“The change is amazing”

• March 4th, 1921 – Harding becomes president (R) [warm, friendly, open]

• Wilson (D) was out [sick, remote, bitter]• “Back to Normalcy” was Harding’s slogan

Harding (R)Wilson (D)

Republicans in Office• WW1 had helped the economy– When it began – Eu. ordered tons of supplies from U.S. factories– When U.S. had joined - factories expanded rapidly meeting

demands for military supplies

Republicans in Office1.) When war ended – two million soldiers came home & looked for jobs

2.) At the same time, factories stopped turning our war materials

Result: sharp recession: economic slump

Harding Takes Office• Recession fed voter

discontent with Democrats (held power for 8 years)

• Cabinet positions: he filled with men who followed pro-business policies– Andrew Mellon: became

secretary of the treasury: balanced budget/ lowered taxes

– Herbert Hoover: became secretary of commerce: helped American businesses expand overseas

Corruption & Scandals

• Harding brought in friends for most other Cabinet posts – Ohio Gang: “old friends” & Cabinet members of Harding’s

administration who saw government service as a way to enrich themselves; resulting in a series of scandals

Scandal• “Friends” betrayed him, didn’t take their jobs seriously,

stole money & carried out scandals... Harding was stressed• August, 1923 Harding died of a heart attack

Teapot Dome Scandal

- Harding’s secretary of the interior (Fall) had been bribed by 2 oil executives- Fall secretly leased them gov’t land in California & Teapot Dome, Wyoming- Fall = 1st cabinet official ever sent to prison

Coolidge Takes Office (R)

• Party Hardy & Silent Cal• “Silent Cal” was tight with $$ & words vs. Harding who liked

to party & give long speeches)• Coolidge Sets out to correct damage caused by scandals– Forced officials involved in scandals to resign– 1924 – wins again “keep cool with Coolidge”

Coolidge Prosperity• Believed that prosperity for all Americans

depended on business prosperity– Cut back regulations on business– Named business leaders to head gov’t agencies

Industry Booms – “Coolidge Prosperity”

• His pro-business policies contributed to a period of rapid economic growth (1923-1929 production doubled)

• For most Americans, income rose– Able to buy a flood of new consumer products (fridge, radios,

vacuums, appliances)

Businesses used advertising to boost sales of consumer goods

- Encouraged people to think their happiness depended on owning a wealth of shiny new

products

- People often wanted to buy things they couldn’t

afford

BRAIN BREAK!!!EQW: what was your most favorite thing to pretend when you were a little kid?

Remaining Time Today:

• Daily Reader• Key Terms… work efficiently!

• Tomorrow: installment buying