12.3 The Business of America, 441.

1
12.3 The Business of America, 441.

• Learn about the impact of automobiles, electric
  power, advertising, installment buying on the
  American consumer.
• To understand how consumer goods became the
  foundation of the business boom of the 1920s.

2
Urban sprawl

• Automobile allows increased mobility cities
  spread in all directions.

3
Installment plan

• Buying goods over extended timea dollar down
  and a dollar forever.

4
Model T Ford

• 15,077,033, last one, rolled off assembly line,
  1927.
• December 2 new Model A.
• Came in Arabian sand and Niagara blue.
• Model T came only in black.

5
Automobile backbone of American economy
1910s 1970s.
6
Automobile

• Profoundly altered American landscape
• American society
• Only one of several factors in countrys business
  boom of 1920s.

7
Americas Standard of Living Soars

• Calvin Coolidge fit pro-business spirit 1920s
  well.
• The chief business of America is businessThe
  man who builds a factory builds a temple---the
  man who works there worships there.

8
Both Coolidge and his successor

• Herbert Hoover (Republican) favored government
  policies that would
• Keep taxes down
• Business profits up.
• Goal government interference in business
  minimum so private enterprise can flourish.

9
1920 - 1929

• Prosperous for Americans owned 40 worlds
  wealth, which changed way most Americans lived,
  worked, consumed.

10
Impact of Automobile

• Literally changed American landscape.
• Construction paved roads suitable for driving
  all weather.
• New houses came equipped with garage or carport
  and driveway.
• Smaller lawn
• Rapid construction gasoline stations, repair
  shops, public garages, motels, tourist camps,
  shopping centers.

11
First automatic traffic signal 1920s

• Detroit
• Holland Tunnel 1927 connected NYC and Jersey
  City.
• Woodbridge Cloverleaf first cloverleaf
  intersection NJ, 1928.

12
Liberated

• Rural families drive for shopping,
  entertainment.
• Families could vacation in faraway spots
• Urban sprawl people can live farther from jobs.

13
Automobile industry economic underpinning

• Akron, OH
• Detroit, Dearborn, Flint, Pontiac, MI
• Drew people to oil-producing states TX, CA
• Status symbol.
• 80 autos in US symbolized success free
  enterprise system.

14
Young airplane industry

• Began growth by carrying mail for government.
• First flight disaster useful peacetime means of
  transportation.
• Weather forecasting develops planes have radios,
  navigational instruments.
• Trimotor airplane by Ford 1926. 10 passengers
• 1927, Lockheed Co. produced single-engine
  planeVega, 6 passengers.

15
Electrical conveniences, 443.

• Gasoline powered much of economic boom of 1920s
  American factories used electricity to run
  machines.
• Alternating electrical current possible to
  distribute electric power by transformer.
• Electricity transmitted to outlying suburbs.
• Many farms without, but appliances common in
  cities radio, phonograph, washing machine,
  vacuum cleaner, sewing machine.

16
Increase

• Leisure activities for housewives
• More women working outside home.
• Lives easier.

17
Conformist life?

• Electrical appliances store-bought clothes,
  food, mass cultural activitiesmarathon dancing,
  miniature golf, movies, sports, newspapers.
• Sinclair Lewis famous 1922 novel Babbitttitle
  character described his fictional hometown to
  satirize conformity.

18
Dawn of Modern Advertising

• Psychologists hired to study how to appeal to
  buyers.
• Best colors? How best to take advantage of
  youth, beauty, health, wealth?
• Results impressivereach for a Lucky instead of a
  sweeteven your best friend wont tell yousay it
  with flowers.

19
Rotary, Kiwanis, Lions Clubs

• Community service organizations doing great
  things.
• Many Americans idolized business during this era.

20
Superficial Prosperity

• Growth going on forever?
• 50 production increase per factory worker
• National income - 58 billion to 83 billion
• Major corporations making fortunes stock market
  reaching new heights.

21
Businesses expanding in size

• Mergers of companies chain stores five-and-dime
  stores branch banking.
• Income gap between workers and managers.
• Iron and RR industries werent prosperous
• Mining, farming - losses

22
Buying Many Goods on credit

• Installment plan a dollar down and a dollar
  forever.
• Buy goods over extended period of time.
• Banks provided money at low interest rates.
• Advertisers pushed idea You furnish the girl,
  well furnish the home. Enjoy while you pay.

23
What could possibly go wrong with nations
economy?

• Technological and economic changes
• Life easier, more enjoyable.