The Business of America Chapter 12, Section 3

The Economics of Calvin Coolidge President Calvin Coolidge: low taxes, high business profits – Provided business with more available credit – Minimize government interference with business practices – High tariffs on foreign imports – Reduced income taxes…more money to spend

The Impact of the Automobile 2. Paved roads are constructed 3. People settle in towns along major routes 4. Autos lead to rapid construction of businesses (gas stations, repair shops, etc… 5. Allowed workers to be mobile-URBAN SPRAWL 1. Automobile is mass produced

THE AMERICAN AUTOMOBILE Auto Industry symbolized success of free enterprise Late 1920s: 80% of vehicles in the world were owned by Americans Autos became…. – Symbols of status – Cause for innovations in architecture—now houses were built with garages, driveways and smaller lawns

America’s Superficial Prosperity Superficial-- What’s that mean? – Productivity Rose – Businesses expanded – Companies merged Problems: – Wage gap increased between management & workers – iron & coal were not profiting, f – farms were losing money (overproduction caused prices to drop)

Buying on Credit Installment Plan: enabled people to buy goods over extended periods – Banks provided $ at low interest – Advertisers pushed the credit plans – People were buying goods without paying upfront, going into debt Credit allowed advertisers a way to promote the big ticket items of the 1920s