1. Section 3 The Business of America
Chapter 12
Section 3
The Business of America

2. Calvin Coolidge
Goal was to keep government interference in business to a minimum and allow private enterprise to flourish
Placed high tariffs on foreign imports
Wages rose
Productivity increased

3. Impact of the Automobile
Paved roads – Route 66
Architectural style of homes- garages, driveways
Gas stations, repair shops, public garages, motels, shopping centers, etc.
Young people become more independent
Workers live miles from their jobs
Status symbol

4. Standard of Living Soars
Expansion of electricity – refrigerators, toasters, washers
Growth of modern advertising

5. Superficial Prosperity
Productivity grows at 50%
Income gap between workers and managers grows
However, the steel, railroads, and farming industries struggled
Farmers producing more food than needed, driving down food prices

6. Buying Goods on Credit
Installment plan- allowed people to buy goods over extended period, without having too put down much money at low interest rates
Banks provided low interest rates
Advertisers push idea of credit

7. 1920’s Economic Report
Use the attached charts to answer the following questions
Were the 1920’s a time of economic growth or stagnation?
What is your prediction for the economy of the 1930’s?