Chapter 20 Section 3Chapter 20 Section 3
Business in America and Business in America and Superficial ProsperitySuperficial Prosperity
Model T’s Weren’t the only Model T’s Weren’t the only VehiclesVehicles
QuestionQuestion: : How many vehicles were How many vehicles were on the road in 1927?on the road in 1927?
AnswerAnswer: : 20 million20 million
American Industry American Industry FlourishFlourish
Republican Coolidge is President Republican Coolidge is President – Fit into the pro-business spirit Fit into the pro-business spirit
of 1920’sof 1920’s– Favored government policies of Favored government policies of
low taxes and high profitslow taxes and high profits– Minimum government Minimum government
interference in business and interference in business and allow private industry flourishallow private industry flourish
Calvin CoolidgeCalvin Coolidge
Impact of the automobileImpact of the automobile
Literally changed the Literally changed the American LandscapeAmerican Landscape– Paved roadsPaved roads
Architectural styles with garages Architectural styles with garages and driveways (smaller lawn)and driveways (smaller lawn)
New businesses (gas stations, New businesses (gas stations, repair shops, motels, shopping)repair shops, motels, shopping)
Tunnels, bridges, and Tunnels, bridges, and intersections with lightsintersections with lights
Liberated the isolated rural Liberated the isolated rural familyfamily
Women and young people Women and young people independentindependent
Urban sprawl – workers living Urban sprawl – workers living miles from jobmiles from job
Provided economic base for some Provided economic base for some cities (car manufacturers)cities (car manufacturers)
Symbolized success of free Symbolized success of free enterprise and the Coolidge era enterprise and the Coolidge era (live with little money yet own (live with little money yet own their own automobile)their own automobile)
The Young Airplane The Young Airplane IndustryIndustry
Airplanes Airplanes began as began as mail carrying mail carrying service for service for US Post US Post OfficeOffice
Peacetime means of Peacetime means of transportation with transportation with development of weather development of weather forecasting, radios on board, forecasting, radios on board, and navigational instrumentsand navigational instruments
Henry Ford made Henry Ford made a trimotor a trimotor airplane in 1926airplane in 1926
Charles Charles Lindbergh made Lindbergh made transatlantic transatlantic flightsflights
Amelia Amelia Earhart Earhart helped helped promote promote cargo & cargo & commercial commercial airlinesairlines
Lockheed Company porduced Lockheed Company porduced single-engine plane, the Vegasingle-engine plane, the Vega
Pan American Airways (1927)Pan American Airways (1927)–First transatlantic passenger First transatlantic passenger flightsflights
America’s Standard America’s Standard of Living Soars of Living Soars
Electrical Conveniences Electrical Conveniences (Alternating Current)(Alternating Current)– Factories used electricity to run Factories used electricity to run
machinesmachines– No longer restricted to cities No longer restricted to cities – Appliances made life easier for Appliances made life easier for
housewives housewives – Fed trend of women workersFed trend of women workers
The Dawn of Modern The Dawn of Modern AdvertisingAdvertising– Advertising agencies hiring Advertising agencies hiring
psychologists to study the psychologists to study the appeal/desire of American publicappeal/desire of American public
– Slogans doubled sales for someSlogans doubled sales for some– Advertising branches out to other Advertising branches out to other
aspects of life (charities, etc…)aspects of life (charities, etc…)
A Superficial ProsperityA Superficial Prosperity
Most thought prosperity would go on forever
Producing great quantity of goods
Businesses expanded with increased productivity
Companies merged Chain stores
sprouted
Congress passed law allowing National Banks to branch within cities of main office
The income gap between workers & managers was growing with businesses
Not all industries were prosperous –Railroads–Iron–Farmers suffering losses
Buying goods on credit
“dollar down and a dollar forever” installment plans – buy goods over
extended period of time Banks provided low interest rates
and advertisers pushed the installment plan
No one was looking at future problems
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