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628 C
HAPTER 20
Terms & Names
Terms & Names
MAIN IDEA
MAIN IDEA
One American's Story
•Calvin Coolidge
•urban sprawl
•installment plan
Consumer goods fueled the
business boom of the 1920s
as America’s standard of
living soared.
Business, technological, and
social developments of the
1920s launched the era of
modern consumerism.
WHY IT MATTERS NOW
WHY IT MATTERS NOW
In 1927, the last Model T Ford—number 15,077,033—rolled off
the assembly line. On December 2, some 1 million New Yorkers
mobbed show rooms to view the new Model A. One striking dif-
ference between the two models was that customers could
order the Model A in such colors as “Arabian Sand” and
“Niagara Blue”; the old Model T had come only in black. A
Ford spokesman explained some additional advantages of the
new automobile.
A PERSONAL VOICE
“ Good-looking as that car is, its performance is better than its appearance. We
don’t brag about it, but it has done seventy-one miles an hour. It will ride along
a railroad track without bouncing. . . . It’s the smoothest thing you ever rode in.
”
—a Ford salesman quoted in Flappers, Bootleggers, “Typhoid Mary,” and the Bomb
The automobile became the backbone of the American economy in the 1920s
(and remained such until the 1970s). It profoundly altered the American landscape
and American society, but it was only one of several factors in the country’s busi-
ness boom of the 1920s.
American Industries Flourish
The new president, Calvin Coolidge, fit into the pro-business spirit of the 1920s
very well. It was he who said, “the chief business of the American people is busi-
ness. . . . The man who builds a factory builds a temple—the man who works
there worships there.” Both Coolidge and his Republican successor, Herbert
Hoover, favored government policies that would keep taxes down and business
profits up, and give businesses more available credit in order to expand. Their goal
was to keep government interference in business to a minimum and to allow pri-
vate enterprise to flourish. For most of the 1920s, this approach seemed to work.
Coolidge’s administration continued to place high tariffs on foreign imports,
▼
The Model A was
a more luxurious
car than the
Model T. It was
introduced at
$495. Model T’s
were selling for
$290.
Skillbuilder
Answers
1. Possible
Answers: With a
Southwestern
route, engineers
did not have to
build a road
across the
Rocky
Mountains.
Also, Route 66
would help open
up the sparsely
populated
Southwest to
the rest of the
country and
thus spur popu-
lation growth
and economic
development.
2. Cities along
the route grew
as traffic
brought more
business to the
area.
The Business
of America
p0628-633aspe-0620s3 10/17/02 9:01 AM Page 628
Page 1 of 6
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PACIFIC
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Chicago
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St. Louis
Springfield
Claremore
Tulsa
Galena
Springfield
Albuquerque
Santa
Rosa
Tucumcari
Amarillo
Barstow
Winslow
Holbrook
ILLINOIS
INDIANA
MISSOURI
IOWA
WISCONSIN
MINNESOTA
ARKANSAS
OHIO
MICHIGAN
KENTUCKY
TENNESSEE
WASHINGTON
MONTANA
NEBRASKA
KANSAS
COLORADO
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CALIFORNIA
ARIZONA
NEW MEXICO
TEXAS
OKLAHOMA
WYOMING
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0 100 200 kilometers
100 200 miles
which helped American manufacturers. Reducing income taxes meant that peo-
ple had more money in their pockets. Wages were rising because of new technol-
ogy and so was productivity.
THE IMPACT OF THE AUTOMOBILE
The automobile literally changed the
American landscape. Its most visible effect was the construction of paved roads
suitable for driving in all weather. One such road was the legendary Route 66,
which provided a route for people trekking west from Chicago to California.
Many, however, settled in towns along the route. In addition to the changing
landscape, architectural styles also changed, as new houses typically came
equipped with a garage or carport and a driveway—and a smaller lawn as a result.
The automobile also launched the rapid construction of gasoline stations, repair
shops, public garages, motels, tourist camps, and shopping centers. The first
automatic traffic signals began blinking in Detroit in the early 1920s. The
Holland Tunnel, the first underwater tunnel designed specifically for motor
vehicles, opened in 1927 to connect New York City and Jersey City, New
Jersey. The Woodbridge Cloverleaf, the first cloverleaf intersection, was built
in New Jersey in 1929.
The automobile liberated the isolated rural family, who could now travel to
the city for shopping and entertainment. It also gave families the opportunity to
vacation in new and faraway places. It allowed both women and young people to
become more independent through increased mobility. It allowed workers to live
Politics of the Roaring Twenties 629
Roadside stands offering food, drink, and other items
appeared in increasing numbers.
Routing of highway through
392 miles of Oklahoma
gave the state more miles,
more jobs, and more
income than other states
on Route 66.
The “Auto Camp”
developed as towns-
people roped off
spaces alongside
the road where
travelers could
sleep at night.
Route 66
GEOGRAPHY SKILLBUILDER
1.
Place What do you think were some of
the reasons government officials decided
to build Route 66 through the Southwest
rather than straight west from Chicago?
2.
Movement How do you think the
increase in traffic affected the cities
along this route?
Gas for cars
was cheap and
plentiful. Gas
stations sprung
up on Route 66
charging 25¢
per gallon.
▼
Commissioned on the cusp of the Depression, Route 66 symbol-
ized the road to opportunity. Also known as “the Mother Road,” it
became the subject of countless songs, films, books, and legends.
1916 Federal-Aid Road Act sets up highway program with the
federal government paying half the cost of states’ highway
construction.
1921 Highway construction in 11 western states begins under
administration of Bureau of Public Roads.
1926 U.S. Highway 66, which would run 2,448 miles from
Chicago to Los Angeles, California, is established.
Route 66 linked hundreds of rural
communities in Illinois, Missouri,
and Kansas to Chicago, enabling
farmers to transport produce.
A. Possible
Answers Roads
were paved, and
shopping cen-
ters and other
services for
cars were built;
people commut-
ed to work, and
urban sprawl
developed;
regional differ-
ences dimin-
ished.
MAIN IDEA
MAIN IDEA
A
Analyzing
Effects
What was
the impact of
the automobile?
A
p0628-633aspe-0620s3 10/17/02 9:01 AM Page 629
Page 2 of 6
miles from their jobs, resulting in urban sprawl as cities
spread in all directions. The automobile industry also pro-
vided an economic base for such cities as Akron in Ohio,
and Detroit, Dearborn, Flint, and Pontiac in Michigan. The
industry drew people to such oil-producing states as
California and Texas. The automobile even became a status
symbol—both for individual families and to the rest of the
world. In their work Middletown, the social scientists Robert
and Helen Lynd noted one woman’s comment: “I’ll go
without food before I’ll see us give up the car.”
The auto industry symbolized the success of the free
enterprise system and the Coolidge era. Nowhere else in the
world could people with little money own their own auto-
mobile. By the late 1920s, around 80 percent of all regis-
tered motor vehicles in the world were in the United
States—about one automobile for every five people. The
humorist Will Rogers remarked to Henry Ford, “It will take
a hundred years to tell whether you helped us or hurt us,
but you certainly didn’t leave us where you found us.”
THE YOUNG AIRPLANE INDUSTRY
Automobiles weren’t
the only form of transportation taking off. The airplane
industry began as a mail carrying service for the U.S. Post
Office. Although the first flight in 1918 was a disaster, a
number of successful flights soon established the airplane
as a peacetime means of transportation. With the develop-
ment of weather forecasting, planes began carrying radios
and navigational instruments. Henry Ford made a trimotor
airplane in 1926. Transatlantic flights by Charles Lindbergh
and Amelia Earhart helped to promote cargo and commer-
cial airlines. In 1927, the Lockheed Company produced a
single-engine plane, the Vega. It was one of the most popu-
lar transport airplanes of the late 1920s. Founded in 1927,
Pan American Airways inaugurated the first transatlantic
passenger flights.
630 C
HAPTER 20
B
K
E
Y
P
L
A
Y
E
R
K
E
Y
P
L
A
Y
E
R
Flight attendants train
for an early United
Airlines flight. When
commercial airline
flights began, all flight
attendants were female
and white.
▼
CALVIN COOLIDGE
1872–1933
Stepping into office in 1923, the
tightlipped Vermonter was respect-
ed for his solemnity and wisdom.
Coolidge supported American
business and favored what he
called “a constructive economy.”
Known for his strength of charac-
ter, Coolidge forced the resigna-
tion of Attorney General Daugherty
and other high officials who had
created scandal in office.
Shortly after Coolidge was elect-
ed, his son died of blood poison-
ing. Coolidge later wrote, “The
power and the glory of the presi-
dency went with him.” When he
decided not to seek reelection in
1928, Coolidge stumped the
nation. Keeping in character, he
said, “Goodby, I have had a very
enjoyable time in Washington.”
B. Possible
Answers It
encouraged
consumers to
consider many
more items
necessities
rather than luxu-
ries. The
Coolidge admin-
istration and big
business got
along very well
together.
Vocabulary
status symbol:
a possession
believed to
enhance the
owner’s social
standing
MAIN IDEA
MAIN IDEA
B
Analyzing
Effects
How did the
widespread use
of the automobile
affect the
environment and
the lives of
Americans?
p0628-633aspe-0620s3 10/17/02 9:01 AM Page 630
Page 3 of 6
C
Politics of the Roaring Twenties 631
America’s Standard of Living Soars
The years from 1920 to 1929 were prosperous ones for the United States.
Americans owned around 40 percent of the world’s wealth, and that wealth
changed the way most Americans lived. The average annual income rose more
than 35 percent during the period—from $522 to $705. People found it easy to
spend all that extra income and then some.
ELECTRICAL CONVENIENCES
Gasoline powered much of
the economic boom of the 1920s, but the use of electricity
also transformed the nation. American factories used elec-
tricity to run their machines. Also, the development of an
alternating electrical current made it possible to distribute
electric power efficiently over longer distances. Now elec-
tricity was no longer restricted to central cities but could be
transmitted to suburbs. The number of electrified house-
holds grew, although most farms still lacked power.
By the end of the 1920s, more and more homes had elec-
tric irons, while well-to-do families used electric refrigerators,
cooking ranges, and toasters. Eunice Fuller Barnard listed
prices for electrical appliances in a 1928 magazine article:
These electrical appliances made the lives of housewives easier, freed them for
other community and leisure activities, and coincided with a growing trend of
women working outside the home.
THE DAWN OF MODERN ADVERTISING
With new goods flooding the market,
advertising agencies no longer just informed the public about products and
prices. Now they hired psychologists to study how to appeal to people’s desire for
youthfulness, beauty, health, and wealth. Results were impressive. The slogan
“Say it with flowers” doubled florists’ business between 1912 and 1924. “Reach
for a Lucky instead of a sweet” lured weight-conscious Americans to cigarettes and
away from candy. Brand names became familiar from coast to coast, and luxury
items now seemed like necessities.
One of those “necessities” was mouthwash. A 1923 Listerine advertisement
aimed to convince readers that without Listerine a person ran the risk of having
halitosis—bad breath—and that the results could be a disaster.
A PERSONAL VOICE
“ She was a beautiful girl and talented too. She had the advantages of education
and better clothes than most girls of her set. She possessed that culture and
poise that travel brings. Yet in the one pursuit that stands foremost in the mind of
every girl and woman—marriage—she was a failure.
”
—Listerine Advertisement
Businesspeople applied the power of advertising to other areas of American
life. Across the land, they met for lunch with fellow members of such service
organizations as Rotary, Kiwanis, and the Lions. As one observer noted, they sang
C. Possible
Answers
Advantages:
People could
buy many goods
over a period of
time with little
money down at
low interest.
Disadvantages:
People easily
went too far into
debt without
really thinking
about it.
MAIN IDEA
MAIN IDEA
C
Forming
Generalizations
How did the
use of electricity
affect Americans’
lifestyle?
Goods and Prices, 1900 and 1928
1900 1928
wringer and washboard $ 5
brushes and brooms $ 5
sewing machine (mechanical) $25
washing machine $150
vacuum cleaner $ 50
sewing machine (electric) $ 60
▼
American consumers
in the 1920s could
purchase the latest
household electrical
appliances, such as a
refrigerator, for as
little as a dollar down
and a dollar a week.
p0628-633aspe-0620s3 10/17/02 9:01 AM Page 631
Page 4 of 6
632 C
HAPTER 20
songs, raised money for charities, and boosted the image of
the businessman “as a builder, a doer of great things, yes,
and a dreamer whose imagination was ever seeking out new
ways of serving humanity.” Many Americans idolized busi-
ness during these prosperous times.
A Superficial Prosperity
During the 1920s, most Americans believed prosperity
would go on forever—the average factory worker was pro-
ducing 50 percent more at the end of the decade than at its
start. Hadn’t national income grown from $64 billion in
1921 to $87 billion in 1929? Weren’t most major corpora-
tions making fortunes? Wasn’t the stock market reaching
new heights?
PRODUCING GREAT QUANTITIES OF GOODS
As pro-
ductivity increased, businesses expanded. There were
numerous mergers of companies that manufactured auto-
mobiles, steel, and electrical equipment, as well as mergers
of companies that provided public utilities. Chain stores
sprouted, selling groceries, drugs, shoes, and clothes. Five-
and-dime stores like Woolworth’s also spread rapidly.
Congress passed a law that allowed national banks to
branch within cities of their main office. But as the number
of businesses grew, so did the income gap between workers
and managers. There were a number of other clouds in the
blue sky of prosperity. The iron and railroad industries,
among others, weren’t very prosperous, and farms nation-
wide suffered losses—with new machinery, they were producing more food than
was needed and this drove down food prices.
BUYING GOODS ON CREDIT
In addition to advertising, industry provided
another solution to the problem of luring consumers to purchase the mountain
of goods produced each year: easy credit, or “a dollar down and a dollar forever.”
The installment plan, as it was then called, enabled people to buy goods over
ANOTHER
P
E
R
S
P
E
C
T
I
V
E
P
E
R
S
P
E
C
T
I
V
E
THE NEEDY
While income rose for many
Americans in the 1920s, it did
not rise for everyone. Industries
such as textile and steel manu-
facturing made very little profit.
Mining and farming actually suf-
fered losses. Farmers were
deeply in debt because they had
borrowed money to buy land and
machinery so that they could pro-
duce more crops during World
War I. When European agriculture
bounced back after the war, the
demand for U.S. crops fell, as did
prices. Before long there were
U.S. farm surpluses.
Many American farmers could
not make their loan and mort-
gage payments. They lost their
purchasing power, their equip-
ment, and their farms. As one
South Dakota state senator
remarked, “There’s a saying:
‘Depressions are farm led and
farm fed.’”
Analyzing
Analyzing
Background
See productivity
on page R44 in
the Economics
Handbook.
“YES, SIR, HE’S MY BABY”
This cartoon depicts Calvin Coolidge playing a saxophone
labeled “Praise” while a woman representing “Big Business”
dances up a storm.
SKILLBUILDER
Analyzing Political Cartoons
1.
The dancing woman is a 1920s “flapper”—independent,
confident, and assertive. In what ways was big business
in the 1920s comparable to the flappers?
2.
What do you think the cartoonist suggests about
Coolidge’s relationship with big business?
SEE SKILLBUILDER HANDBOOK, PAGE R24.
p0628-633aspe-0620s3 10/17/02 9:01 AM Page 632
Page 5 of 6
E
D
MAIN IDEA
2. TAKING NOTES
Re-create the web below on your
paper and fill it in with events that
illustrate the central idea.
Choose one event from the web and
explain its significance in the 1920s.
CRITICAL THINKING
3. EVALUATING
Do you agree with President
Coolidge’s statement “The man
who builds a factory builds a
temple—the man who works there
worships there”? Explain your
answer. Think About:
• the goals of business and
of religion
• the American idolization of
business
• the difference between workers
and management
4. INTERPRETING GRAPHS
What trend does the graph show
between 1920 and 1930? What
were some of the reasons for this
trend?
Politics of the Roaring Twenties 633
an extended period, without having to put down much money at the time of pur-
chase. Banks provided the money at low interest rates. Advertisers pushed the
“installment plan” idea with such slogans as “You furnish the girl, we’ll furnish
the home” and “Enjoy while you pay.”
Some economists and business owners worried that installment buying might
be getting out of hand and that it was really a sign of fundamental weaknesses of
a superficial economic prosperity. One business owner even wrote to President
Coolidge and related a conversation he had overheard on a train.
A PERSONAL VOICE
“Have you an automobile yet?”
“No, I talked it over with John and he felt we could not afford one.”
“Mr. Budge who lives in your town has one and they are not as well off as you are.”
“Yes, I know. Their second installment came due, and they had no money to pay it.”
“What did they do? Lose the car?”
“No, they got the money and paid the installment.”
“How did they get the money?”
“They sold the cook-stove.”
“How could they get along without a cook-stove?”
“They didn’t. They bought another on the installment plan.”
—a business owner quoted In the Time of Silent Cal
Still, most Americans focused their attention on the present, with little con-
cern for the future. What could possibly go wrong with the nation’s economy?
The decade of the 1920s had brought about many technological and economic
changes. And yet the Coolidge era was built on paradox—the president stood for
economy and a frugal way of life, but he was favored by a public who had thrown
all care to the wind. Life definitely seemed easier and more enjoyable for hun-
dreds of thousands of Americans. From the look of things, there was little warn-
ing of what was to come.
•Calvin Coolidge •urban sprawl •installment plan
1. TERMS & NAMES For each term or name, write a sentence explaining its
significance.
Technology &
Business Changes
of the 1920s
Automobile Registration
1910–1930
Registration (millions)
25
20
15
10
5
1910 1915 1920 1925 1930
Source: Historical Statistics of the United States.
MAIN IDEA
MAIN IDEA
D
Analyzing
Issues
What were the
main advantage
and disadvantage
of buying on
credit?
D. Answer
Advantage:
People could
buy goods they
could not other-
wise afford.
Disadvantage:
People could
go far into
debt without
realizing it.
E. Possible
Answer
The economy
may falter when
consumers are
unable to meet
their credit obli-
gations.
MAIN IDEA
MAIN IDEA
E
Predicting
Effects
How do you
think the changes
in spending will
affect the
economy?
p0628-633aspe-0620s3 10/17/02 9:01 AM Page 633
Page 6 of 6
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