Warren G. Harding, A Return to "Normalcy"
Laissez-Faire stance in economics and government:
- opposed organized labor
- opposed anti-trust policies
- cut federal spending (less money going to social issues)
- cut taxes for corporations and wealthy Americans (frees up capital for investment)
- period of isolationism
- leads to eventual slowing down of foreign trade with Europe by the end of the 1920s (Europe already experiencing difficulties in paying war debts from WW1)
Secretary of Treasury = Andrew Mellon, who was one of the wealthiest men in the nation
- believed in "Trickle Down Economics"
- Supply Side Economics --> cut taxes for the wealthiest Americans
- cut government spending
- refinanced the national debt
- persuaded the federal government to lower the interest rates
- created government boards that supported business development and promoted economic efficiency
- cut business costs and encouraged standardization and simplification of industrial parts and procedures
- organized trade associations
- regulated new industries
Resources:
Audio Recording of Harding's call for "Return for Normalcy"
Harding's Inaugural Address in 1921
Questions to consider:
- Does the "return for normalcy" relate to the materialism that ensues in the 1920s?
- According to Harding, what kind of transition does the post-WW1 economy need to make?
- Harding proposes a few remedies - what are they, and how will they stabilize and strengthen the economy?
Calvin Coolidge, "The Business of America is Business"
Nicknamed "Silent Cal"
Continued out Harding's administration
Resources:
Recording of "Law and Order" and Text to read along
On the Spirituality of Commerce
The Man Nobody Knows by advertising expert Bruce Barton
Activity - Impact of Tariffs on Business and Consumers (link to activity)
Continued out Harding's administration
- cleared presidency of scandals
- cut taxes and federal spending
- increased protective tariffs
- wanted a balanced budget
- Secretary of State remained Andrew Mellon
- Secretary of Commerce was Herbert Hoover
- Age of Consumerism
Resources:
Recording of "Law and Order" and Text to read along
On the Spirituality of Commerce
The Man Nobody Knows by advertising expert Bruce Barton
Activity - Impact of Tariffs on Business and Consumers (link to activity)
Herbert Hoover, the "Wonder Boy"
"Rugged Individualism"
Conservative Principles
Resources:
Hoover's Speech on Rugged Individualism 1928 (see below)
Hoover's Quotes - Predicting Prosperity (see below)
Questions to Consider:
- believed in volunteer efforts and free enterprise
- business should show a new spirit of public service
Conservative Principles
- balanced budget
- low taxes
- government non-interference
- high tariffs (Hawley-Smoot Act of 1930)
Resources:
Hoover's Speech on Rugged Individualism 1928 (see below)
Hoover's Quotes - Predicting Prosperity (see below)
Questions to Consider:
- What conservative principles are seen in Hoover's Rugged Individualism speech?
- Based on the selected quotes, what errors did Hoover assert about the economic situation in the beginning of the Great Depression?
hoover_on_rugged_individualism_1928.pdf | |
File Size: | 58 kb |
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president_herbert_hoover_selected_quotes_predicting_prosperity.pdf | |
File Size: | 80 kb |
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