When the Treaty of Versailles was signed, Theodore Roosevelt's Progressive Party collapsed, returning America to a two-party system. The rise of the Spanish Flu, as well as the general chaos which the Great War had created, ensured a post-war recession worldwide. In 1920, Republican president Warren G. Harding was elected to lead America. His campaign could be summed up into the following points;
- The creation of a "new normal" with the German Empire, tolerating its dominance over Europe, and opening trade again. However, the US would try to subvert their empire in any alternative way possible.
- The recognition of and mass investment into the USSR as the only state left in Europe capable or willing to oppose the German Empire.
- The creation of a new Atlantic Pact between Canada, the US, the CSA and Mexico to oppose German influence in the Americas.
- The advancement of civil rights, attempting to further restrict the Confederacy's autonomy and integrate them in the American union.
Harding's external policy is largely responsible for allowing America to regain its place as the world's prime industrial, financial and cultural centre. The 1920s, known in America as the Roaring Twenties, were characterised by excess, opulence, the glorification of technology, avant-garde culture and the prevalence of art deco.