Warren G. Harding Calvin Coolidge Herbert Hoover

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2 Warren G. Harding Calvin Coolidge Herbert Hoover

3 Warren G. Harding Calvin Coolidge Herbert Hoover Presidents of the 1920s (Harding, Coolidge, and Hoover) were all members of the Republican Party and believers in laissez-faire, or hands-off government. They were all conservative and promoted many of the same ideas throughout the decade.

4 Republican Americans saw stability as good for the economy; Democrats were seen as promoting change, not stability (Progressives) Conservative Republicans were the conservative party, they kept things the same and did not get involved most of the time Isolationist After WWI, most Americans did not want to be involved in the problems of the rest of the world, so Republicans promoted a return to normalcy and focused on domestic economic pursuits. US did not join the League of Nations; did not sign the Treaty of Versailles; Laissez-faire Hands off economic policy; the government backed off it s involvement with business and regulations. Anti-immigration Quotas and immigration restriction laws were supported, both to keep others out (isolationism) and to focus on prosperity for Americans (Nativism) Scandals although not all were involved in scandals, many scandals plagued the presidency and other high offices through the 1920s, reminiscent of the Gilded Age problems.

5 By lifting regulations and lowering taxes (both personal and corporate) businesses and individuals had more money. In addition to the government policies putting more money into circulation, the end of WWI impacted spending. Individuals were happy to be done with the limits placed on them by the war and wanted to spend the money they had saved.

6 Technological advances like the widespread use of the assembly line had decreased prices and increased production. This led to more available goods, not just things people needed, like clothes and food, but also things that people wanted, like cars, washing machines, and radios.

7 Buying things you want, as well as things you need, is called consumerism. People had sacrificed during the war and wanted to enjoy their new disposable income (extra money they now have to spend beyond their needs). This was new in the 1920s.

8 All of these new items costs were lower than before, but were still high. This led to a new phenomenon, buying on credit. Stores would allow a buyer to put a portion of the money for an item down, and take the item home. The buyer would pay part of the total cost each week or month, until the item was paid off. For the privilege of this, the buyer would pay more than if they had paid everything at once (interest). This was also called an installment plan.

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12 To get more business, stores began to advertise their credit policies through the new mass media.

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14 To get more business, stores began to advertise their credit policies through the new mass media. Mass media that became popular (and was being bought on credit by consumers) included radios. Radio advertising, as well as in newspapers and billboards, skyrocketed in popularity.

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16 Another area arose where Americans could buy on credit the Stock Market. Previously, stock buying had only been something the wealthy could afford. But, with margin buying, nearly all Americans could now afford to invest in stocks. Margin buying paying a percentage (10%) of the cost of the stock when you buy, with the understanding you will pay the balance when you sell the stock.

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19 Prohibition was in effect throughout the 1920s ( )

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21 Prohibition was in effect throughout the 1920s ( ) While this should have harmed the economy, it created a new, underground series of businesses, from bootleggers, to speakeasies, to organized crime.

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24 Prohibition was in effect throughout the 1920s ( ) While this should have harmed the economy, it created a new, underground series of businesses, from bootleggers, to speakeasies, to organized crime. While illegal, the individuals involved in these industries made millions of dollars, tax free. This money was then poured into legal industries in order to hide its illegal origins, adding to the economic boom times of the 20s.

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26 Nearly all industries in the 1920s prospered. Movies, radio, automobile production, factories, advertising, stocks, and even illegal alcohol industries added to the booming economy. Only farmers did not see an increase in their economic situation. Due to increased technology, large business farms could produce more crops than the average farmer, lowering prices and pushing many farmers out of business or into subsistence farming. Farmers were the one group that struggled economically during the 1920s.

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