Calvin Coolidge 1925 This time and place naturally

Calvin Coolidge (1925) “This time and place naturally suggest some consideration of commerce in its relation to government and society. We are finishing a year which can justly be said to surpass all others in the overwhelming success of general business…. While I have spoken of what I believed would be the advantages of a more sympathetic understanding, I should put an even stronger emphasis on the desirability of the largest possible independence between government and business. Each ought to be sovereign in its own sphere. When government comes unduly under the influence of business, the tendency is to develop an administration which closes the door of opportunity” - Calvin Coolidge, 1925, speech before the New York Chamber of Commerce

I. Automobiles change Business and Society Henry Ford

Automobiles change Business and Society

Automobiles change Business and Society

I. Automobiles change Business and Society n Car sales soar by 1920 s n People make more money & buy on credit n Assembly-line production lowers price by 60% § n n Frederick W. Taylor – scientific management Autos spur growth of other industries n Rubber, plate glass, service stations, and gasoline Change society and culture n Traffic jams, parking problems n Accident death rates rise sharply n Changes family life—people get away from home more often; youth culture changes n Suburban sprawl § people commute to work

II. Consumer Society n n Appliances, department stores, supermarkets, etc. n buy goods on credit Advertising industry boomed n Bruce Barton n Messages of progress, convenience, success, leisure, style, etc. § n mass communication & entertainment through magazines, radio, movies, etc. “Welfare Capitalism” – companies allowed workers to buy stock and receive benefits (medical, pensions, etc. ) n unions lost power

Consumer Society

III. Agricultural Crisis n After WWI, demand prices drop while production remains high n n Can’t pay loans and mortgages Mc. Nary-Haugen Bill (1924, 1928) – bill provides for gov’t purchase of surplus crops at fixed price to sell abroad n Twice vetoed by Coolidge

IV. Republican Economics n n n “Return to Normalcy” Supply-side economics (Sec. Andrew Mellon) – emphasized tax cuts so more money would be spent and invested “Business of America is business” – Coolidge n n n (Quasi) Laissez Faire Fordney-Mc. Cumber Tariff Law – high tariffs return Teapot Dome Oil Scandal

Teapot Dome Scandal