The Business of America Under Coolidge How Does Coolidge’s Conservative Policies create Economic Growth During the 1920s?
Industry flourished under Coolidge Coolidge believes in Laissez Faire economic system, a very pro- business attitude Low taxes, easy credit = more profits, able to expand Keeps tariffs high on foreign imports Investment in stock market Result: Wages and productivity increases
The Automobile Spurs Growth Paved roads and highways are built Best known is Route 66 from Chicago to LA Route 66 has businesses along highways including gas stations, motels, restaurants First traffic lights are put in major cities First underwater tunnel for cars is built connecting NJ & NY (Holland Tunnel), also first cloverleaf traffic patter built in NJ Urban Sprawl: cities grow as workers able to drive to work faster, houses now come with garages
Airline Industry Begins Post WWI, planes used to transport mail Lindbergh & Earhart prove airplanes can be viable transportation Pan American Airways forms, begins carrying both passengers and packages
Standard of Living Rises Average annual income rises 35% Advances in electricity give power to more people Electrical appliances change life in the 20s Modern Advertising begins in the 20s Electric Iron Refrigerator Washing Machine
Superficial Prosperity Signs of problems to come were ignored Growing income gap between workers & managers Iron, RR, farming industries suffering People buying things on credit, monthly payments more than they can afford Overvalued homes & land People gambling on stock market