: Prosperity through Business leadership with little government intervention

B. Election of 1924: Coolidge defeated John Davis

1. Republicans associated with the prosperity of the times

Chapter 16 Section 2-------------A Growing Economy

I. The Rise of New Industries (pp. 514-518)

A. Mass Production—large-scale manufacturing that increased the supply of goods & decreased costs

1. Assembly Line (Henry Ford)---divided operations into simple tasks that unskilled workers could perform (Model T went from $850 to $295)

B. Social impact of the Automobile:

1. Small businesses like garages & gas stations opened

2. Petroleum industry expanded

3. People could live farter away from work

4. Isolation of rural life ended

1 The Consumer Goods Industry

5. electric razors, household cleaning supplies, labor-saving appliances (vaccum cleaners, refrigerators, washing machines, etc)---Made life easier for Americans

2 The Airline Industry

6. 1919—Post Office expanded airmail service

7. 1927—Charles Lindbergh—1st solo flight across the Atlantic (New York to Paris)

8. 3. 1928—48 airlines serving 355 American cities

1 The Radio Industry

9. 1926 National Broadcasting Company (NBC)—permanent network of radio stations to distribute daily programming

10. 1928—Columbia Broadcasting System (CBS)—set up coast to coast stations to compete with NBC

II. The Consumer Society (pp. 518-519)

A. Higher wages & shorter workdays led to an economic boom as Americans traded thrift for their new role as consumers

B. Americans believed they could pay back what they owe at a later time (Easy Credit----Installment Payments)

C. Advertising was used to convince Americans that they needed new products

1. ads linked products to convenience, leisure, success, fashion, & style

3 1920s many businesses hired professional managers & engineers

2. Help to expand the size of the Middle Class

D. Welfare Capitalism---employees were able to purchase stock, participate in profit sharing, & receive benefits (medical care & pensions)

E. Unions lost membership & influence in the 1920s

1. Open Shop—workplace where employees were not required to join a union

***With benefits covering some of their basic needs, workers were able to spend more of their income***

III. The Farm Crisis Returns (pp. 519-520)

A. American Farmers did not share in the prosperity of the 1920s

1. Prices dropped, while costs increased

a. Overproduction led to prices dropping

b. Higher tariffs caused farmers not to be able to sell overseas which caused prices to fall

B. Helping Farmers:

1. McNary-Haugen Bill

a. proposed the federal government to buy surplus crops & sell them abroad while protecting the American market with a high tariff

b. President Coolidge vetoed the bill because it encouraged the farmers to produce even more which the government would be unable to sell in a glutted overseas market

4 American Farmers remained in a recession throughout the 1920s

Chapter 16 Section 3-----------------The Policies of Prosperity

I. Promoting Prosperity (pp. 521-522)

A. Mellon Program—3 Goals

1. Balance the Budget

2. reduce the government’s debt

a. Federal debt was reduced by $8 Billion from 1921 to 1929

3. cut taxes

a. Supply Side Economics---lower taxes would allow businesses & consumers to spend and invest their extra money, resulting in economic growth

b. The government would collect more taxes at a lower rate

II. Trade and Arms Control (pp. 522-524)

***U.S. dominant economic power in the world***

A. Isolationism----America wanted to be left alone to pursue prosperity

1. U.S. too powerful & interconnected in international affairs to remain isolated

2. promote peace through agreements with individual countries rather than doing so through the collective efforts of the League of Nations

B. Dawes Plan

1. American Banks make loans to Germany so that they could make reparation payments

2. France & Britain agreed to accept less reparations & pay more on their war debts

5 Washington Conference (1921)—Sec. of State Charles Evans Hughes

3. Proposed a 10 year moratorium on the construction of major new warships

4. Proposed a list of warships in each country’s navy to be destroyed

5. Great Britain, Netherlands, France, Italy, China, Japan, Belgium, Portugal, & the U.S.)

6. 3 Agreements out of the Washington Conference:

|Treaty |Signers |Terms |Weaknesses |

|Four-Power |U.S., G.B., |1. agreed to respect the |1. Mutual defense |

| |France, Japan |others’ territory in the |of other co-signers |

| | |Pacific |not specified |

| | |2. Full & open negotiations | |

| | |in the event of disagree- | |

| | |ments | |

| | | | |

|Five-Power |U.S., G. B., Fr., |1. agreed to freeze naval |1. No restrictions on |

| |Japan, Italy |production at 1921 levels |smaller battle craft |

| | |& halt production of |(Subs & naval destroyers |

| | |larger warships for 10 | |

| | |years |2. No restrictions on |

| | | |ground forces |

| | |2. U.S. & G. B. would not | |

| | |build new naval bases in | |

| | |the western Pacific | |

|Nine-Power |U.S., G. B., Fr., |1. agreed to preserve equal |1. No enforcement of the |

| |Japan, Italy, |commercial rights in |terms of the “Open |

| |Belgium, China, |China—reassertion of |Door Policy” specified |

| |Portugal, the |The “Open Door “ policy | |

| |Netherlands | | |

C. Kellogg-Briand Pact(1928)

1. Outlawed war & agreed to settle all disputes in a peaceful way

2. Problem: No way of enforcing it (Not Binding)

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