1. The Business of America Main Idea: The prosperous 20’s led to a rise in the American standard of living. The US owned 40% of the world’s wealth Many Americans got “used to excess” during the 1920s.

2. American business changes American society 1.President’s Coolidge and Hoover promote business “the business of America is business”. 2.The Automotive industry is the backbone of American economy -80% of all cars registered in the world were in the USA. -Henry Ford and the Assembly line. P. 494

3. Between 1908-1927, Ford build 50% of the automobiles produced in the world, more than 15 million. Large numbers of identical cars made in identical way allowed for cheaper prices 1927, Model T - $290, Model A - $495 Part of Ford’s success was due to vertical consolidation – he controlled the businesses that made up the phases of the product’s development

4. – Automobile changes the landscape of America New Roads & Highways, garages (smaller lawns), traffic signals People can travel to work = Urban Sprawl = Suburbs Grow Allows rural people to travel = vacations New businesses rise (gas stations, repair shops, public garages, motels, tourist camps, and shopping centers) Ohio and Michigan become the leaders in the automotive industry

5. Airplane industry increases and expands 1.Now used for both mail and passenger service - The first planes could hold up to 10 people

6. Electricity Expands 1.Factories used electricity to power machines (could have factories anywhere) 2.Electricity now in the suburbs and on farms 3.Electrical appliances (radio, washing machines, iron, vacuum cleaners now in homes - Gives house wives more leisure time = changes in people’s lifestyles = shopping centers grow = first malls

7. New methods of advertising emerge 1.Use of ad’s to sell (images) – p. 490 2.Brand names become widespread (Lucky, Listerine) 3.Radio’s reached huge audiences 4.Mass Media 5.Focus on consumers led to economic growth

8. A Consumer Economy Between 1914-1926 average wages increased 28% Number of millionaires doubled Consumer Economy = An economy that depends on a large amount of spending by consumers Increased spending = larger profits for business = increased wages which encourages even more spending

9. Americans traditionally valued thrift, but increased spending in the 20s was sparked by; higher wages clever advertisement new products lower costs widespread availability of credit