The Business of America

1
The Business of America

• Main Idea The prosperous 20s led to a rise in
  the American standard of living.
• The US owned 40 of the worlds wealth
• Many Americans got used to excess during the
  1920s.

2
American business changes American society

• Presidents Coolidge and Hoover promote business
  the business of America is business.
• 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 Fords success was due to vertical
  consolidation he controlled the businesses that
  made up the phases of the products 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

• Now used for both mail and passenger service
• - The first planes could hold up to 10 people

6
Electricity Expands

• Factories used electricity to power machines
  (could have factories anywhere)
• Electricity now in the suburbs and on farms
• Electrical appliances (radio, washing machines,
  iron, vacuum cleaners now in homes
• - Gives house wives more leisure time changes
  in peoples lifestyles shopping centers grow
  first malls

7
New methods of advertising emerge

1. Use of ads to sell (images) p. 490
2. Brand names become widespread (Lucky, Listerine)
3. Radios 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