Chapter 12 Section 3 Notes Coolidge becomes President Harding’s VP (Republican) Gets elected in 1924. WHY? Sympathy for Harding Economy had gotten better Famous quote “Business of Am. People is business” Helped out businesses Paid less $$$ in taxes Kept high tariffs Made credit easy and cheap to get Very few rules limiting what businesses could do Opposite of Progressives Decided to not run again in 1928 Would have won… very popular

Automobile changes life in U.S. Before WWI – cars expensive, no credit Shortly after WWI – not an issue 1 car per 5 people in U.S. Ford Model T most popular 15 million sold by mid 1920s Less than $300 brand new! Led to change in architecture construction of buildings and businesses Gas Stations, Repair Shops, Garages Led to change in landscape Construction of paved roads Tunnels, Bridges, Highways Led to change in advertising Billboards, Radio, etc… Rural families not as isolated Could travel to cities whenever now All People vacationed more Urban sprawl Suburbs popped up around major cities Created a bunch of jobs (too many to list them all) Here in Michigan Texas and California (oil)

Airplanes become popular Technology improves during WWI 1st Major peacetime use in U.S. Delivering mail Lockheed Company 1st to mass produce planes Competition to go farther and faster More next chapter (Lindbergh/Earhart) By the late 1920’s passenger flights within the U.S. to major cities was common

Standard of Living Increases higher incomes but stuff cost more $ automobiles electricity started in cities spread to rural areas slowly appliances save people time refrigerator, stove, washing machine, etc…

Advertising industry spreads Print media, radio, billboards Come up with catchy slogans for non – essential products Businesses learn from U.S. Gov. success with Propaganda during WWI

Was economy in 1920’s as good as it seemed? Answer = No (Superficial Prosperity) or Fake Wealth Positives Workers more efficient 50% quicker More free time Better technology Overall higher quality life Negatives Big income gap Management rich Average workers not Overproduction some companies and farms go out of business Prices too low to be profitable in U.S., can’t sell overseas A lot of stuff bought on credit Installment Plans Loans directly from businesses Promise to pay back later (with interest) Problem if too much stuff is bought