12.3 The Business of America Is Business Calvin Coolidge = pro business Business boom Standard of living soared.

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12.3 The Business of America Is Business Calvin Coolidge = pro business Business boom Standard of living soared

Coolidge & Hoover favor Business gov policies to keep taxes low and profits high Gov interference at a minimum New technology increased productivity & wages

Age of the Automobile Paved roads built across America Gas stations, repair shops, motels, garages, shopping centers Homes built with garage or carport Traffic signals, Suburbs grow as commutes are driven

Airplane industry Mail carrying by 1920 Weather forecasting with radios, navigation equip Cargo & commercial airlines by 1926 –Amelia Earhart & Charles Lindbergh Trans Atlantic flights –Pan American Airlines: 1927: first trans Atlantic passenger flights

Standard of Living Average annual income: up from $522 to $705 Factories used electricity More homes got electric power Farms by mid-30s Rich had refrigerators, ranges, toasters

Modern Advertising Agencies hired psychologists to design ads Sales soared

Prosperity was limited Warning signs: –Over production of goods- Chain stores, 5 & Dimes, spread rapidly –Huge gap between Rich & Poor Managers vs. Workers –Buying on Credit: Installment plan A dollar down; a dollar forever –Farmers never saw profits

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