20-3: The Business of America

Automobiles Helped the economy to boom Spurred the building of paved roads, service stations, garages, etc. Changed architectural styles Gave people greater freedom to travel Reduced the isolation of farm life Led to urban sprawl Gave Americans a new status symbol Company or Product: Model T. Ford

Airplane Industry Established a new means of transportation for goods and people Gave people greater freedom to travel Company or Product: Lockheed Company

Alternating Electric Current Made it possible to distribute electric power over greater areas Led to the electrification of homes and widespread use of electrical appliances Made housewives work easier Led to more uniform, conformist lifestyles Helped the economy to boom Products: Electric refrigerators, toasters, vacuums etc.

Modern Advertising Created greater demand for consumer goods Increased sales and profits Turned luxury items into necessities Helped the economy boom Product Example: Listerine

Installment Plan Helped the economy boom Helped to create a false sense of prosperity Allowed people to buy goods over an extended period of time without having to put up much money at the time of purchase Company or Product: Automobiles

Why should Americans in the 1920s have shown greater concern for their future? “Clouds in the Blue Skies of Prosperity” A growing income gap between workers and management The possibility that Installment buying was out of hand and that it represented a false prosperity Losses suffered by farmers and mining Companies Lack of true prosperity in the iron and railroad industries

Urban Sprawl Cities spread in all directions, as the automobile allows people to live further away from their jobs