Concise Summary on Prosperity and Depression

Topic Overview

  • Prosperity and Depression

Key Events and Leaders

  • Warren Harding

    • Elected after 8 years of Democratic presidency

    • Focused on appointing business-minded individuals to his Cabinet

    • Known for the "Ohio Gang" scandal involving friends exploiting positions

    • Died in 1923 under stress from scandals

    • Teapot Dome Scandal: Involvement of Albert Fall and bribery by oil executives

  • Calvin Coolidge

    • Sworn in quietly at family's farm; differed in style from Harding

    • Emphasized business growth, leading to economic recovery

    • Focused on consumer goods production

    • Oversaw a rise in incomes and manufactured goods in the economy

Economic Trends

  • Consumer Spending Changes

    • Increased consumer goods accessibility (radios, kitchens appliances, etc.)

    • Rise of Installment Buying: purchasing on credit, leading to increased consumer debt

    • By late 1920s, consumer debt exceeded federal budget

  • Stock Market Dynamics

    • Stock Market boom experienced in the 1920s with rising stock prices

    • Definitions:

    • Stock: represents ownership in a company

    • Bull Market: a period of rising stock prices and heightened trading activity

    • Late 1920s stock prices inflated beyond actual company values

International Relations

  • After WW1, U.S. adopted isolationist policy to avoid further conflict

  • Engagement in Latin America primarily for economic interests

  • The Soviet Union emerged as the first Communist state, advocating state ownership of resources

Peace Efforts

  • Kellogg-Briand Pact (1928): Treaty aimed at outlawing war but lacked enforcement mechanisms

  • Call for Disarmament: reduction of arms and military capacities