The Booming Economy of the 1920s Government and Business working together

1920s Presidential Campaign Slogans Warren Harding (1920-1923) “Less government in business, more business in government.” Calvin Coolidge (1923-1928) “The business of America is business.” Herbert Hoover (1928-1932) “Change the attitude of government relations with business from that of interference to that of cooperation.” So what did they do?

Problem – read page 421 of your text

How do you know if an economy is health? What factors do you look at?

Some economic statistics of the 1920s 4% unemployment in 1929. Average annual income increase 35%. Real wages increase 30%. GNP nearly doubled. Worker productivity increase 50%. Corporate profits increased 38%. By 1929, 200 companies controlled 50% of the wealth in America. A&P Grocery – 5,000 stores in 1922, 17,500 in 1929. By 1929, 50% of American homes owned cars, 80% owned electric irons, 40% owned vacuum cleaners, and 25% owned washing machines. What does this tell you?

The economic impact of one product Automobile