Chapter 24: Section One: Boom Times

Chapter 24: Section One: Boom Times

Main Ideas

• President Harding promised a return to peace and prosperity.

• End of WW1 meant the world wanted peace and to recover

• Calvin Coolidge supported a probusiness agenda.​

• American business boomed in the 1920s.

• In 1928, Americans elected Herbert Hoover, hoping he would help good financial times continue. ​

• The end of WWI had an immediate impact on the American economy.

• Men returned to jobs, people rushed to buy products not available during the war and prices soared.

• Unemployment and inflation were at​ a high.

• Many blamed the Democratic Party for hard times and Republicans took advantage. ​

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​Boom Times: Return to Peace and Prosperity

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• Republican Warren G. Harding (P) and Calvin Coolidge (VP) ​vs Democrat James M. Cox and Franklin D. Roosevelt (VP).

• With a promise to return to normalcy Harding won with about 60% popular vote.

• Trickle down theory - tax cut for the wealthy would give them an incentive to invest in new businesses and c​reate new jobs for Americans.

• The economy did bounce back.

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Election of 1820

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Multiple Choice

What was Harding's main goal during his presidency?

• to outlaw any future wars with Europe

• to prevent future scandals from occurring

• to help his wealthy friends come to power

• to improve the economy of the United States

Harding appointed many of his trusted friends to high positions​. Some of these men used their positions to gain wealth through illegal means.

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"I have no trouble with my enemies, but my friends keep me walking the floors at night."

- Warren Harding​

• Secretary of the Interior Albert Fall accepted large sums of money and valuable gi​fts from private oil companies in exchange, Fall allowed the companies to control government oil reserves in Elk Hills, California and Teapot Dome, Wyoming.

• Fall was convicted for​ accepting bribes, he is the 1st cabinet member to ever be convicted of a crime while in office.

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​Teapot Dome Scandal

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​The Supreme Court ruled that the oil leases had been corruptly obtained. The Court invalidated the Elk Hills lease in February 1927, and the Teapot Dome lease in October. Both reserves were returned to the Navy.

Teapot Dome Scandal

• Just before details of the Teapot Dome scandal became public, President Harding died of a heart attack.

• VP Calvin Coolidge became President.

• Coolidge fired all officials who had been involved in bribery of Harding' s​ administration.

• Won the presidential election in 1924.

• Pro-business president​

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Coolidge's Pro-business Administration

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• Coolidge continued with tax cuts for the wealthy​.

• Supported raising tariffs on foreign goods to decrease competition with domestic products.

• Trade with other countries increased under Coolidge, many nations depended on trade with the U.S. to rebuild economies after WWI.

• Not everyone profited-​ Coolidge vetoed congressional attempts to provide aid to farmers through the regulation of prices.

Calvin Coolidge

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• ​1928- The U.S. and 14 other nations signed this agreement that outlawed war.

• 62 nations eventually accepted the​

  pact.

• There was no way to enforce the pact but most countries were trying to avoid another major global conflict.

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Kellogg-Briand Act​

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• ​The 1920s were years of rapid economic growth in the U.S.

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• Between 1921 and 1929, U.S. manufacturing nearly d​oubled.

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• Jobs and wages increased.

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• New products changed​ the way Americans lived.

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​Business Booms

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• ​​Henry Ford, a business leader from Detroit, helped change Americans access to affordable cars.

• Model T - a sturdy, reliable car nicknamed the Tin Lizzie. ​

• In 1908 it sold for $850 but by 1925 if cost just $290.

• Every car was exactly the same and only came in black.

• Moving Assembly line -​ used conveyer belts to move parts and partly assembel cars from one group of workers to another.

• Workers stood in one plance and did a specialized job. ​

​Ford's Model T​

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• 1914 Ford raised the wages for his factory workers to $5 a day and lowered the workday to 8 hours.

• Ford would hire African Americans and people with disabilities.

• Ford believed the wage increase would keep his employees from quitting.

• ​Ford allowed customers to buy cars using an installment plan (let people pay a small amount of the cost every month until the car was paid off.

• Changed the way Americans lived - long drives, take jobs farther away and a sense of freedom. ​

Henry Ford

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• ​Americans found work making steel for car bodies, rubber for tires, glass for window.

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• Millions spent to improve road safety, paving highways and building new bridges.

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• Roadside businesses opened such as gas stations, restaurants and motels, car repair shops and car insurance companies.

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​Growing Industries

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​Coolidge's Secretary of Commerce Herbert Hoover ran for Republicans. He campaigned he would maintain economic prosperity. Hoover defeated Democrat Alfred E. Smith with 58% of the popular vote.

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Herbert Hoover Elected in 1928

Multiple Choice

How was Henry Ford's treatment of his employees revolutionary for the time period?

• He allowed them to work at a slower pace.

• He let them join labor unions and go on strikes.

• He hired minorities and people with disabilities.

• He gave them part ownership in his corporation.

Multiple Choice

Why was there such strong public support for the Republican Party in the 1928 presidential election?

• There was continued economic prosperity.

• There was support given to the unemployed.

• There was a clear separation of church and state.

• There was an emphasis on issues related to city dwellers.

Multiple Choice

What was the name of the first Ford motor car?

• The Ford T

• The T Model

• The Model T

• The T Ford

Multiple Choice

Which of the following best describes the assembly line manufacturing process?

• Each product is fully manufactured one at a time

• Products are made one step at a time as they pass down a line

• Products are manufactured by robots

• Products are made by people who stand in a line

Multiple Choice

Where was Ford's original plant?

• In New York

• In Chicago

• In Milwaukee

• In Detroit