1920s Prosperity and Economic Troubles

President Calvin Coolidge began his first full term in office, he believed the United States was prosperous and secure. But economic troubles lurked beneath the sparkling surface. MAIN IDEA The United States enjoyed widespread prosperity in the ______, but economic problems in Europe and an uneven distribution of wealth at home threatened to undermine the stability.

Calvin Coolidge ran for and won the presidency. Strongly pro-business and against government intervention, his policy goals were modest. When Coolidge asked ______ for a cut in taxes, lawmakers responded with a measure that lowered taxes for people who made more than $100,000 a year. However, most married couples made less than $3,500 a year, so the tax cuts affected only the wealthiest Americans.

The president also promoted laws to oversee the expansion of the new ______ and to regulate the growing radio business. At the same time, Coolidge did little to help farmers and people living in rural areas.

He twice vetoed a bill to aid farmers and did not support a federal government initiative to build dams on the ______ that would provide affordable electric power to that region of the country.

Economic problems in Europe and an uneven distribution of wealth at home threatened to undermine the stability.