Chapter 12Chapter 12

Section 3: Business of Section 3: Business of AmericaAmerica

American Industries FlourishAmerican Industries Flourish

► Calvin Coolidge said, “the chief business of Calvin Coolidge said, “the chief business of American people is business”.American people is business”.

► Coolidge and his republican successor Coolidge and his republican successor Herbert Herbert HooverHoover had a goal: to keep government had a goal: to keep government interference in business to a minimum and to allow interference in business to a minimum and to allow private enterprises to flourish.private enterprises to flourish.

► Coolidge’s administration continued to place high Coolidge’s administration continued to place high tariffs on foreign imports which helped American tariffs on foreign imports which helped American manufacturesmanufactures

► For most of the 1920s this approach seemed to For most of the 1920s this approach seemed to work.work.

►People had more money in their pocketsPeople had more money in their pockets

Impact of the AutomobileImpact of the Automobile

► The automobile literally The automobile literally changed American changed American landscapelandscape

► The legendary route 66 The legendary route 66 provided a route for provided a route for people traveling west people traveling west from Chicago to from Chicago to California.California.

► 11stst traffic signals began traffic signals began blinking in Detroit in blinking in Detroit in early 1920searly 1920s

► Allowed both women Allowed both women and young people to and young people to become more become more independentindependent

► Auto industry Auto industry symbolize the success symbolize the success of free enterprise of free enterprise system and the system and the Coolidge eraCoolidge era

► In the late 1920s about In the late 1920s about 80% of all registered 80% of all registered motor vehicles in the motor vehicles in the world were in the U.S.world were in the U.S.

The Young Airplane IndustryThe Young Airplane Industry

► Airplane industry began as a mail carrying service Airplane industry began as a mail carrying service for the U.S post officefor the U.S post office

► The first flight was in 1718 and was a The first flight was in 1718 and was a disaster!disaster!► Weather forecasting was a big help for pilotsWeather forecasting was a big help for pilots► Planes began carrying radios and navigational Planes began carrying radios and navigational

instrumentsinstruments► In 1926, Henry Ford made a motor airplane In 1926, Henry Ford made a motor airplane ► The Lockhead company produced a single engine The Lockhead company produced a single engine

plane called plane called the Vegathe Vega in 1927 in 1927► It was one of the most popular transport airplanes It was one of the most popular transport airplanes

of the late 1920’sof the late 1920’s

Electrical ConveniencesElectrical Conveniences

► Gasoline powered Gasoline powered much of the economic much of the economic boom in 1920boom in 1920

► Electricity Electricity transformed the transformed the nation.nation.

► The development of The development of an AC electricity an AC electricity made it possible to made it possible to distribute power over distribute power over long distancelong distance

These appliances These appliances made lives of house made lives of house wives more simple wives more simple and opened up their and opened up their lives to the lives to the communitycommunity

The Dawn of Modern The Dawn of Modern AdvertisementAdvertisement

►There were new goods flooding There were new goods flooding marketsmarkets

► Companies hired psychologists to Companies hired psychologists to study how to appeal to people’s study how to appeal to people’s desires for youthfulness, beauty, desires for youthfulness, beauty, health and wealthhealth and wealth

►Business people applied to power for Business people applied to power for advertising to other areas of American advertising to other areas of American lifelife

Producing Great Quantities of Producing Great Quantities of GoodsGoods

► Productivity increased, Productivity increased, business expandedbusiness expanded

► There were many There were many merges of companies merges of companies that manufactured that manufactured automobiles, steel, automobiles, steel, and electrical and electrical equipmentequipment

► Chain stores sprouted, Chain stores sprouted, selling groceries selling groceries drugs, shoes and drugs, shoes and clothes. clothes.

► Five and –dime stores Five and –dime stores spread rapidly. spread rapidly.

► The income gap The income gap between workers and between workers and managers increased managers increased as business grewas business grew

► Railroad and iron Railroad and iron industries weren’t industries weren’t prosperous and farms prosperous and farms suffered losses. suffered losses.

Buying goods on creditBuying goods on credit

►Easy credit provided a way for avg. income Easy credit provided a way for avg. income citizens to afford new consumer goodscitizens to afford new consumer goods

►Banks provided the money at low interest Banks provided the money at low interest ►The 1920s brought technological and The 1920s brought technological and

economical changes, life seemed easiereconomical changes, life seemed easier►The installment plan enabled people to The installment plan enabled people to

buy goods over an extended period w/out buy goods over an extended period w/out having to put down much money of the having to put down much money of the time of purchase.time of purchase.