Ch. 14 Politics and Prosperity “The Roaring Twenties”
President Harding  <ul><li>New President in 1920 called for Americans to return to “normalcy”? </li></ul><ul><ul><li>Lenin...
Red Scare and Strikes <ul><li>Communists like Lenin asked the workers of the world to unite and strike. </li></ul><ul><ul>...
Teapot Dome Scandal <ul><li>Harding's presidency was rocked by scandals. </li></ul><ul><ul><li>Officials stole funds, take...
1928 <ul><li>Kellogg-Briand Pact </li></ul><ul><ul><li>Coolidge’s last act before retiring. </li></ul></ul><ul><ul><ul><li...
Business Boom <ul><li>Consumer Economy </li></ul><ul><ul><li>One that depends on a large amount of spending by consumers. ...
America discovers credit! <ul><li>Installment plans? </li></ul><ul><ul><li>Interest rates? </li></ul></ul><ul><ul><ul><li>...
Henry Ford and the Assemble Line <ul><li>Henry Ford? </li></ul><ul><ul><li>Assembly line? </li></ul></ul><ul><ul><li>Model...
Boom or Bust <ul><li>Boom </li></ul><ul><ul><li>Businesses were created around the automobile industry. </li></ul></ul><ul...
Prosperity <ul><li>Hoover (Rep.) easily wins election in 1928. </li></ul><ul><ul><li>Laissez Faire policy? </li></ul></ul>...
Farmers <ul><li>After WWI the demand for food productions dropped. </li></ul><ul><ul><li>Farmers could not repay their loa...
Uneven Prosperity <ul><li>1929 </li></ul><ul><ul><li>200 companies controlled 49% of American industry.  24,000 families (...
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Politics And Prosperity

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Politics And Prosperity

  1. 1. Ch. 14 Politics and Prosperity “The Roaring Twenties”
  2. 2. President Harding <ul><li>New President in 1920 called for Americans to return to “normalcy”? </li></ul><ul><ul><li>Lenin, Communism, & Red Scare? </li></ul></ul><ul><ul><li>Schenck v. U.S.? </li></ul></ul><ul><ul><li>Palmer Raids of 1920? </li></ul></ul><ul><ul><li>Sacco and Vanzetti? </li></ul></ul>
  3. 3. Red Scare and Strikes <ul><li>Communists like Lenin asked the workers of the world to unite and strike. </li></ul><ul><ul><li>This Red Scare frightened many Americans. </li></ul></ul><ul><ul><ul><li>Steel Strike, 1919? </li></ul></ul></ul><ul><ul><ul><li>Boston Police Strike? </li></ul></ul></ul><ul><ul><ul><li>How did many Americans view these strikes? </li></ul></ul></ul><ul><ul><ul><ul><li>Quota system? </li></ul></ul></ul></ul>
  4. 4. Teapot Dome Scandal <ul><li>Harding's presidency was rocked by scandals. </li></ul><ul><ul><li>Officials stole funds, taken bribes, secretly approved government contracts for payment. </li></ul></ul><ul><ul><ul><li>2 officials committed suicide over this! </li></ul></ul></ul><ul><li>Secr. Of Interior Albert Fall gave oil drilling rights on government land (set aside for conservation in Teapot Dome, Wyoming) to private companies for $300,000. </li></ul><ul><ul><li>Harding dies of a stroke from the pressure from these scandals. </li></ul></ul><ul><ul><li>V.P. Calvin Coolidge takes office. </li></ul></ul><ul><ul><ul><li>Herbert Hoover was secr. Of Commerce. </li></ul></ul></ul><ul><ul><ul><ul><li>What warning did he give Coolidge about the stock market? </li></ul></ul></ul></ul>
  5. 5. 1928 <ul><li>Kellogg-Briand Pact </li></ul><ul><ul><li>Coolidge’s last act before retiring. </li></ul></ul><ul><ul><ul><li>What did it say? </li></ul></ul></ul><ul><li>Hoover (Rep) wins election in 1928. </li></ul><ul><ul><li>Food Admin. Under Wilson. </li></ul></ul><ul><ul><li>Secr. Of Commerce under Harding and Coolidge. </li></ul></ul><ul><ul><ul><li>Was he qualified? </li></ul></ul></ul><ul><ul><ul><li>Laissez Faire attitude? </li></ul></ul></ul>
  6. 6. Business Boom <ul><li>Consumer Economy </li></ul><ul><ul><li>One that depends on a large amount of spending by consumers. </li></ul></ul><ul><ul><ul><li>Christmas? </li></ul></ul></ul><ul><ul><ul><ul><li>150 billion </li></ul></ul></ul></ul><ul><ul><ul><li>Halloween </li></ul></ul></ul><ul><ul><ul><ul><li>5 billion </li></ul></ul></ul></ul><ul><ul><ul><li>Why? </li></ul></ul></ul><ul><ul><ul><ul><li>Gas prices down, stock prices are up, and worker pay/bonuses are up! </li></ul></ul></ul></ul>
  7. 7. America discovers credit! <ul><li>Installment plans? </li></ul><ul><ul><li>Interest rates? </li></ul></ul><ul><ul><ul><li>Rates jumped from 11-40%. </li></ul></ul></ul><ul><ul><ul><li>Credit purchases in 1920’s: </li></ul></ul></ul><ul><ul><ul><ul><li>60% cars </li></ul></ul></ul></ul><ul><ul><ul><ul><li>70% furniture </li></ul></ul></ul></ul><ul><ul><ul><ul><li>80% vacuum cleaners, radios, refrigerators </li></ul></ul></ul></ul><ul><ul><ul><ul><li>90% of washing machines </li></ul></ul></ul></ul><ul><ul><ul><li>General Electric profits go from 1 billion to 2.3 billion. Why? </li></ul></ul></ul><ul><ul><ul><li>‘ Mass Media’ advertisements become common. </li></ul></ul></ul><ul><ul><ul><ul><li>Use of celebrities and enhancing consumer image? </li></ul></ul></ul></ul><ul><ul><ul><li>GNP goes up from 1% to 6%? </li></ul></ul></ul>
  8. 8. Henry Ford and the Assemble Line <ul><li>Henry Ford? </li></ul><ul><ul><li>Assembly line? </li></ul></ul><ul><ul><li>Model T and A? </li></ul></ul><ul><ul><ul><li>Car completed every 24 seconds. </li></ul></ul></ul><ul><ul><ul><ul><li>Vertical Consolidation? </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Ore, glass, railroads, steel mills… </li></ul></ul></ul></ul></ul><ul><ul><ul><li>Prices fell from $490 to $390. Why? </li></ul></ul></ul><ul><ul><ul><li>Chrysler and GM were also car manufacturers at this time as well. </li></ul></ul></ul><ul><ul><ul><ul><li>Are they still around today? </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Who is there biggest competition today? </li></ul></ul></ul></ul>
  9. 9. Boom or Bust <ul><li>Boom </li></ul><ul><ul><li>Businesses were created around the automobile industry. </li></ul></ul><ul><ul><ul><li>Like what? </li></ul></ul></ul><ul><ul><ul><li>The Airline industry took-off at this time as well. </li></ul></ul></ul><ul><ul><ul><ul><li>Delta, American, and United Airlines all started in the 1920’s. </li></ul></ul></ul></ul><ul><ul><li>Bust </li></ul></ul><ul><ul><ul><li>Who did not profit from the 1920’s economic boom? </li></ul></ul></ul><ul><ul><ul><ul><li>Farmers? </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Railroads? </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Clothing manufacturer? </li></ul></ul></ul></ul>
  10. 10. Prosperity <ul><li>Hoover (Rep.) easily wins election in 1928. </li></ul><ul><ul><li>Laissez Faire policy? </li></ul></ul><ul><li>Wonderful Prosperity? </li></ul><ul><ul><li>Stock prices worth 87 billion </li></ul></ul><ul><ul><li>Wages increased 40% </li></ul></ul><ul><li>Books </li></ul><ul><ul><li>Everyone ought to be rich, 1929 (Raskob)? </li></ul></ul><ul><ul><li>The Man Nobody Knows, 1925 (Barton)? </li></ul></ul>
  11. 11. Farmers <ul><li>After WWI the demand for food productions dropped. </li></ul><ul><ul><li>Farmers could not repay their loans to banks. </li></ul></ul><ul><ul><ul><li>Installment buying? </li></ul></ul></ul><ul><ul><li>6000 rural banks failed. </li></ul></ul><ul><ul><ul><li>What does it mean when a bank fails? </li></ul></ul></ul><ul><ul><li>Pres. Coolidge vetoed a farm relief bill aimed at increasing farm prices to help farmers make money. </li></ul></ul><ul><ul><ul><li>Why would he veto this? </li></ul></ul></ul><ul><ul><ul><li>Republicans and the Laissez faire policy? </li></ul></ul></ul><ul><ul><ul><ul><li>Why would this hurt Pres. Hoover in 1929? </li></ul></ul></ul></ul>
  12. 12. Uneven Prosperity <ul><li>1929 </li></ul><ul><ul><li>200 companies controlled 49% of American industry. 24,000 families (0.1 %of pop.) controlled 34% of total savings. </li></ul></ul><ul><ul><ul><ul><li>What does this mean? </li></ul></ul></ul></ul><ul><ul><ul><ul><li>“ Don’t put all your eggs in one basket”? </li></ul></ul></ul></ul><ul><ul><ul><li>Credit spending? </li></ul></ul></ul><ul><ul><ul><li>Stock Market? </li></ul></ul></ul><ul><ul><ul><ul><li>Speculation? </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Brokers? </li></ul></ul></ul></ul><ul><ul><ul><li>American products had been overproduced. </li></ul></ul></ul><ul><ul><ul><ul><li>Supply and demand pricing? </li></ul></ul></ul></ul>

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