The Roaring 1920s
A Turbulent Decade
1920s
• Going to break the 1920s up into three
groups
• Politics
• Economics
• Culture
Harding’s Administration
• “Return to Normalcy” Harding
campaigned on this slogan, which
suggested a return to the American way of
life before World War I. For Harding’s
party, the Republicans, “return to
normalcy” also meant turning away from
Progressivism and toward a pro-business
attitude with little corporate oversight, high
protective tariffs, and tax cuts for the rich.
Harding’s Administration
• Unwise Appointments Harding’s
appointment of friends and political allies
to government positions resulted in
corruption and graft on a large scale.
Harding’s friends, known as the “Ohio
Gang,” profited by selling government jobs
and materials.
Harding’s Scandals
• Harding made appointments to the cabinet
• Supreme Court Justice Charles Evans
Hughes – secretary of state
• Herbert Hoover – secretary of commerce
• Andrew Mellon – secretary of treasury
• These three men played key roles in
supporting and shaping the economic
prosperity of the 1920s
Harding’s Scandals
• Other of Harding’s appointments were
disasters
• Gave high positions to friends and allies
from Ohio
• The “Ohio Gang”
• Harding felt more comfortable around
them – poker playing, beer drinking
• Didn’t like being around serious people
like Hoover
Harding’s Scandals
• Ohio Gang used their positions to sell
government jobs, pardons and protection
from prosecutors
• Forbes sold medical supplies from
veteran’s hospitals for $250 million and
kept the money for himself
• This upset Harding and he felt he was
being betrayed by his friends
Harding’s Administration
• Scandals Secretary of the Interior Albert
Fall secretly leased oil-rich lands to
individuals. The so-called “Teapot Dome
Scandal” resulted in Fall’s imprisonment.
Charles Forbes, head of the Veterans
Bureau, sold items intended for the military
for a profit. Attorney General Harry
Daugherty profited illegally by selling a
German chemical company held by the
United States after World War I.
Harding’s Administration
• Harding’s Death On a tour of the Western
states in 1923, Harding died. Vice
President Calvin Coolidge took the oath of
office.
Harding’s Scandals
• June 1923 Harding toured the west
• Had a heart attack and died – Aug 2, 1923
• This happened shortly before the scandal
on Forbes came out
• Calvin Coolidge, VP, took office
Discussion
• What do the events that occurred
during Harding’s administration
suggest about his leadership?
• (He was overly trusting of friends, corrupt,
and seemed unable to take responsibility.)
Page 209
• Look at the political cartoon on page 209
• What does the image in the “Bargain
Day in Washington” cartoon suggest
about the government?
• (it suggests that government is for sale to
the highest bidder.)
Teapot Dome
• Teapot Dome – 1922
• Secretary of the Interior – Albert B Fall
• Allowed private interest to lease lands
containing US Navy oil reserves at Teapot
Dome, Wyoming and Elk Hills, CA
• Fall received private bribes over $300,000
Teapot Dome
• Senate spent most of the 1920s to
investigate this
• Supreme Court invalidated the leases
• 1929 – Secretary Fall became the 1st
cabinet officer in American history to go to
prison
More Scandal
• Attorney General Harry Daugherty
• During WWI the US had seized a German
owned company as enemy property
• A German agent bribed a politician to get
the company and chemical patents
• Part of the money on the bribe showed up
in Daugherty’s bank account
More Scandal
• Daugherty refused to turn over files and
bank records
• Refused to testify under oath – claimed
immunity on the grounds he had
confidential dealings with the President
• This upset Calvin Coolidge who
demanded Daugherty resign
“Silent Cal”
• Coolidge was different from Harding
• Asked some trustworthy cabinet members
from Harding to remain but mostly
separated himself from the Harding
administration
• He felt prosperity came from business and
that the government should stay out of
business
“Silent Cal”
• While finishing Harding’s term he avoided
crisis and adopted policies to help keep
the nation prosperous
• Won the Republican Nomination for the
1924 election
“Silent Cal”
• “Keep Cool with Coolidge” was his slogan
• Promised to continue with the policies that
were bringing prosperity to the US
• Coolidge won by a landslide
The 1924 Election
•
Calvin Coolidge (R) wins
• Harding’s Vice President
• Won ’24 Election in a landslide over John E. Davis (D) and
Robert La Follette (P)
•
“Silent Cal”
•
Pro-Business
• Opposed all legislation designed to help workers or farmers
• Revenue Act of 1926
– Cut taxes for wealthy
• Laissez-Faire Economics
• Installment Plan
– Buy on credit
•
Didn’t run for 2nd term
Guiding Question
• What government policies helped the
economy recover from the postwar
recession?
Economic Policies of the
1920s
• Coolidge Policy Coolidge retained the
most respected cabinet members,
Secretary of the Treasury Andrew Mellon
and Secretary of Commerce Herbert
Hoover.
Economic Policies of the
1920s
• Business Principles Mellon applied
business principles to correct the nation’s
budget deficit, reduce government debt,
and cut taxes. He established the Bureau
of the Budget and the General Accounting
Office to track spending.
Economic Policies of the
1920s
• Trickle Down Mellon argued that lower
tax rates would help the economy grow.
Americans would earn more money, and
the government would actually collect
more taxes at the lower rate. This was
known as supply-side economics, or the
“trickle-down” theory.
Economic Policies of the
1920s
• Lower Taxes In 1920 most taxpayers paid
4 percent federal income tax, while
wealthy Americans in the highest bracket
paid 73 percent. By 1928 most Americans
paid 0.5 percent and the wealthiest
Americans paid 25 percent.
Economic Policies of the
1920s
• Hoover’s Beliefs Secretary of Commerce
Herbert Hoover wanted businesses to
form associations to share information with
the federal government, what he called
“cooperative individualism.”
Policies of Prosperity
• Herbert Hoover and Andrew Mellon – part
of Harding’s original cabinet
• Responsible for policies that contributed to
the economic growth and prosperity of the
1920s
• Great debt at the start of 1920 from the
war
• Mellon was a successful banker was
secretary of treasury
Policies of Prosperity
• Mellon became the chief architect of
economic policy and served as secretary
of the treasury for three Republican
presidents
• Mellon’s goals:
• 1. balance the budget
• 2. Reduce the government’s debt
• 3. Cut taxes
Policies of Prosperity
• Thought these rules would promote
prosperity
• Mellon felt the government should adopt
business like principles
Policies of Prosperity
• 1921 Mellon convinced Congress to create
Bureau of the Budget
– Prepare a unified federal budget
• General Accounting Office
– To track spending
• Mellon cut federal spending and taxes
Policies of Prosperity
• Argued that high tax rates actually
reduced the amount of money the
government collected
• Lower taxes means businesses and
consumers would have more money to
spend – economy would grow
• Economy grows – Americans earn more
money
• Supply-side economics
Policies of Prosperity
• Herbert Hoover – promote economic
growth
• Cooperative individualism – businesses
form trade associations that would
voluntarily share information with the
federal government
• This system would reduce costs and
promote economic efficiency
Policies of Prosperity
• Bureau of Foreign and Domestic
Commerce – find new markets for
companies
• Bureau of Aviation – regulate and promote
airline industry
• Federal Radio Commission – help the
young radio industry by regulating radio
frequencies and the power of transmitters
Trade and Arms Control
• Wartime allies owed the US more than
$10 billion after WWI
• 1920s – US was dominate economic
power in the world
• Secretary of State Charles Evan Hughes –
the nation tried to use its economic power
to promote peace and stability
Trade and Arms Control
• Most Americans favored isolationism –
staying out of the dangerous politics of
Europe
• Some thought we were isolated – we had
not signed the Treaty of Versailles and
had not joined the League of Nations
• Permanent Court of International Justice –
opened in 1921 but US refused to join it
Trade and Arms Control
• US was too powerful and too
interconnected to truly be isolated
• US was trying to promote peace by using
economic policies and arms control
agreements
The Dawes Plan
• Former Allies struggled making payments
• High US tariffs made it tougher because
they couldn’t sell their products easily in
the US
• Germany economy was struggling
because they were paying reparations
The Dawes Plan
• US knew it was vital the European
economies be strong so they could buy
US exports
• 1924 – Charles G Dawes negotiated an
agreement with France, Britain and
Germany
The Dawes Plan
• US Banks would loan money to Germany
• Germany would pay reparations
• Britain and France would accept less
reparations and pay back their debts
The Washington Conference
• Post WWI – countries are involved in a
naval arms race
• Conference – Nov 12, 1921 – for
disarmament
• Secretary of State Charles Evans Hughes
proposed a 10 year moratorium – halt on
construction of new warships
• Proposed a list of warships already
existing that should be destroyed
The Washington Conference
• Five-Power Naval Limitation Treaty –
Britain, France, Italy, Japan and the US
formalized Hughes’ proposal
• Conference did nothing to limit land forces
• Angered Japan because it required them
to maintain a smaller navy than the US
and Great Britain
• Gave America hope to look forward to
peace and prosperity
Abolishing War
• This gave hope to people that written
agreements could end war altogether
• Kellogg-Briand Pact – all signing nations
agreed to abandon war and settle disputes
by peaceful means
• Kellogg-Briand Pact and Dawes Plan were
most notable foreign policy of Coolidge
In your Journal, complete this chart.
Republican Policies to
Encourage Economic Growth
Positive and Negative Effects
of Republican Policies
Positive Effects
1.
To Reduce Debt::
1.
2.
2.
Negative Effects
1.
To Promote Economic Growth:
1.
2.
3.
4.
Chapter 8 Section 2
212-216
New Industries
• 1920s automobiles became an accepted
part of life
• 1925 – Muncie, Indiana
– 21 out of 25 families owned cars but did not
have bathtubs with running water
• “you can’t ride to town in a bathtub”
• Standard of living was rising
New Industries
• Per capita earnings soared 22% in 6 years
• Wages increased, work hours decreased
• Steel industry cut days from 12 hours to 8
hours
• 1926 – Henry Ford cut work week from 6
days to 5 days
• International Harvester introduced a 2
week paid vacation program
New Industries
• Mass production was soaring
• Workers could be paid more and
consumer goods they bought cost less
Scientific Management
• Businesses
experiment to
increase production
• Work broken down
into smaller tasks
• Reduced product
cost
Assembly Line
•
•
•
•
Henry Ford
Each person had 1 job
Unnecessary tasks are cut
Highland Park, Michigan – 1913 – 1st
assembly line
• 1914 – workers were building a car every
93 minutes
• 1925 – a new car every 10 seconds
Assembly Line
•
•
•
•
•
Product on Assembly Line was Model T
“Tin Lizzie”
“Flivver”
1908 – Model T sold for $850
1914 – sold for $490 due to mass
production
• 1917 - $360
• 1924 - $295
• Selling millions of cars
Assembly Line
• Ford – lower the cost per car and sell more
• Imitators spawned off Ford’s production
methods
• Mid-1920s – General Motors and Chrysler –
competed with Ford
• Other industries – rubber, plate glass, nickel
and lead
• Auto industry consumed 15% of nation’s steel
and led to huge expansion of the petroleum
industry
High Wages for Workers
• Ford doubled worker’s pay in 1914
• Reduced workday to 8 hour shifts
• Ford increased worker’s loyalty to
undercut union organizers
• “Sociological Department” – requirements
workers of Ford had to meet
– Couldn’t rent space in your home to nonfamily members
– Investigators visited worker’s homes to be
sure they didn’t break the rules
Henry Ford
• Henry Ford –
Model T
• Assembly Line –
sped up production
• Repetitive, dull,
and tiring work
• Reduced workday
(8 hours), raised
wages ($5/day)
• Employees must
have character
Social Impact of the Car
•
•
•
•
•
•
Revolutionized life
Rural life was no longer isolated
More people could live farther from work
Auto-commuter
Could drive from home to workplace
Trolley became less popular
Continued
Effects of the Automobile
• 26 million people owned a car by the end of
the 1920s
• New roads built – 400,000 miles – what
comes with new roads?
• Reduced sense of community
• Changed lives of teenagers
• Auto-touring – camping & sightseeing
• Pollution, traffic jams, parking issues
Consumer Goods
•
•
•
•
•
American’s have rising disposable income
Electric razors
Facial tissues
Frozen foods
Home hair color
Consumer Goods
• New products for the home:
• Homemade cleaning products – indoor
plumbing became more common and this
was needed
• Labor – savers: new appliances
• Electric irons, vacuums, cleaners, washing
machines, refrigerators
• Changed how people cleaned and
prepared meals
Consumer Goods
• Fashion and youthful appearance
• This desire of Americans created a new
industry
• Deodorants
• Cosmetics
• Perfumes
Airline Industry
• Langley – tried to make a steam engine
plane
• Crashed into the Potomac River
• Wright Brothers – 1st plane cost $1,000
• 1903
• Air industry developed rapidly
• 1918 – airmail
• 1925 – postal office signed contract with
private airplane operators to carry mail
Airline Industry
• Air Commerce Act
• Federal Aid for building airports
• 1927 – Lindbergh made an amazing
transatlantic solo flight
• 1928 – 48 airlines serving 355 American
cities
Radio Industry
• 1913- Edwin Armstrong invented circuit that
could transmit sound
• 1920 – KDKA – Pittsburg – broadcast news
of Harding’s election victory
• 1926 – National Broadcasting Company
(NBC) set up a network – daily programs
• 1927 – 700 stations nationwide
• 1929 – 10 million radios used in the country
Radio Industry
• 1928 – Columbia Broadcasting Station
(CBS) – coast-to-coast network – rivaled
NBC
• Sold advertisements, hired musicians,
actors and comedians to appear on their
shows
• 1928 – first presidential campaign to use
radio
Consumer Society
•
•
•
•
Higher wages
Shorter work hours
Buying sprees
Traditional attitudes of thrift and prudence
shift to excitement to be consumers
Easy Consumer Credit
• Debt had been shameful
• Now people started to believe they could
pay debt over time
• Credit started to become more popular
• “buy now and pay in easy installments”
• 75% of radios and 60% of cars bought on
installment program
Creating Consumers
• Planned Obsolescence – products go out
of style, replace with up-to-date versions
• Advertising – targeted women, used
psychology
• Newspapers, magazines, billboards, radio
• Jingles, celebrity testimony
• Retail Industry – chain-style stores, quickfreezing, cellophane – food shipped over
long distances
Mass Advertising
• To attract consumers to new products
• Linked products with qualities associated
with modern era
• Progress
• Conveniences
• Leisure
• Success
• Style
Mass Advertising
• 1924 Magazine Ad for deodorant
• “Flappers they may be – but they know the
art of feminine appeal!”
• Also played on fears and nerves of the
consumer
1. What is being
advertised?
2. Who is the target
of this
advertisement?
3. What other forms
of advertisement
were used in the
1920s?
The Best That Money Can Buy
Study the advertisements from the Saturday Evening
Post, a popular magazine in the 1920s to answer the
following questions.
• What products do the advertisements try to sell?
• How do the advertisements depict the people using their products?
• How would owning each of the products change people’s lives?
In your journal, answer these questions in complete
sentences for each advertisement.
Flappers
• Short, bobbed, black hair
• Played sports, Drove cars
• Drinking, smoking, swearing
• Economic independence
• Fashion firsts
Managerial Revolution
• Companies split into divisions
– Sales, marketing, accounting, etc.
• Hire managers to run these divisions
• Executives and owners were now free from
the day to day runnings of a company
• New career – professional manager
– Expanded the size of the middle class
• Engineers also in high demand since
companies relied on technology
Welfare Capitalism
• Middle class members of new consumer
society
• Industrial workers join too – more
disposable income
• Workers could buy stock, participate in
profit sharing, and receive medical care
and pensions from companies
• This made industrial workers richer
Decline of Unions
• 1920s – union goes down
• Benefits programs made unions seem
unnecessary
• Open Shops – employees were not
required to join a union
• Benefits cover basic needs, workers can
spend money to improve quality of life
Uneven Prosperity
• African Americans – had factory jobs in
WWI
• Replaced by servicemen after WWI
• Native Americans – citizenship in 1924;
often isolated from society
• Immigrants – hard to find work; wages were
low
• Deep South – left out of economic boom –
farmers did not benefit from the growth of
the economy
Farm Crisis
• Farmers did not benefit from the economic
prosperity
• Less than 1/3 income from the rest of the
economy
• Could produce much product but demand
was not high
• Prices dropped
• Farm technology increased
Changing Market Conditions
• “Quiet depression” in agriculture
• During WWI famers bought new land and
machines to raise more crops
• Sales were strong and prices were high
• After the war the European countries could
not buy American farm goods
Changing Market Conditions
• Fordney-McCumber Act – 1922
• Raised tariffs dramatically
• Farmers could no longer sell as much of
their product over seas
Helping Farmers
• McNary-Haugen Bill – Congress should
buy surplus and sell them in Europe
– Even if it is to be sold at a loss
• President Coolidge vetoed the bill both
times
– Argued farmers would produce more with the
money they made
– Farmers were in a recession during the 1920s
Election of 1928
• Herbert Hoover (R) wins
• Former Sec. of Commerce
• Defeated moderate progressive
and NY governor Alfred E. Smith
• Ran against a Catholic –
problem??
• For first time since
Reconstruction, many
southern states vote
Republican
• Economic prosperity
African American Migration
1920s Culture
Opener Activity
Make a list of some major
technological innovations
developed during your lifetime.
Include how these items have
affected daily life.
Economic Prosperity
• Economic Growth
• Investment and Confidence
• Wage Increases
•More buying power
•Development of new products
The Jazz Age
• “The Blues” Born in
slave music
• New Orleans
musicians moved
North
• Big-band jazz swept
nation – dancing
shocked elders
Harlem Renaissance
• Began in the South with Jazz and migrated
North during the Great Migration
• Many musicians, artists, and authors settled
in Harlem (a borough of NYC)
• Musicians
• Louis Armstrong
• Duke Ellington
• Authors
• Langston Hughes
• Lyrics and writings addressed issues of
ethnicity & prejudice
• Celebrated African American heritage
Leisure Times
• Babe Ruth, Lou Gehrig, Ty Cobb
• Black Sox Scandal – accused of throwing
1919 World Series
• Book of Month Club – Reader’s Digest
• Celebrities admired – Jim Thorpe, Charles
Lindbergh, Amelia Earhart, Harry Houdini
More on Leisure Time
By 1929 more than
800 radio stations
were broadcasting
music, news,
sports, and
comedy shows to
homes across the
nation.
http://www.authentichistory.com/1920s/speeches/19270611_Calvin_Co
olidge_and_Charles_Lindbergh.html
College Life
• Enrollment triples
• The “Collegiate” changed fashion
• Dance Marathons – for months at a time
• Beauty Contests
The Lost Generation
• Reflected horror of
death & destruction
of WWI
• Ernest Hemingway –
uselessness of war
• F. Scott Fitzgerald –
emptiness of status
of wealth pursuit
• Sinclair Lewis –
Conformity of
middle-class life
“Old” Culture
“New” Culture
Emphasized Production
Emphasized Consumption
Character
Personality
Scarcity
Abundance
Religion
Science
Idealized the Past
Looked to Future
Local Culture
Mass Culture
Substance
Image
The above graph indicates in a general sense what historians mean when
they refer to the "old" and the "new" cultures of the 1920s. This list is not
meant to be definitive and, as can be seen throughout the website, some
groups and debates encompassed aspects of both cultures. Taken en
passim from Warren Susman, Culture as History: The Transformation of
American Society in the Twentieth Century (New York: Pantheon Books,
1984).
Black Nationalism
• Losing hope of ever achieving
equality
• Pan-Africanism Movement – unite
African Americans worldwide
• Marcus Garvey – supported Black
Nationalism
• Create a new political state for
African Americans in Africa
A Changing Population
• Immigration Act of 1924 – Reduce
immigration, especially Asians (Quota
system)
• Mexican Migration – Increased for lowpaying agricultural jobs
• American Indians – citizenship granted in
1924 (b/c of WWI soldiers)