The Business of America Under Coolidge

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Presentation transcript:

The Business of America Under Coolidge How Does Coolidge’s Conservative Policies create Economic Growth During the 1920s?

Business flourished under Coolidge Coolidge easily wins 1924 “re-election” Coolidge was pro-business & believes in Laissez Faire economics (keep govt out of business) Low taxes, easy credit so Americans spend $ Keeps tariffs high on foreign imports Investment in stock market Result: Economic boom, w/ companies making record profits, increasing productivity, and paying workers higher wages

The Automobile Spurs Growth Paved roads and highways are built, best known is Route 66 connecting Chicago to LA Road improvements incl: first traffic lights, cloverfield traffic pattern & first underwater tunnel (Holland Tunnel connects NJ & NY) More cars creates urban sprawl: cities grow “out” as workers able to drive to work faster

Rise of Consumerism Average annual income rises 35%, people begin buying more More electricity in homes = more electrical appliances Installment plans available to pay for expensive items “enjoy now…pay later” (but pay with interest) More consumerism creates modern advertising Vacuum Electric Iron Refrigerator Washing Machine

Superficial Prosperity Signs of problems to come were ignored by Coolidge Admin: Growing income gap between workers & management RR & farming industries declined Too many people going into debt due to installment plans Overvalued homes & land Too many people gambling on stock market

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