chapter 20 section 3 business in america and superficial prosperity

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