The Business of America
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| What was the backbone of the American economy in the 1920s? | The automobile
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| What were the views of Calvin Coolidge and his succesor Herbert Hoover? | The twenties were a time when businesses should be able to prosper, the presidents kept out of businesses, kept taxes low, and Coolidge kept tariffs high. Business was booming.
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| What were the major impacts of the automobile? | Created paved roads, towns along these roads, gas stations and repair shops, ways for rural residents to get to the city, garages, driveways, urban sprawl:cities spread in all directions
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| How did the automobile symbolize free enterprise? | there was one car for every 5 people in the US, even poor people could afford cars, the US was home to 80% of all automobiles in the world
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| How did the airplane industry begin? | As a mail carrying service, then a way of travel. Amelia Earhart and Charles Lindbergh inspired transatlantic cargo and passenger voyages that soon became regular
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| What happened to the American standard of living during the 1920s? | It soared, people had lots of time and money to spend
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| What was a popularized invention that freed up a lot of time for people? | Electricity could cook, clean, and sew allowing for more time for leisure activities
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| What did marketers begin using in theis advertising? | Psychology, they made luxury items seem like necessities
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| What were women beggining to do in the 1920s thanks to technological advances? | Get out of the house, acquire real jobs outside of the home.
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| What were the bad effects of overproduction of goods? | Farmers grew too many goods, pushing food prices down, the income gap between workers and managers grew, iron and railroad industries fell together thanks to automobiles.
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| Installment plans called for people to pay nothing when they bought certain things, but pay large sums later. What was the downfall? | People could be in debt and still "purchase" goods. Then they would fail to pay installments and get into real trouble
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| What is a defining term for the feelgood 1920s? | False Prosperity. Everything seemed really good, and like it would stay that way for ever, people were in for a surprise.
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