Chapter 12 Chapter 12 Section 3: Business of America
American Industries Flourish ► Calvin Coolidge said, “the chief business of American people is business”. ► Coolidge and his republican successor Herbert Hoover had a goal: to keep government interference in business to a minimum and to allow private enterprises to flourish. ► Coolidge’s administration continued to place high tariffs on foreign imports which helped American manufactures ► For most of the 1920s this approach seemed to work. ► People had more money in their pockets
Impact of the Automobile ► The automobile literally changed American landscape ► The legendary route 66 provided a route for people traveling west from Chicago to California. ► 1 st traffic signals began blinking in Detroit in early 1920s ► Allowed both women and young people to become more independent ► Auto industry symbolize the success of free enterprise system and the Coolidge era ► In the late 1920s about 80% of all registered motor vehicles in the world were in the U.S.
The Young Airplane Industry ► Airplane industry began as a mail carrying service for the U.S post office ► The first flight was in 1718 and was a disaster! ► Weather forecasting was a big help for pilots ► Planes began carrying radios and navigational instruments ► In 1926, Henry Ford made a motor airplane ► The Lockhead company produced a single engine plane called the Vega in 1927 ► It was one of the most popular transport airplanes of the late 1920’s
Electrical Conveniences ► Gasoline powered much of the economic boom in 1920 ► Electricity transformed the nation. ► The development of an AC electricity made it possible to distribute power over long distance These appliances made lives of house wives more simple and opened up their lives to the community
The Dawn of Modern Advertisement ► There were new goods flooding markets ► Companies hired psychologists to study how to appeal to people’s desires for youthfulness, beauty, health and wealth ► Business people applied to power for advertising to other areas of American life
Producing Great Quantities of Goods ► Productivity increased, business expanded ► There were many merges of companies that manufactured automobiles, steel, and electrical equipment ► Chain stores sprouted, selling groceries drugs, shoes and clothes. ► Five and –dime stores spread rapidly. ► The income gap between workers and managers increased as business grew ► Railroad and iron industries weren’t prosperous and farms suffered losses.
Buying goods on credit ► Easy credit provided a way for avg. income citizens to afford new consumer goods ► Banks provided the money at low interest ► The 1920s brought technological and economical changes, life seemed easier ► The installment plan enabled people to buy goods over an extended period w/out having to put down much money of the time of purchase.