11 2 the business of government

11 2 the business of government

• 1.
  The Business of Government TheTwenties
• 2.
  Harding favors BigBusiness ● Upon his election, Harding immediately began putting in policies that favor big business o Biggest impact: Named Andrew Mellon his Secretary of Treasury o Mellon immediately reduced income taxes and reduced spending drastically, from $18 during WWI down to $3 billion
• 3.
  Harding favors BigBusiness ● Harding passed a 25% Tariff, increasing American Business o Europe responded with their own Tariff on American goods, hurting American Business abroad and the overall world economy ● Worked to reduce Government regulation of business
• 4.
  Ohio Gang CashesIn ● Harding was, by all accounts, a very likeable and friendly man o He was also, by most accounts, not a very good President o He relied on his friends, the “Ohio Gang,” to make decisions for him o Many of them were extremely corrupt, known for taking bribes.
• 5.
  Teapot Dome Scandal ●Secretary of the Interior Albert Fall arranged for a transfer of vital oil reserves from the Navy to the Interior Department o These were meant to be for the Navy’s use in times of emergency ● Fall immediately signed the reserves over to private oil companies in exchange for “loans,” (aka bribes) o Fall ended up sentenced to a year in prison for his crimes
• 6.
  The End ofHarding ● Harding was worried about his friends, but never did see the extent of the damage they did o Harding died of a Heart Attack on August 2, 1923. His Vice President, Calvin Coolidge, would take the Presidency o At first, Harding was mourned like no President since Lincoln, until the true depth of the corruption of his administration came to light
• 7.
  Silent Cal TakesOver ● Coolidge was different than his predecessor, Harding o Was much quieter, and took a much more measured tone with his speeches and interactions o Very honest, and while he trusted businesses and business men implicitly, he quickly threw out those in the administration who may be corrupt or activists bent on massive reforms
• 8.
  Coolidge and Business ●Coolidge held great admiration for business leaders o He cut the national debt and budget, lowered taxes, gave benefits to businesses o For his six years in office, the economy grew dramatically in a massive boom
• 9.
  All is notWell ● Farmers continued to struggle, their incomes decline as Urban incomes grow ● Jim Crow laws in the south continued to enforce segregation o Regardless of problems, Silent Cal remained silent; He believed the Government had no place to regulate social change
• 10.
  America’s Role inthe World ● The specter of World War I still loomed over the US o The Washington Naval Disarmament Conference settled disputes between Japan and the West, and convinced nations to limit construction of huge warships o The Kellogg-Briand Pact “outlawed” war “as an instrument of national policy.”  It was basically powerless, useless, and quickly forgotten by all who signed it
• 11.
  War Debts ● Coolidgeinsisted on the repayment of loans given to France and Britain during WWI o In order for Britain and France to repay debts, they had to be paid reparations by Germany, as laid out in the Treaty of Versaille o The US came up with a plan to try to make everything work, called the Dawes Plan
• 12.
  War Debts -The Dawes Plan ● The US gave loans to Germany ● Germany took said money and paid their reparations to Britain and France ● Britain and France took said money and paid back their War Debts to the US o The result was Germany owing the US money while Britain and France would be able to pay back. ● This entire thing made the US look heartless to the world, and cost the US in international standing
• 13.
  The End!