President Harding/American Economy (Ch. 12, Sec. 2 & 3)1. Scandals Rocked Harding’s Administration2. Automobile & Airplane Changed American

Life3. American Economy Soared During 1920’s

What scandal’s rocked Harding’s presidency at the end?

• Fordney-McCumber Tariff blocked France & Britain from US markets

• Dawes Plan loaned Germany $2.5 Billion to pay France & Britain (so they could pay back US)

• But, his Ohio Gang (his corrupt friends) used their power to gain wealth

• Head of Veteran’s Bureau (Forbes) busted selling government supplies (private company)

• Teapot Dome Scandal saw Sec. of Interior take a $400,000 bribe (leased land-oil reserves)

How did the automobile and the airplane change life in America?

• Cars gave people (families) mobility (urban sprawl, travel, entertainment)

• Construction of paved roads (Route 66) became a necessity & connected America

• Gasoline stations, motels, restaurants (fast food), & shopping centers sprang up

• Airplanes were used to deliver the mail (first used in 1918)

• Airlines soon developed as planes were used for passenger flights (Trans-Atlantic in 1927)

What caused the American economy to soar during the 1920’s?

• The average annual income of US grew by more than 35%

• Electricity caused a revolution in household appliances (convenience)

• Modern advertising targeted people’s desire to be young, beautiful, healthy, & wealthy

• Many people began to buy goods on credit (installment plan)

• Productivity increased & many businesses expanded (mergers, chains)