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Unit 4—Chapter 7. The Roaring Twenties CSS 11.5. Part Two. The Business of Government 11.5.1 - Discuss the policies of Presidents Warren Harding, Calvin Coolidge, and Herbert Hoover.

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Unit 4 chapter 7

Unit 4—Chapter 7

The Roaring Twenties

CSS 11.5

Part two

Part Two

The Business of Government

11.5.1 - Discuss the policies of Presidents Warren Harding, Calvin Coolidge, and Herbert Hoover.

11.5.2 - Analyze the international and domestic events, interests, and philosophies that prompted attacks on civil liberties, including the Palmer Raids,… the Ku Klux Klan, and immigration quotas and the responses of organizations … to those attacks.

EQ: How did domestic and foreign policy change direction under Harding and Coolidge?

Return to normalcy
Return to Normalcy

  • Warren G. Harding

    • called for a return to “normalcy”

    • this meant isolationism and laissez-faire

    • critics said that this basically wiped out the reforms of the Progressive Era

      • Harding was immensely popular

      • wrote his own speeches and often made up words in them: normalcy, bloviating

      • Harding died of a heart attack halfway through his presidency

      • criticized for allowing his poker buddies to rip off the country

(1921 – 1923)

Return to normalcy1
Return to Normalcy

  • Andrew Mellon, Sec. of the Treasury

    • argued that lower taxes would stimulate business investment which creates jobs

      • served under Harding, Coolidge, and Hoover

    • cut the top income tax rate from 77% to 25%

    • cut taxes on low incomes

    • cut back programs begun during WWI

      • reduced national debt from $18 billion to $16 billion

Return to normalcy2
Return to Normalcy

  • Teapot Dome Scandal, 1921

    • Albert Fall (Sec. of the Interior) asked for control of the navy’s oil reserves which he leased to private buyers

Return to normalcy3
Return to Normalcy

  • Calvin Coolidge (1923 – 1929)

    • “Silent Cal” was seen as honest and frugal

    • Laissez-Faire returns!

    • he refused to spend government money to buy farm surplus

      • critics say his refusal to help farmers and his pro-business policies helped lead to the Great Depression

      • supporters called the 1920s Coolidge Prosperity

  • “The chief business of the American people is business.”


  • the US refused to join the League of Nations

  • the US raised its taxes on imports

  • Washington Naval Disarmament Conference, 1921

    • reduced the sizes of the US, Japanese, and British navies in the Pacific

  • Kellogg-Briand Pact, 1928

    • 62 nations signed a pledge to outlaw war

  • Isolationism1

    • Dawes Plan, 1924

      • the US loaned money to Germany so it could pay reparations to Britain and France

      • Britain and France then paid the US money they had borrowed during WWI

        • Dawes won the Nobel Prize

        • the German economy was stable until 1929

        • When US loans stopped so did German reparations and Europe went into its own depression