Warren Harding was one of the best-liked men of his generation. He was easy going, charming, and loved people. However his nice guy attitude led him to be taken advantage of by his evil associates dubbed the "Ohio Gang." Harding hated to hurt people's feelings; especially those of his friends by saying "no"; and political leeches capitalized on this weakness.
After being established in office, Harding crushed the reform movement sparked in the Progressive era. The Old Guard pleaded that not only the government's hand should be kept off of business, but also government should help guide business along the path to profits. Harding initiated these practices and set the tone of the Republican policies for the rest of the decade.
In the beginning of the 1920's the supreme court destroyed progressive legislation. It took away a federal child-labor law and restricted government intervention in the economy. In the case of Adkins vs. Children's hospital, the Court reversed its own reasoning in Muller vs. Oregon which had declared women to deserve special protection in the workplace and invalidated a minimum-wage law for women. It argued that now that women have the right to vote, they were the legal equals of men and could no longer be protected by special legislation.
Under Harding, corporations could expand and relax. Antitrust laws were usually ignored. The Interstate Commerce Commission was dominated by men who were sympathetic to the railroads.
Unions shrank during Harding's presidency particularly because of Harding's hostile political environment. Membership shriveled by nearly 30 percent between 1920 and 1930.
Veterans, however were one of the only groups to benefit from the War. Congress in 1921 created the Veteran's Bureau authorizing to operate hospitals and provide vocational rehabilitation for the disabled. The American Legion was founded in Paris in 1919 and they met periodically to renew old hardships and let off steam in horseplay. In the Adjusted Compensation Act, every soldier was guaranteed an insurance policy in twenty years.
Source: American Pageant Textbook
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