 Coolidge was known to be a “low talker” with the nickname “Silent Cal” and was not as charismatic as Harding  He had very clear policies about business “The business of America is business”

 Coolidge did not believe in the government getting involved in big business  When farmers were looking for relief from the post war era he vetoed a bill (McNary- Haugen Farm Relief Bill) to buy their surplus twice  He allowed tax cuts for the wealthy (Revenue Act)  He denied extra benefits to veterans of WWI  Coolidge's period as president was marked by economic prosperity. He trimmed the FTC power over businesses  He supported Supreme Court decisions invalidating Progressive laws helping labor.  Inflation remained low while incomes increased by an average of 35% during this period

Laissez-faire

American Industries Flourish Coolidge’s Economic Policy Calvin Coolidge favors minimal government interference in business - allow private enterprise to flourish The Business of America 3 SECTION The Impact of the Automobile Cars change life—paved roads, gas stations, motels, shopping centers Give mobility to rural families, women, young people Workers live far from jobs, leads to urban sprawl (spread of cities) Auto industry economic base for some cities, boosts oil industry By late 1920s, 1 car for every 5 Americans Ch. 20

 Orphaned by the age of 9  Lived with uncle who had a strong work ethic  Hoover didn’t go to high school. He attended night school and learned bookkeeping, typing and mathematics  He earned his way through four years of Stanford working at various jobs on and off campus

 On October 22, 1928, Herbert Hoover gave the a speech during his presidential campaign entitled, "Principles and Ideals of the United States Government."  In that speech, Hoover said that the American system was based on "rugged individualism" and "self- reliance." Government, which had necessarily assumed unprecedented economic powers during World War I, should retreat, and cease to interfere with businesses.  He feared that federal relief programs would undermine individual character by making recipients dependent on the government

 On poverty, Hoover said that "Given the chance to go forward with the policies of the last eight years, we shall soon with the help of God, be in sight of the day when poverty will be banished from this nation", "We in America today are nearer to the final triumph over poverty than ever before in the history of any land”  Ironic???

 Hoover began his presidency with a burst of energy and enthusiasm that demonstrated his progressive political leanings.  Tried to improve the economic health of the nation's farms *** remember the problem was overproduction -> prices dropped…Federal Farm Board was created  Example of how voluntarism and cooperation among competitors could produce a more efficient economy without the government intervention

1. Rich got richer and poor got poorer. 2. Wild speculation on stocks 3. Agricultural overproduction and farm foreclosures. 4. Continuing decrease international trade caused by a terrible depression in Europe and our protective tariffs

 “It will take us 100 years to tell us whether you have helped us or hurt us, but you certainly didn’t leave us like you found us”  “Backbone of economy: ” Landscape changes Architectural changes Industry changes Urban sprawl Symbol of status and success 80% of cars in U.S. 3 SECTION

continued American Industries Flourish The Young Airplane Industry Airplane industry starts as mail service for U.S. Post Office Weather forecasting begins; planes carry radios, navigation tools Lockheed Company produces popular transport plane of late 1920s 1927, Pan American Airways inaugurates transatlantic flights 3 SECTION Ch. 20

Ellen Church became the world's first stewardess on May 15, 1930, working a flight from Oakland to Chicago for Boeing Air Transport, later known as United Air Lines. Miss Church is standing in front of the opened door.

3 SECTION Incomes Grow Average annual income rises over 35%, from $522 to $705 America’s Standard of Living Soars Electrical Conveniences Factories use electricity to run machines Development of alternating current gives electricity to suburbs By end of 1920s, more homes begin to have electrical appliances Appliances make housework easier, free women for other activities Appliances coincide with trend of women working outside home Ch. 20

continued America’s Standard of Living Soars The Dawn of Modern Advertising Advertising agencies hire psychologists to learn to appeal to public Make brand names familiar nationwide; push luxuries as necessities Businesspeople work with service groups - promote selves as benefactors of society 3 SECTION Ch. 20

“ modern” advertising - from product and price to using psychology

A Superficial Prosperity Producing Great Quantities of Goods Most Americans believe prosperity will last forever Productivity increasing, businesses expanding Mergers in auto industry, steel, electrical equipment, utilities Chain stores develop; national banks allowed to create branches Income gap between workers, managers grows Iron, railroad industries not prosperous; farms suffer losses 3 SECTION Ch. 20

 40% of families could afford new “gadgets” and electrical conveniences  42% of families made less than $10,000 per year (today)  Wealth lumped at top: highest 1% = bottom 42%  25,000 workers killed; 100,000 disabled per year 3 SECTION

continued A Superficial Prosperity Buying Goods on Credit Installment plan—pay for goods over extended period with interest Banks provide money at low interest rates Some economists, business owners think installment buying excessive Think is sign of fundamental weakness behind superficial prosperity 3 SECTION Ch. 20