amsco chap 2
Edna St. Vincent Millay's Poem
Text of Poem: "My candle burns at both ends; It will not last the night; But ah, my foes, and oh, my friends- It gives a lovely light!"
Author: Edna St. Vincent Millay, "First Fig," 1920.
Context of the 1920s
Historical Background:
The armistice ending World War I occurred two years prior to the presidential election in November 1920, marking a significant transition for the American people from wartime to peacetime recovery.
In this pivotal era, American voters included both women and men, as women gained suffrage following the ratification of the 19th Amendment in 1920, fundamentally altering the political landscape.
Candidates for President:
James Cox (Democrat) favored the League of Nations, advocating for international cooperation and a new global political order.
Warren G. Harding (Republican) had vague positions on most issues but resonated with the public's desire for stability and normalcy after the tumult of war.
Harding's notable campaign slogan: "return to normalcy" appealed to Americans seeking a reversion to pre-war life and values.
Election Outcome:
Harding was elected by a landslide, signaling the end of Progressive era idealism and establishing a more conservative governance focused on business interests.
Republican Control in the 1920s
Political Landscape:
Three Republican presidents dominated: Harding, Coolidge, and Hoover, with a strong emphasis on pro-business policies.
Congress was predominantly Republican during this time, which facilitated significant legislative changes favoring economic growth.
During this period, U.S. business flourished, although farmers and unions faced difficulties due to price drops and lack of advocacy, respectively, highlighting disparities in the economic prosperity of the era.
Business Doctrine and Regulatory Changes
Shift in Republican Policies:
The death of Theodore Roosevelt in 1919 allowed conservative Republicans to regain control, leading to a backlash against the Progressive policies that had sought to regulate and support labor.
There was a notable shift from laissez-faire economics to limited government regulation aimed at stabilizing business and fostering growth.
Regulatory commissions from the Progressive era were often led by appointees sympathetic to business interests, diminishing the regulatory power previously in place.
Economic Philosophy:
The prevailing belief during this era was that business and profit-making should lead economic development, with the understanding that a robust economy was ultimately for the national benefit. This ideology would influence economic policies for years to come.
The Presidency of Warren Harding
Background of Warren Harding:
Former newspaper publisher from Ohio, Harding was known for his charming and affable persona. He was nominated as a compromise candidate after a deadlocked Republican convention, appealing to various factions within the party.
Cabinet Appointments:
Charles Evans Hughes: Appointed Secretary of State, he was a prominent figure who had previously run for president, bringing experience in foreign affairs.
Herbert Hoover: Appointed Secretary of Commerce, Hoover was a successful mining engineer and had efficiently managed food distribution during World War I as the leader of the Food Administration.
Andrew Mellon: Appointed Secretary of the Treasury, Mellon was an industrialist with substantial influence in finance, advocating for tax cuts to stimulate economic growth.
William Howard Taft: Appointed to the Supreme Court, Taft’s judicial experience added an element of stability and continuity to the administration.
Domestic Policy Initiatives
Key Legislation Passed:
Income Tax Reduction: Aimed at stimulating spending and investment by providing more disposable income to Americans.
Increase in Tariff Rates: Implemented under the Fordney-McCumber Tariff Act (1922) to protect domestic industries from foreign competition, which ultimately raised prices on imported goods.
Establishment of the Bureau of the Budget: Aimed at enhancing government efficiency and accountability in financial management, indicating a shift towards more systematic governance.
Notable Pardons:
Harding pardoned Socialist leader Eugene Debs, who had been convicted under the Espionage Act for his anti-war stance, marking a notable event in the context of civil liberties during his presidency.
Scandals During Harding's Administration
Corruption Issues:
Harding's presidency was marred by scandals, most infamously the Teapot Dome Scandal. Secretary of the Interior Albert Fall accepted bribes for oil leases, which undermined public trust in the administration.
Harry M. Daugherty, Attorney General, was also implicated in bribery-related scandals, further exacerbating concerns about corruption at high levels of government.
Harding's Death:
Harding died of a heart attack in August 1923 before many of the scandals were publicly revealed, leaving behind a complicated legacy and a government in turmoil.
The Presidency of Calvin Coolidge
Background on Calvin Coolidge:
Gained national fame for effectively breaking the Boston police strike as Massachusetts governor, demonstrating his commitment to law and order.
Nicknamed "Silent Cal" for his reserved demeanor, Coolidge believed in minimal government intervention in business and adopted policies that favored economic growth during the Roaring Twenties, further shaping the national economic landscape.
Coolidge's Policies:
Under Coolidge, the U.S. saw a period of significant economic expansion, along with a decline in the relevancy of labor unions and an increasing divide between the wealthy and the working class, setting the stage for future economic challenges.
Republican Dominance in the 1920s
Political Landscape:
Following the end of the Progressive Era, the 1920s saw a decade of Republican control in both the Executive and Legislative branches. This dominance was spearheaded by three consecutive Republican presidents: Warren G. Harding, Calvin Coolidge, and Herbert Hoover.
The political shift reflected a public desire to move away from wartime sacrifices and international entanglements, favoring domestic growth and conservative governance.
"Return to Normalcy":
This was the defining campaign slogan of Warren G. Harding in the 1920 election.
It resonated with an American public weary of World War I and the intense social reforms of the Progressive Era. The policy aimed for a reversion to pre-war life, focusing on stability, traditional values, and economic recovery without government upheaval.
Economic and Business Policies
Laissez-faire (In Practice):
While the term was not always used explicitly as a label, the Republican administrations practiced a form of limited government intervention that mirrored laissez-faire principles.
There was a significant shift toward reducing the power of regulatory agencies. Commissions established during the Progressive Era were often staffed with leaders who favored business interests over labor or consumer protection, effectively deregulating the economy from within.
Pro-Business Policies:
The government prioritized business interests as the primary engine for national prosperity. Key initiatives included:
Income Tax Reductions: Under Treasury Secretary Andrew Mellon, taxes were cut to encourage investment and consumer spending.
Protectionism: The government aimed to shield domestic industries from foreign competition.
Fordney-McCumber Tariff (1922):
A cornerstone of the pro-business agenda, this act significantly increased tariff rates on imported goods.
Impact: While it protected American manufacturers, it made it difficult for European nations (already struggling from WWI) to sell goods in the U.S. and repay their war debts. It also led to retaliatory tariffs globally, higher prices for consumers, and increased difficulties for American farmers.
Corruption and Scandals
The Teapot Dome Scandal:
The most infamous scandal of the Harding administration, involving the illegal leasing of federal oil reserves at Teapot Dome, Wyoming, and Elk Hills, California.
Key Figure: Secretary of the Interior Albert Fall accepted bribes (nearly \$400,000) from private oil companies in exchange for these leases. Fall became the first cabinet member in U.S. history to be sent to prison.
The scandal profoundly damaged the reputation of the Harding administration, highlighting the corruption risks associated with close government-business ties during the era.