1920’s Business and Politics

Henry Ford and the Car

• Makes cars cheap so all can afford them

• Pays his workers well so they can buy cars

• Uses the assembly line method to speed up production– car being built moved on a conveyor belt to

different workers

Impact of Ford

• Productivity increases • New businesses start (gas stations, repair

shops)• Suburbs grow – people could live farther from

cities • Growth of welfare capitalism– Companies give benefits (sick leave, overtime, etc)

to workers so they are happy and loyal

New Products

• Refrigerators and vacuum cleaners become popular – gives women more free time

• Radio makes people more aware of world events

• Airplanes begin to be used for passenger travel

New Ways of Buying and Selling

• Companies use persuasive ads and sponsor radio shows

• Installment buying – paying for an item over time in small amounts (aka credit) – Allows people to buy expensive products – Can put people into debt

Warren G. Harding’s Presidency

• Wants small government and big business • Cut the budget and gave tax cuts to the

wealthy• Signed the Fordney-McCumber Tariff– Raised tariffs (tax on imports) to help American

farmers make more $$$

Calvin Coolidge’s Presidency

• Believed in the power of business to help country grow, fund charities, and promote culture

• Continued tax and budget cuts • Decreased regulations on business (means the

gov’t would not be watching what they did)

Lasting Impacts of WWI

• Formers Allies couldn’t pay back loans and Germany couldn’t pay reparations

• Washington Naval Conference – Nations agreed to cut size of navies to avoid more

war• Kellogg-Briand Pact – Nations agreed to outlaw war – but no way to

enforce if pact is broken