the politics of normalcy chapter 27. the warren harding error
TRANSCRIPT
The Politics of Normalcy
Chapter 27
The Warren Harding Error
Two Quotable Quotes:
“We want less government in business and more business in government.”
“We have had Wilson for eight years, and I have not understood him. I understand Harding already.”
Republican Era Begins
“He looks like a President.” – H. Daugherty
Committed to the free enterprise system
Harding’s fiscal policy Surplus of government dollars and a substantial drop
in unemployment
The Ohio Gang
Harding filled government positions with his friends which inevitably led to corruption
Teapot Dome Scandal: Leasing of oil reserves to private companies “If Albert Fall isn’t an honest man…”
Harding has a heart attack while “bloviating”
“Silent Cal”
“You lose.”
“Got to eat somewhere…”
“How can you tell?”
Coolidge and Business
Stood for integrity, hard work, and thriftiness
“The man who builds a factory builds a temple, and the man who works there worships there.”
Economized in little and big ways – cut taxes – but in the end…
“I do not choose to run for President in 1928.”
“End Poverty As We Know It”
Herbert Hoover“associationalism”
Bringing industry leaders together to improve efficiency
As business flourished poverty would disappear
Nomination speech of irony
Era of Isolationism
The League of Nations / World Court From complete distrust, to application, to denial
Washington Naval Conference Harding’s great international accomplishment The superpowers scaled back their warships
However, there were loopholes
Kellogg-Briand Pact Outlawed war, but not defensive war Steps toward World Peace?
Era of Isolationism
Great Britain and France owed the US 11 billion dollars Reliant upon Germany to make payments so they could
in turn pay the US Germany stopped making payments
Dawes Plan – what did it fix?
Latin America – a time of rebellion, and possible US intervention, which the US did not tend to
Republican Boom Years
Big business expanded, productivity increased dramatically, unemployment dropped and wages doubled!
A new car rolled off the Ford plant every 10 seconds – at cheap prices What were the secondary benefits of this increased
productivity?
New Industries
Commercial airplane travel – from a novelty to an efficient vehicle
Synthetics and plastics were developed Revolutionized the clothing and entertainment industry Radios were in every home as the main source of
entertainment
The world became substantially smaller
Big Businesses Get Bigger
Consolidation: Ford, GM, Chrysler – and variety!
Holding Companies: A&P: The first Walmart! Why did it take so long for grocery stores to evolve?
Speculators – Ponzi schemes and land booms
DJIA saw a massive increase in money invested – people were buying on hot tips and margin!
The Effects of Fast Growth
The GNP rose by 40% during the 1920’s, but not all Americans were sharing prosperity
Farmers and unskilled laborers were hit particularly hard Industries were finding easier alternatives which
required a smaller labor force