Unit 5 - The Business of America

President Calvin Coolidge Pro-business “The chief business of the American people is business” Republican policies Favored low taxes High profits for businesses Gave businesses more credit to expand Low govt. influence Private enterprise should flourish High tariffs Reduced income taxes – more to spend

Impact of the Automobile Henry Ford Created automobile assembly line Allowed for mass production of cars Cheap cars were affordable More people could buy them Introduced $5 work day

Impact of the Automobile Construction of paved roads Houses with garage or carport and driveway Growth of car-associated businesses Gas station Motels Increased mobility Liberated rural families Vacations in far away places Urban Sprawl Spreading of cities Cars can be used to commute to city center

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America’s standard of living increases 1920s – time of economic prosperity Americans owned 40% of world’s wealth Average income increased 35% Industrial production rose tremendously National income increased over 70%

Airplanes Commercial airlines Carried cargo and passengers

Electrical conveniences Electricity can be transmitted long distances Electrical appliances Dishwasher, washing machine, vacuum cleaner Freed housewives from household work

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Advertising Aimed at people’s desires for youth, beauty Brand names Luxury goods viewed as necessities

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Superficial Prosperity Increased production Productivity increases – more goods produced Chain stores sprouted selling goods Incomes up

Superficial Prosperity Problems Growing income gap between workers and managers Not all industries prospered Iron and railroads Farm production increased leading to lower prices People needed to keep buying

Buying Goods on credit Installment plan Goods purchased with little money up front Allowed people to buy goods and pay over time Banks provided low interest rates Allowed Americans to keep buying