After WWI ended, Harding’s administration targeted business as a means of rebuilding the country. What this entailed, however, included undermining striking laborers and largely siding with management in labor dispute issues over such things as minimum wage, unions, child labor, and so on. In addition to favoring management in labor disputes, Harding and his successor, Calvin Coolidge, enacted tax legislation that benefited the wealthy more so than any other group. In addition, because of administrative policy decisions, industries such as agriculture, textiles, and certain types of mining suffered greatly, and as a result, cities grew as people moved to urban areas to make a living. Many of them, however, remained trapped in a purgatory of sorts, looking for a better life but unable to get it, not unlike the people in The Great Gatsby’s valley of ashes.
Economically, the 1920s boasted great financial gain, at least for those of the upper class. Between 1922 and 1929, dividends from stock rose by 108 percent, corporate profits increased by 76 percent, and personal wages grew by 33 percent. Nick Carraway’s journey to the East to make his fortune in the bond business is not entirely unfounded. Largely because of improvements in technology, productivity increased while overall production costs decreased, and the economy grew. All this would come to a grinding halt, however, with the stock market crash of 1929, sending the U.S. into the greatest depression it has ever known. Fitzgerald, of course, couldn’t have forecasted the crash, but in The Great Gatsby, he does suggest, on one level, that society was living in excess and without curbing its appetite somewhat, ruin was just around the corner.
