Chapter 20 Section 3 Business in America and Superficial Prosperity

Model T’s Weren’t the only Vehicles

Question: How many vehicles were on the road in 1927? Answer: 20 million

American Industry Flourish Republican Coolidge is President Fit into the pro-business spirit of 1920’s Favored government policies of low taxes and high profits Minimum government interference in business and allow private industry flourish

Calvin Coolidge

Impact of the automobile Literally changed the American Landscape Paved roads

Architectural styles with garages and driveways (smaller lawn) New businesses (gas stations, repair shops, motels, shopping)

Tunnels, bridges, and intersections with lights

Liberated the isolated rural family Women and young people independent

Urban sprawl – workers living miles from job Provided economic base for some cities (car manufacturers) Symbolized success of free enterprise and the Coolidge era (live with little money yet own their own automobile)

The Young Airplane Industry Airplanes began as mail carrying service for US Post Office

Peacetime means of transportation with development of weather forecasting, radios on board, and navigational instruments

Henry Ford made a trimotor airplane in 1926 Charles Lindbergh made transatlantic flights

Amelia Earhart helped promote cargo & commercial airlines

Lockheed Company porduced single-engine plane, the Vega Pan American Airways (1927) First transatlantic passenger flights

America’s Standard of Living Soars Electrical Conveniences (Alternating Current) Factories used electricity to run machines No longer restricted to cities Appliances made life easier for housewives Fed trend of women workers

The Dawn of Modern Advertising Advertising agencies hiring psychologists to study the appeal/desire of American public Slogans doubled sales for some Advertising branches out to other aspects of life (charities, etc…)

A Superficial Prosperity Most thought prosperity would go on forever

Producing great quantity of goods Businesses expanded with increased productivity Companies merged Chain stores sprouted

Congress passed law allowing National Banks to branch within cities of main office The income gap between workers & managers was growing with businesses

Not all industries were prosperous Railroads Iron Farmers suffering losses

Buying goods on credit “dollar down and a dollar forever” installment plans – buy goods over extended period of time Banks provided low interest rates and advertisers pushed the installment plan No one was looking at future problems