1. Focus Question: “The Business of America is Business.
Explain the meaning of the following quote:
“The Business of America is Business.
The man who builds a factory builds a temple.
The man who works there worships there.”
-Calvin Coolidge

2. The Business of America
The Conservative Resurgence of the 1920s

3. The Return to Normalcy The 1920s were a decade of reaction
America felt exhausted by the war
Many felt that progressive reforms were too fast and too furious
Many wanted a breathing space
Return the U.S. to the way it was before the war.

4. Business Practices Government worked to assist business
Adopt a laissez-faire approach
Promote investment
Fit the conservative policies of Harding and Coolidge

5. Andrew Mellon Secretary of the Treasury, 1921-1932 Major economic plan
Increase investment
Reduce the national debt
Free up capital for investment
Promotes growth industries
“Trickle Down Economics”

6. Results Number of Millionaires tripled More money invested in business
New construction boomed
The Stock Market Soared.

7. Role of Demand Economies are fueled by Demand
If Demand is low, Supply loses importance
The 1920s demand was built by one major industry and two lesser ones

9. Shifting Consumer Practices
Industrial Productivity was very high
Businesses required to sell their products
Most Americans were frugal
Avoid debt
Save money for the rainy day
Many more worked below the poverty rate

10. Dawn of Modern Advertising
Persuade people to buy what is not needed
Psychological approach
Approached sales with science!
Coined new terms and insecurities

12. Planned Obsolescence Americans expected high quality goods
Expect goods to last
Manufacturers wanted people to buy new products
Limit the lifespan of items
Sponsor new models with minimal shifts

13. Credit People would buy without going into debt
Business had to find ways to stretch the dollar
Installment plans
Credit cards
Layaway plans
Increased debt loads dramatically

14. Creation of a Consumer Culture
Americans become enamored of new gadgets
Labor-saving devices
Radios
Automobiles
A form of materialism little seen outside the very wealthy
Profound Impact on the country