The%20Business%20of%20America

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The Business of America

• The Roaring 20s
• (1919-1929)
• Chapter 25 Section 1

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Essential Questions

• What is the purpose of government?
• Is the U.S. Government intervening in YOUR life
  now? How? Is that right?

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Warren G. Harding

• Won the 1920 Presidential Election
• Promised America a Return to Normalcy,
  Prosperity at Home Peace Abroad.
• What Did He Mean?

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1920s Booming Economy

• Harding Wanted to Help Americans Economically
• Lowered Taxes
• Americans Have More to Spend
• Higher Tariffs On Foreign Goods
• Domestic (USA) Goods Cheaper

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Foreign vs. Domestic
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Hardings Economic Philosophy

• There should be less government in business and
  more business in government.
• What did he mean?

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The Teapot Dome Scandal

• Harding Chose His Friends From Ohio to be in His
  Cabinet (Advisors)
• The Ohio Gang
• Many of Were Corrupt!
• Used Their Positions in Government to Make

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The Ohio Gang

• Hardings Cabinet Friends Took Illegal Bribes
  to Drill for Oil
• Oil Companies Had Found Oil in Teapot Dome,
  Wyoming
• It was Government Preserved Land
• Ohio Gang Gave Oil Companies the Right to Drill
  (Against the Law)

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Presidential Scandals
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Harding Dies VP Calvin Coolidge Becomes
President (1923)

• During Summer of 1923, Harding Went on a Campaign
  Tour
• Learns of Teapot Dome Scandal While On Tour
• Dies a Few Days Later
• Vice President Calvin Coolidge is Sworn in as
  President

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Calvin Coolidge

• Calvin Coolidge Cleaned Up the Teapot Dome
  Scandal
• Ran for Election in 1924 Won!
• Believed in Laissez-Faire Economics

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Laissez Faire Economics

• Laissez Faire Means Hands-Off in French
• Coolidge Believed
• Business, if left unregulated by the government,
  would act in a way that would benefit the
  nation.
• Coolidge Also Believed
• The Chief Business of the American People is
  Business.

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Laissez Faire Economics

• Coolidge Also Believed Government Should NOT Help
  Citizens with Social or Economic Problems
• Not Governments Problem!
• Coolidge Refused to Help Struggling Farmers in
  the 1920s

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Problems of the Farmers

• In the 1920s, Farmers Had Major Problems
• New Machinery More Production
• Supply Demand
• U.S. Farmers Made More Food Prices Dropped
• Farmers Went Broke

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Congress Tried to Help

• Congress Passed a Law to Buy Farmers Extra Food
• Buy the Extra Food, Less Supply
• Prices Would Rise
• Coolidge Vetoed the Bill
• Laissez Faire!
• Coolidge Feared Citizens Would Rely on the
  Government to Always Solve Problems!

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Isolationism

• Harding Coolidge Were Isolationists
• Isolationism U.S. Would Stay Neutral, OUT of
  the Worlds Problems
• Coolidge Signed the Kellogg-Briand Pact
• 15 Countries Agreed Never to Fight Each Other
  Unless in Self-Defense

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Roaring Economy of the 1920s

• Economy was Booming in the 1920s
• No Government Interference
• Annual Income Went Up 35
• 512 to 722
• If You Were Making 50k Got a 35 Increase,
  What Would Your Salary Be?
• What Would YOU Spend it On?

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Business Cycle (Booms)

• People Buy More Products Invest in Companies
  More
• Companies Get MORE Investment Capital, Hire More
  Workers, Make More Goods, Sell More
• More Workers More Paychecks More Spending!
• Business Grows!

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More More Spending!

• Americans Had More to Spend on Leisure
  Activities Goods
• More Spending Business Make More Hire
  More Workers More Spending Etc...

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Henry Ford

• Determined to Make a Car Everyone Can Afford!
  Why?
• Who Makes More ? Honda or Ferrari?
• 1st Car Ever was the Model T
• Cost 335

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The Assembly Line

• Speeds Up Production
• More Goods Produced Lowers the Price
• 1 Model T was Produced Every 10 Seconds
• Tough on Workers!
• Standard of Living Goes Up for All!
• More Americans Can Afford More Goods!

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I Love Lucy
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Installment Buying

• Buying a Product on Credit (Just Like a Credit
  Card)
• Pay Off in Payments Once a Month
• More Americans During the 1920s Started Buying
  Products on Credit
• My Bose Stereo/Car/ House/Etc

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Life Made Easier

• Cheap Petroleum/Fuel Electricity were Widely
  Used
• Powered New Inventions
• Vacuum Cleaners, Sewing Machines, Dishwashers,
  Washer Dryers, Toasters, Fans, Etc
• More Americans Bought More New Products

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Beginning of the Air Age

• Planes Were Now Used for Crop Dusting, Stunt
  Shows Training Pilots
• The Post Office Began Mail Service in 1918
• Pan American Airlines was the 1st Ever Passenger
  Airliner (1927)

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Charles Lindbergh Amelia Earhardt

• Charles Lindbergh Was the 1st Man Ever to Fly
  Across the Atlantic Ocean in 1927
• Amelia Earhardt Was the 1st Woman Ever to Fly
  Across the Atlantic Ocean in 1928

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Essential Questions

• What is the purpose of government?
• Is the U.S. Government intervening in YOUR life
  now? How? Is that right?