1920’s Business and Politics
Henry Ford and the Car Makes cars cheap so all can afford them Pays his workers well so they can buy cars Uses the assembly line method to speed up production – car being built moved on a conveyor belt to different workers
Impact of Ford Productivity increases New businesses start (gas stations, repair shops) Suburbs grow – people could live farther from cities Growth of welfare capitalism – Companies give benefits (sick leave, overtime, etc) to workers so they are happy and loyal
New Products Refrigerators and vacuum cleaners become popular – gives women more free time Radio makes people more aware of world events Airplanes begin to be used for passenger travel
New Ways of Buying and Selling Companies use persuasive ads and sponsor radio shows Installment buying – paying for an item over time in small amounts (aka credit) – Allows people to buy expensive products – Can put people into debt
Warren G. Harding’s Presidency Wants small government and big business Cut the budget and gave tax cuts to the wealthy Signed the Fordney-McCumber Tariff – Raised tariffs (tax on imports) to help American farmers make more $$$
Calvin Coolidge’s Presidency Believed in the power of business to help country grow, fund charities, and promote culture Continued tax and budget cuts Decreased regulations on business (means the gov’t would not be watching what they did)
Lasting Impacts of WWI Formers Allies couldn’t pay back loans and Germany couldn’t pay reparations Washington Naval Conference – Nations agreed to cut size of navies to avoid more war Kellogg-Briand Pact – Nations agreed to outlaw war – but no way to enforce if pact is broken