Chapter 21: Normalcy and Good Times

1. Chapter 21: Normalcy and Good Times American History

2. The Harding Administration • Harding’s slogan was to return to normalcy, or normal life after World War I • However, Harding’s presidency was littered with scandal • Ohio Gang: hired old poker buddies for political jobs; abused their positions and caused scandal • Teapot Dome Scandal: Secretary of Interior Albert Fall leased lands containing Navy oil reserves in Teapot Dome, Wyoming in exchange for bribes • Daugherty scandal: Attorney General Harry Daugherty accepted bribes from a politician in connecting with gaining access to a German company’s valuables

3. The Coolidge Administration • Coolidge was more withdrawn than Harding, and contrasted heavily from the “Roaring 20’s” • Was quiet, withdrawn, and did not seek attention • “Keep Cool with Coolidge” • Believed that prosperity rested on business leadership, and that the government should not interfere with business • Easily won the election of 1924 against a weary Democratic Party and a dying Progressive Party

4. The Automobile and the Assembly Line • During this time, mass production, or large scale manufacturing, had increased, resulting in consumer costs • With the invention of the automobile (Model T) by Henry Ford came the development of the assembly line • Divided operations into simple tasks that unskilled workers could do • Cut unnecessary motion to a minimum • Reduced the price of goods due to speedy manufacturing and using less materials and man-power • Increased worker’s wages and decreased worker’s hours and days of working

5. The Consumer Goods Industry • With the development and manufacturing of the automobile came the growth of other industries, such as rubber, plate glass, nickel, and lead • The automobile also helped create small business, such as garages and gas stations, and eased the isolation of rural life by making it easier for farmers and townspeople to travel into the city • Other products, such as electric razors, disposable facial tissues, frozen foods, home hair dye, hygiene products, vacuum cleaners, electric irons, and refrigerators became available for the public to own • A major focus on fashion and youthful appearance also took shape

6. The Airline and Radio Industries • With advancements in airplanes during World War I came the development of the airline industry • Airplanes were used for stunts, at first, but then developed into mail-carrying vessels • With Charles Lindbergh’s solo flight over the Atlantic came the possibility that airplanes can be used for transportation • In 1913, Edwin Armstrong invented the radio, and in a few years, it would be a household item for entertainment • In 1926, the National Broadcasting Company (NBC), followed by the Columbia Broadcasting System (CBS) established a permanent network of stations, selling time to advertisers and performers

7. The Consumer Society • The 1920’s was a decade of spending, which kept the economy booming • Consumers built upon lines of credit and debt, figuring they would be able to pay it off over time • Advertising became a booming industry, using ads to lure consumers into spending • Companies went through a managerial revolution, where the company became more structured, with a manager in charge • Industrial workers were offered to participate in welfare capitalism, or use the option of buying company stock, participate in profit sharing, and receive benefits • Companies offered the option of an open shop to workers, which did not require them to join a union

8. The Farm Crisis • Farmers did not share the same fortunes as everyone else in the 1920’s • Even with the development of fertilizers, pesticides, and farm equipment, which led to an increase in production of products, the demand was low, and so were prices • The government encouraged farmers to sell their crops in Europe, but once the war ended, farming returned to normal • The government passed bills to help farmers sell their surpluses overseas, but Coolidge vetoes these bills, saying that the farmers would grow a greater surplus, eventually limiting the government to sell their products overseas

9. Promoting Prosperity • Andrew Mellon devised programs and goals to help continue the raging American economy • Cut government spending, reduced taxes, and balanced the overall budget • Believed lowering taxes would give people more money to invest, which would help the economy grow, which would give the government more money, in the long run, from taxes: supply-side economics • Herbert Hoover also helped develop the nation’s economy • Called on his philosophy of cooperative individualism, which encouraged manufacturers to form trade associations, which would give secrets to the government • Also created several agencies to help keep the economy stable

10. Trade and Arms Control • The majority of Americans favored isolationism, or staying out of world affairs, but the government viewed the United States as an instrument for world peace • Banker and diplomat Charles Dawes negotiated with Great Britain, France, and Germany, and established the Dawes Plan to help continue economic stability in Europe • The United States would loan money to Germany to pay for the reparations for World War I, and in turn, France and Great Britain would pay more on their war debts to the U.S. and demand less from their reparations

11. Disarmament and Abolishing War • The U.S. government held meetings, known as the Washington Conference, with Great Britain, France, Italy, China, Japan, Belgium, the Netherlands, and Portugal, to discuss halting armament production • Proposed a 10 year moratorium, or pause, in the construction of new warships • The Five-Power Naval Limitation Act formalized the plan • The Four-Power Treaty recognized possessions of islands in the Pacific • The Nine-Power Treaty guaranteed China’s independence • The Kellogg-Briand Pact outlawed war in the United States • 62 nations ratified it • Hailed as a victory in peace, but did little to keep countries from arming soldiers and from tangling into war