Chapter 13 Section 2 Objectives How did Republican policies encourage economic growth How did the Harding administrations probusiness policies affect the US economy Why did the movement to pass the ERA fail ID: 387713
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Slide1
The Republicans in PowerChapter 13 Section 2
Objectives
How did Republican policies encourage economic growth?
How did the Harding administration’s pro-business policies affect the US economy?
Why did the movement to pass the ERA fail?
How did the Republican Party overcome the political scandals of the Harding administration?
What issues affected the outcome of the 1928 election?Slide2
Republican Confidence in 1920 *The Republican party felt they were going to win the 1920 election because:
The democrats were still hung up on the League of Nations
Strikes and unrest put a bad light on the democratic party
Warren G. Harding wasn’t considered overly bright but he had broad appeal, was friendly and looked presidential
Harding ran under a pro-business platform and promised a return to “normalcy” . He said we need healing and restoration not heroics and revolution
*He won in a landslide*Slide3
Harding’s Pro-Business Administration
“Less government in business and more business in government”
His cabinet included business people like Andrew Mellon as Secretary of the Treasury and Herbert Hoover as Secretary of Commerce
His Two Economic Goals
Reduce the national debt
To promote economic growthSlide4
Harding’s Economic Decisions
Charles Dawes as head of the Bureau of the Budget slashed government spending and created a surplus
Fordney-McCumber Tariff Act- pushed tariffs on manufactured goods to their all-time highs. High prices and profits
Eliminated high taxes on the wealthy. Mellon felt that the wealth of the rich would trickle down to the lower classes.
Result
By 1923 the situation seemed rosy- unemployment was low and most economic sectors were boomingSlide5
The Effects of Republican Policies
The increased wealth increased mergers
By 1930 200 corporations controlled half the nations corporate wealth
From 1923 to 1929 corporate profits increased by 60% and workers income increased by 10%
Some industries like textiles faced pay cuts and unemployment
Farmers had it real rough- shrinking markets, debt, low prices and high interest rates
Unions lost out in the courts and in government. Yellow-dog contracts and the American Plan sought union free shopsSlide6
New Directions for Women
Women had just won the right to vote with the 19
th
Amendment but it didn’t seem to change women’s status very much
Working conditions were a divisive issue among women’s rights activists-
Feminists
The
Equal Rights Amendment
(ERA) was not universally supported. Some women, like Mary Anderson- head of the Women’s Bureau, felt that if they were granted the same rights as men they might lose their progressive era rights like working hours and working conditions.Slide7
The Harding Scandals
The “Ohio Gang”- Harding’s friends enriched themselves because of their connection to the president.
Charles Forbes, director of the Veteran’s Bureau, made millions through corrupt schemes
Attorney General Harry Daugherty was taking bribes
The Big One- The Teapot Dome scandal- Secretary of the Interior Albert Fall had naval oil reserves in the Teapot Dome reserves in Wyoming shifted to his control and Fall then granted private leases to the oil in exchange for cash, cattle and loans.
*Harding wasn’t guilty on any of this and he “escaped” humiliation by having a fatal heart attack before most of it became publicSlide8
Coolidge Takes Charge
Vice president Calvin “Silent Cal” Coolidge was a quiet reserved guy who immediately fired anybody involved in scandals to restore the reputation of the presidency
Coolidge was even more pro-business than Harding and the booming economy got him elected in 1924 by a comfortable margin.
Not everybody was happy because the prosperity was not enjoyed by allSlide9
Coolidge’s Pro-Business Position
Coolidge said, “The business of America is business.”
Pro-business legislation like the
Revenue Act of 1926
was designed to help the rich and the country:
Repealed the gift tax
Cut estate taxes in half
Reduced taxes on the wealthy
Coolidge also cut spending to reduce the national deficit by vetoing spending bills like:
A bonus bill to provide aid to WW1 veterans
McNary
-Haugen Bill which would have bought farmer’s surpluses
Coolidge chose not to run for re-election- being President was too “burdensome”Slide10
The Election of 1928
Republican Herbert Hoover ran against Democratic NY Governor Alfred E. Smith
Smith had a lot of urban immigrant support but he had a few factors against him like:
Being Catholic- might listen to the Pope
Opposition to prohibition
Ties to Tammany Hall
His accent which many Americans thought was un American
The strong economy helped Hoover win the election with 58% of the vote