I.A New Economic OrderA.Booming Business, Ailing Agriculture1.Recession struck in 1920 as Washington canceled wartime defensecontracts and veterans reentered the job market.2.By 1930, some 60 percent of U.S. families owned cars.a)Ford Motor Company primary supplier until General Motorsstarted to sell more comfortable and different color cars3.The Fordney-McCumber Tariff in 1922 and the Smoot-Hawley Tariff in1930 pushed U.S. tariffs to all-time highsa)helped domestic manufacturers but stifling foreign tradeB.New Modes of Producing, Managing, and Selling1.Assembly lines increased production speed and outputa)Managers discouraged individual initiative2.The shift to a consumer economy affected wage policies. Rather thanpaying the lowest wages possible, business leaders now realized thathigher wages increases consumers’ buying powera)Having more money means they would spend more3.Women in the workplace faced wage discriminationC.Struggling Labor Unions in a Business Age1.As wartime antiradical sentiments persisted --- opponents of labor unionsoften associated them with the communist label.2.The American Federation of Labor officially prohibited racialdiscrimination, even though most AFL unions in factbarredAfrican-AmericansII.Standpat Politics in a Decade of ChangeA.The Evolving Presidency: Scandals and Public-Relations Manipulation1.In the election of 1920, Harding defeated his Democratic opponent JamesM. Cox. After the stresses of war and Wilson’s moralizing, voters insteadwelcomed Harding’s bland oratory2.Harding’s cabinet selections were disastrous as there were any scandalsthat tainted his reputation3.“Teapot Dome” became a shorthand label for a tangle of scandalsB.Republican Policy Making in a Probusiness Era1.While promoting corporate interests, Coolidge opposed governmentsupport for other Americans2.President Coolidge rejected calls to aid the victims. The government hadno duty to protect citizens “against the hazards of the elements,” hedeclared. Coolidge did
a)However, he sign the Flood Control Act of 1928 funding leveeconstruction along the Mississippi3.Hard-pressed farmers rallied behind the McNary-Haugen Bill, aprice-support plan under which the government would purchase thesurplus of six basic farm commodities --- cotton, corn, rice, hogs, tobacco,and wheatC.Independent Internationalism1.The Harding and Coolidge administrations continued to oppose U.S.membership in the League of Nations.2.The Republican administrations worked to protect U.S. corporate interestsin Latin America3.Washington Naval Arms Conference -- After the warended, the UnitedStates, Great Britain, and Japan edged toward a dangerous (and costly)naval arms race.a)Led to the outlining a specific ratio of warships among the world’snaval powers4.In 1928, the United States and France, eventually joined by sixty othernations, signed the Kellogg-Briand Pact renouncing aggression andoutlawing war.