1. The Business of America Under Coolidge
How Does Coolidge’s Conservative Policies create Economic Growth During the 1920s?

2. Business flourished under Coolidge
Coolidge easily wins 1924 “re-election”
Coolidge believes in Laissez Faire economic system, a very pro- business attitude
Low taxes, easy credit
Keeps tariffs high on foreign imports
Investment in stock market
Result: Companies make record profits, increase productivity, expand in size and pay workers higher wages

3. The Automobile Spurs Growth
Paved roads and highways are built, best known is Route 66 connecting Chicago to LA
Route 66 has businesses along highways including gas stations, motels, restaurants
Road improvements incl: first traffic lights, cloverfied traffic pattern & first underwater tunnel (Holland Tunnel connects NJ & NY)
More cars creates urban sprawl: cities grow “out” as workers able to drive to work faster

4. Rise of Consumerism
Average annual income rises 35%, people begin buying more
More electricity in homes = more electrical appliances
Installment plans available to pay for expensive items “enjoy now…pay later” (but pay with interest)
More consumerism creates modern advertising
Vacuum
Electric Iron
Refrigerator
Washing Machine

5. Superficial Prosperity
Signs of problems to come were ignored
Growing income gap between workers & managers (esp due to tax cuts for rich)
RR & farming industries declined
People buying things on installment plan (credit) monthly payments more than they can afford
Overvalued homes & land
People gambling on stock market