Lesson 1: The Harding Years

Lesson Focus

After WWI, America shifted from global engagement to an 'America First' policy. This lesson explores the push for business prosperity and a 'return to normalcy' under President Warren G. Harding's administration.

People to Know

Warren G. Harding

Learning Objectives

• Describe the accomplishments of the Washington Conference, which aimed to limit naval arms and ease tensions in the Pacific region.
• Explain the National Origins Act's provisions, which used a new quota system to permanently restrict immigration to the United States.
• Describe the major corruption scandals, like the Teapot Dome scandal, that marred President Harding's administration.

After World War I, Americans felt exhausted by global conflicts and government activism. They desired peace and prosperity at home.

In the 1920 election, Republican Warren G. Harding campaigned on a promise of a "return to normalcy," which signaled a retreat from President Wilson's internationalism. He offered a comforting contrast to Wilson's demanding leadership.

His landslide victory demonstrated that the nation wanted to focus on its own affairs, setting the stage for an era of pro-business policies.

To prevent another arms race after WWI, the Harding administration addressed growing naval competition and tensions in Asia.

During the Washington Conference of 1921-1922, major world powers negotiated treaties to limit naval buildups and respect China’s independence. The Five-Power Treaty froze navy sizes, and the Nine-Power Treaty formalized the Open Door policy.

Pay special attention: while the conference eased tensions, its agreements lacked enforcement, which limited their long-term effectiveness in preventing future conflicts.

Post-war fears of radicalism and prejudice against new immigrants from Southern and Eastern Europe created a demand to limit immigration.

Congress passed the Emergency Quota Act in 1921 and made it permanent with the National Origins Act of 1924. This law set strict quotas based on the 1890 census, favoring northern Europeans and completely excluding Japanese immigrants.

This policy drastically cut immigration, institutionalized discrimination, and severely damaged diplomatic relations with Japan.

Harding's pro-business stance meant a retreat from government regulation, known as laissez-faire.

His administration passed the Fordney-McCumber Act in 1922 to raise protective tariffs and created the Bureau of the Budget to cut government spending. These policies, along with tax cuts, were designed to help businesses grow with less interference.

As a result, the national debt was reduced and the economy prospered, but employers gained power while labor unions, facing the open shop and welfare capitalism, declined.

President Harding appointed several of his unqualified friends, known as the "Ohio Gang," to powerful government positions.

These officials used their influence to enrich themselves through corrupt deals. The most infamous example was the Teapot Dome scandal, where Secretary of the Interior Albert B. Fall took bribes to lease government oil reserves to private companies.

This corruption cost taxpayers millions, led to the imprisonment of a cabinet official, and severely tarnished the Harding administration's legacy.