Economic Overview. Post-war recession Unemployment = 10% Trade cut in half Prices for products dropped 20%

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2 Post-war recession Economic Overview Unemployment = 10% Trade cut in half Prices for products dropped 20% Unemployment 3%-4% Gross National Product (GNP) increased from $74.1 billion to $103.1 billion Per capita income increased from $641 to $847

3 Economic Overview What s driving the economy? New goods (cars, appliances, radios, etc.) Consumption (movies, etc.) Farmers suffering Wartime overproduction Wheat dropped 40%, corn 32% McNary-Haugen bill Would have created federal price supports for farmers Vetoed by President Cooldige BAD decade for farmers

4 A return to normalcy

5 President Ohio Governor James M. Cox Vice-President Ass t Secretary of the Navy Franklin D. Roosevelt Goals The Democrats Continue Progressivism Push for entry into League of Nations

6 The Republicans President Ohio Senator Warren G. Harding Vice-President Mass. Governor Calvin Coolidge Goals A Return to Normalcy Pro-business Conservative cultural values

7 WOMEN GET TO VOTE! The Election

8 The Harding Administration Harding = VERY weak Republicans wanted to control him Surrounded by some good people Charles Evans Hughes Secretary of State Andrew Mellon Secretary of Treasury Herbert Hoover Secretary of Commerce

9 The Harding Administration Herbert Hoover Food Relief (WWI) Associationalism Voluntary cooperation between business and government Stability in economy Data driven decisions

10 The Harding Administration Surrounded by some BAD people The Ohio Gang Harding s corrupt friends Charles Forbes Head of the Veteran s Administration Albert Fall Secretary of Interior Colonel Thomas Miller Patent Office

11 The Harding Administration Charles Forbes Veteran s Administration Job: help World War I vets Embezzled $250 million from the V.A. Served 20 months in prison

12 The Harding Administration Albert Fall Sec. of Interior (oversees federally owned land) Naval Reserves Elk Hills & Buena Vista, CA Teapot Dome, WY Leased for private drilling without bids Received $325,000 in bonds and cash as a bribe Spent one year in jail Known as Teapot Dome Scandal

13 The Harding Administration Colonel Thomas Miller Sold confiscated German patents Spent 18 months in prison What was Harding thinking?

14 The Harding Administration Harding takes western trip June - August, 1923 Dies of heart attack in San Francisco, August 2 nd Or did he die of something else...

15 The Harding Administration Coolidge becomes President Only president sworn in by father

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17 Coolidge for President Charles Dawes for Vice- President Coolidge quotes: The Republicans The man who builds a factory builds a temple. The man who works there worships there. The business of America is business.

18 West Virginia Senator John W. Davis President Nebraska Governor Charles Bryan Vice- President Democrats divided Economy doing well under Republicans The Democrats

19 Robert LaFollette of Wisconsin Platform National ownership of railroads Public ownership of utilities The Progressives Congress can override Supreme Court decisions Get rid of Electoral College

20 Women Other Issues Not much role in politics Given token positions within parties Became lobbyists on women s and children s issues Voter apathy 52% voter turnout

21 The Election

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23 Corporate Capitalism Modern management structure Upper management long range goals Middle management day to day production Factors leading to growth Mergers Research and development Education for professional managers

24 Finance Corporate Capitalism Wall Street More capital available for growth Labor Wages increase (buying power) Established work week (5 ½ days) welfare capitalism Owners create opportunities (no job protection) Goal: undercut unions Union membership drops by 2 million

25 Corporate Capitalism Role of the government Judicial Branch Harding and Coolidge appointed five conservative judges William H. Taft Chief Justice (1921) Decisions began to support business again Executive branch Laissez-faire Hands off Coolidge worked four hours a day...

26 Gross Domestic Product

27 Tax Rates in the 20 s

28 Employment 1920 s-1940 s

29 Per Capita Income

30 Haves vs. Have Nots

31 International Business Relations Trade increases significantly U.S. goes from debtor nation to creditor nation U.S. in other countries Establishes foreign offices and plants American companies invest in foreign countries and companies (mostly natural resources) American banks loan to foreign companies and countries High Tariffs 1922 Fordney-McCumber 1930 Hawley-Smoot (highest EVER)

32 Foreign Debt Problems Germany reparations payments Britain/France owe U.S. Dawes Plan Charles Dawes (Secretary of Treasury) U.S. loans $ to Germany Germany pays debts to Britain/France Britain/France pay debts to U.S.

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34 Philosophy during 1920 s Isolationism No involvement in Europe s problems Globalization peaceful, stable world = solid economy Use economic tools to stabilize Western Hemisphere (return to Dollar Diplomacy)

35 Washington Naval Conference 1921 Reduce naval armaments Ratios of battleships for major powers U.S. 5 Britain 5 Japan 3 Italy 1.75 France 1.75 Germany? Also called the Five- Power Treaty

36 Washington Naval Conference Nine-Power treaty respect territorial integrity in China Continuation of Open Door Notes Signed by U.S., Britain, France, Japan, China, Italy, Belgium, the Netherlands, and Portugal Four-Power treaty respect existing Pacific territories Signed by the U.S., Britain, Japan, and France

37 Kellogg-Briand Pact Frank Kellogg U.S. Secretary of State Aristide Briand French Foreign Minister

38 Kellogg-Briand Pact Began in 1925 Signed in 1928 Outlawed war as an instrument of national policy Signed by 63 nations Included Germany, Japan, and Italy

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