The Business of America Chapter 20, Section 3

“The chief business of the American people is business…the man who builds a factory builds a temple – the man who works there worships there.” Calvin Coolidge

Free Enterprise Coolidge and Republicans wanted to minimize gov’t. interference in business and to allow private enterprise to flourish

The Impact of the Automobile Automobile changes America. New architectural styles. New roads. Traffic signals. Underwater tunnels (NY-NJ)

Automobile changes American social landscape Rural families can travel to cities more often More vacation opportunities New dating opportunities Workers can commute to work Cities spread out – urban sprawl

Automobile industry provided an economic base for parts of Michigan (Detroit – “Motor City”) and Ohio.

Airplane industry Airplane industry begins as mail-carrying. Slowly develops into a passenger-carrying business.

America’s Standard of Living 1920 – 1929 America prospers 40% of world’s wealth Average annual income rose from $522 - $705 Electricity reached out to suburbs. More and more homes had electricity.

Advertising Ad agencies studied how to appeal to people’s desires.

Businesses Grew As productivity increased, businesses expanded.

Dark Clouds on the Horizon As businesses grew, the income gap between workers and managers grew too. Iron and railroad industries struggled. Farmers suffered losses.

Credit Americans bought the goods that they demanded on installment plans – a way to buy goods over an extended period without having to put much money down. “a dollar down and a dollar forever” Americans focused on the present, with no concern for the future.

Calvin Coolidge – economy and a frugal way of life The American Public – lived in the present, threw all care to the wind