Section 3 The Business of America Chapter 12 Section 3 The Business of America

Calvin Coolidge Goal was to keep government interference in business to a minimum and allow private enterprise to flourish Placed high tariffs on foreign imports Wages rose Productivity increased

Impact of the Automobile Paved roads – Route 66 Architectural style of homes- garages, driveways Gas stations, repair shops, public garages, motels, shopping centers, etc. Young people become more independent Workers live miles from their jobs Status symbol

Standard of Living Soars Expansion of electricity – refrigerators, toasters, washers Growth of modern advertising

Superficial Prosperity Productivity grows at 50% Income gap between workers and managers grows However, the steel, railroads, and farming industries struggled Farmers producing more food than needed, driving down food prices

Buying Goods on Credit Installment plan- allowed people to buy goods over extended period, without having too put down much money at low interest rates Banks provided low interest rates Advertisers push idea of credit

1920’s Economic Report Use the attached charts to answer the following questions Were the 1920’s a time of economic growth or stagnation? What is your prediction for the economy of the 1930’s?