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Harding created taxes on European goods due to the fact that Great Britain and France owed the US. They owed America 10 billion dollars they borrowed. Tariffs created a demand for European goods which fueled Europe's economy. They did this so the US would end up getting paid back. The US also used Dawes plan. The plan was to Loan Germany the money they owed Europe from war reparations. This money that Europe now had, went back to America since Europe was in debt to America. Harding ran into the problem of corruption. His administration used graft to make money off of their positions with the presidents. The Teapot Dome scandal was the worst of all. Federal oil reserves fell into the hands of private companies due to a cabinet member of Hardings. The secretary of the Interior Albert Fall sold the land for his own profit. This was the final scandal that ripped apart Hardings administration and put VP Calvin Coolidge as president.

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Credit

The 1920's was the dawn of a new economic age. The idea of paying things off slowly over time was introduced to the American people. This idea is called installment plans or paying with credit. This meant a person could make a small down payment and then pay the rest over time. This strengthened the US economy because people began buying all of the goods they were not able to buy before. Advertising agencies noticed the spike in demand for goods. These agencies hired psychologists to study how people relate to things so they could relate their advertisements to the people to sell more goods. More catchy sayings caught on with the people and sparked their attention to buy the products. During this time, electrical conveniences became more available to the public. Electricity was no longer restricted to the cities and now became available in suburbs. People began using electric irons, refrigerators, and stoves. All of these things were being paid on credit. This meant they were only paid for in part and nothing has been paid in full. During this time, people believed that they were Scott free with their new goods but really they did not even own them. These cuased people to believe that they had more money than they actually did in the bank. This threw people into bankruptcy. Farmers were hurt especially hard by this because of the fact that they were not the industries. They were stuck on the back end of this boom because of the fact they were never able to benefit from the new amenities the people in the cities had. They were not able to use credit or pay off their debt with their low-income jobs.

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Airplane Industry
During the 1920's, airplanes were used to transport mail. The economic boom caused advances in weather forecasting. Due to this advancement, planes started carrying radios and navigational instruments. These advancements lead to transcontinental flights. With this idea cargo shipping and transporting became more popular. Pan American Airways inaugurated the first transatlantic passenger flights that speeded up transportation for life. All of this allowed businesses to transport goods and resources faster. This impacted the railroads becuase due to their slow speeds, they were becoming obsolete.

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AutomobilesDuring the Economic Boom, automobiles became a thing of the American culture. Some were beginning to purchase cars with their hard earned money but most people were buying the cars with credit. People buying the cars established paved roads that were suitable for driving in all weather. The most famous road was Route 66. The Route stretched from Califonia to Chicago. People took this route to move west. People started to settle near the route so towns began popping up on the route. Automobile shops and garages also had to accommodate for breaking down cars which brought a new business. Automobiles also affected architecture because new houses were built with a garage or carport to store the automobiles. Cars allowed the once stuck rural families to travel to town and shop. Workers were now able to live miles away from their jobs due to the fact that they can travel farther without the railroad. The railroad took a hit during this time due to the fact that cars and trucks replaced short hall shipping.

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Carter and King Jazzing Orchestra in 1921 (picture was taken in Houston, Texas)

During the 1920s Jazz spread quickly throughout the country. Stretching from New York to Kansas City, Jazz soon became the most popular form of music. This music drew white people into black nightclubs. This exposed them to their culture which they now seemed to share. The Jazz age brought prosperity to the African American culture in the north. The African American was now in the north and was not leaving soon.

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Between 1910 and 1920 hundreds of thousands of African Americans left their homes and jobs in the south and started heading north. They moved north to find jobs in the new industrial age. This movement was called The Great Migration. With the low wages, lack of jobs and segregation in the south for the African Americans, they felt like they would be more successful in the developing north. The big cities and their people were not totally okay with the influx of African American culture now in the cities which caused over 20 race riots across the north.