The Business of America Under Coolidge How Does

The Business of America Under Coolidge How Does Coolidge’s Conservative Policies create Economic Growth During the 1920 s?

Business flourished under Coolidge • • 1. 2. 3. • Coolidge easily wins 1924 “re-election” Coolidge was pro-business & believes in Laissez Faire economics (keep govt out of business) Low taxes, easy credit so Americans spend $ Keeps tariffs high on foreign imports Investment in stock market Result: Economic boom, w/ companies making record profits, increasing productivity, and paying workers higher wages

The Automobile Spurs Growth • Paved roads and highways are built, best known is Route 66 connecting Chicago to LA • Road improvements incl: first traffic lights, cloverfield traffic pattern & first underwater tunnel (Holland Tunnel connects NJ & NY) • More cars creates urban sprawl: cities grow “out” as workers able to drive to work faster

Rise of Consumerism • Average annual income rises 35%, people begin buying more • More electricity in homes = more electrical appliances • Installment plans available to pay for expensive items “enjoy now…pay later” (but pay with interest) • More consumerism creates modern advertising Vacuum Electric Iron Refrigerator Washing Machine

Superficial Prosperity • Signs of problems to come were ignored by Coolidge Admin: 1. Growing income gap between workers & management 2. RR & farming industries declined 3. Too many people going into debt due to installment plans 4. Overvalued homes & land 5. Too many people gambling on stock market