Chapter 7 sections 1-2 packets for vocab quiz

How did price sell cars?

Because of the rapid manufacturing of the model t, Ford kept dropping the sale price. In 1916, it was $350. By 1927, it was $290. The cars were slow, dull, and only available in black. It was the first car that ordinary people could afford. In 1919, only 10% of people owned a car. By 1927, 56% of people owned a car.

What was Coolidge Prosperity?

Calvin Coolidge became the president after the death of Warren G. Harding. He was known as Silent Cal for being quiet, honest, and frugal. He trusted business and put his administration in the hands of men who held to the simple virtues of an older America.

How did the suburbs grow?

Cars and mass transportation allowed the cities to expand outward, while urban workers moved to the suburbs. The western and southern cities developed after the car revolution. The suburbs grew much faster than inner cities and consisted of mostly middle and upper-class residents. While the inner cities were highly populated, the suburbs grew to be more populated

How did Silent Cal support big business?

Coolidge believed that the creation of wealth benefited the nation as a whole. He said "The business of America is business" He continued to follow the goals of the secretary of the treasury Andrew Mellon and the economy boomed. For almost 6 years, the economy soared.

What troubles brew beneath the surface?

Farmers were struggling. Labor unions demanded higher wages and better working conditions. African Americans faced discrimination, especially in the South with the Jim Crow laws, and Mexican americans were being paid low wages and were being forced to move back to Mexico

What happened with mass production?

Ford hired scientific management experts to improve his mass production technique. They improved efficiency and reduced time, effort, and expense. Ford put his cars on a moving assembly line and in 2 years, the assembly like techniques reduced the time it took to manufacture a model t from more than 12 hours to 90 minutes. This assembly line perfected mass production

How did domestic and foreign policy change direction under Harding and Coolidge?

Foreign policy changed with Harding by raising protective tariffs. Domestic policy changed because the Harding administration favored big business. Domestic policy remained much the same with Coolidge, supporting big business. Foreign policy changed with Coolidge by having a role in the world with the Washington Naval Disarmament Conference and the Dawes Plan.

What happened when the ohio gang cashes in?

Harding was likable and kind, but not very intelligent. He trusted others to make decisions. Most of those people were his close friends, known as the ohio gang. Unfortunately, they were greedy men who used the government to get what they wanted.

What did Harding to with the Harding Administration?

He raised protective tariffs, in which the tax on imports made it easier for American producers to sell goods at home. In retaliation, European nations also hiked tarrifs, making American goods harder to sell overseas. It reduced government regulation of business and the term Laissez-faire meaning hands off. The administration didn't abandon all social goals, because the secretary of commerce, Herbert Hoover, worked with business and labor leaders to achieve voluntary advancements. Hoover had great success at getting people to work together instead of battling one another.

What policies did Calvin Coolidge favor to support economic growth?

He supported the thought that the creation of wealth benefitted the nation and continued to follow the goals of Andrew Mellon, leading to an economic boom.

How did wages improve?

Henry Ford improved working conditions by doubling the wages of a large number of his workers from $2.35 to $5 a day in 1914, reduced their workday from 9 hours to 8 hours, and in 1926, became the first major industrialist to give his workers Saturday and Sunday off, setting up a 5 day workweek

What did Henry Ford do to drive prosperity?

Henry Ford introduced a series of method and ideas that revolutionized production, wages, working conditions and daily life. He increased mass production which was the rapid manufacture of large numbers of identical products, that was originally used for sewing machines. Henry Ford brought this to new heights.

What was the Dawes plan?

In 1924, its was formed, as an agreement that arranged US loans to Germany. Germany could then pay reparations, and then Britain and France could pay back their loans to the US. The entire scheme was financed by the US and the Stock Market crash would end all of the payments

How did the bull market make fortunes?

In the 1920s, the bull market occurred, which was a period of rising stock prices. More and more Americans put their money in stocks in an effort to get rich quick. They ignored the financial risk and the market soared. People began buying on margin, which meant they were buying stocks on credit. These stocks were investments in companies which the companies used to expand their company

What impact did the development of suburbs have on American society?

It allowed for cards and mass transportation to make cities expand outward. Urban workers could move to the suburbs and the western and southern cities could develop. The suburbs ended up growing much faster than inner cities and the suburbs became populated by middle and upper class residents. because of Henry Ford's automobile, transportation could occur and people could live in the suburbs.

How did buying on margin allow more people to invest in the stock market?

It allowed for people to invest in the stock market with credit, meaning that they would make a small payment and then pay the rest back later. They ignored the financial while the market soared to earn money quickly. It allowed people to invest before they had the full amount of money that they wanted to invest in the market.

What was the Teapot Dome Scandal?

It was a scandal that involved the secretary of state (who managed natural resources) Albert Fall. In 1921, Fall arranged to transfer oil reserves in Elk Hills, California to Teapot Dome Wyoming. The oil was moving from the Navy Department to the department of Interior, and Harding signed the transfer. Once Fall had control of the oil, he forgot about the needs of the Navy and leased the properties to private oilmen in return for "Loans" which were bribes. The senate began investigating and by 1924, the scandal was revealed to the public. The oil reserves were returned to the government and Fall was sentenced to a year in jail.

How did advertising build a consumer culture?

New advertising techniques made people think they needed somethings when they didn't. This was seen with magazine and newspaper ads. People began buying new products that they never knew they needed such as Kleenex and listerine

What was involved with the Harding Administration?

New policies favored big business, when Andrew Mellon, the secretary of the treasury, supported legislation that advanced business interests, meaning he proposed bills that favored the growth of businesses. He also disliked new income tax, favoring instead low taxes on individuals and corporations, meaning he tried to set a low tax, and he reduced government spending from $18 billion to $3 billion, meaning the government spends less with a budget being created.

What happens with Harding's death?

On his return voyage from Alaska, Harding suffered a heart attack and died on August 2, 1923. The public mourned until the found out about all of the scandals during his presidency.

What happened to the cities, suburbs and country?

People began to flock to the cities. Immigrants settled in cities, farmers left fields for the cities, and the Great Migration occurred. Cities change shape by the creation of skyscrapers beginning to dominate the skylines of the nation's cities. The cities began to develop into modern cities

How were war debts collected?

The US demanded that Britain and France repay their huge war debts. Germany had to pay reparation payments to Britain and France first. The financial issue was threatening the world economy, but Coolidge insisted the debt be paid. The result was the Dawes Plan

How did the automobile change america?

The boom in the auto industry stimulated growth in other industries related to car manufacture or use. Steel, glass, rubber, asphalt, wood, gasoline, insurance and road-construction industries all benefited. The federal government introduced highways in 1926, which caused small businesses to pop up. Job growth and better paying jobs contributed to prosperity.

What were the causes and effects of the Teapot Dome scandal?

The cause of the Teapot Dome scandal was Albert Fall leases the oil reserves to private oilmen in return for bribes. The effects were Fall being sentenced to a year in jail with a $100,000 fine. Also, the oil reserves were returned to the government.

How did the booming economy of the 1920s lead to changes in American life?

The middle class people became able to purchase items that were originally seen as a luxury item. The consumer revolution occurred, making life easier for women to do daily activities. New advertising techniques were seen and credit was able to be established, creating a consumer culture. The bull market occurred, allowing for people to become rich quick and buy on margin in the stock market. There was growth in the suburbs, and development of our cities. Mass production occurred in many businesses, allowing the middle class to develop. More goods were available to consumers to be purchased and more jobs were now available.

How did many Americans face hardships?

The wealthiest people reaped all of the rewards, while the wealth was poorly distributed. Industrial wages rose at a much slower rate than corporate salaries and the farm incomes declined. There was a huge gap between rich and poor and it widened. When the wheat prices dropped constantly, farmers earned less profit and couldn't make payments to keep their farm operating.

How did we a bustling economy formed?

There was a consumer revolution, where electricity started to be used for products such as washing machines, vacuum cleaners, irons, radios, and refrigerators, all of which were affordable and made life easier on women. It made daily life easier

What were automobiles?

They were originally only owned by wealthy people. They were seen as a form of class division. Henry Ford introduced his model t in 1908, where the first one sold for $850. He then opened a plant in Detroit along the Detroit river which had easy access to steel, glass, oil, and rubber that was manufactured in PA, OH, IN, and IL

What was credit?

Through installment buying, consumers could make small down payments and then pay off the rest of the debt in regular monthly payments. People were buying things they would have saved up for years to buy. It was a new way of purchasing products

What was America's role in the world?

We seeked an end to war. We wanted to avoid another arms race and tried to do this through the Washington Naval Disarmament Conference, which limited construction of large warships. It didn't end the World's largest naval problems but raised hope that nations could solve disagreements without resorting to war. We also tried using the Kellogg Briand Pact of 1928 that was made with secretary of state Frank B. Kellogg and French Foreign minister Aristide Briand. It was a treaty to outlaw war, and 62 nations ratified the pact.

How did the US support world peace efforts during the 1920s?

We supported world peace efforts by using the Washington Naval Disarmament Conference and the Dawes Plan. The WNDC limited the construction of large warships but that didn't end the worlds naval problems. the dawes allowed for Germany to make its reparations so Britain and France could repay their loans to the US.

How did Henry Ford increase the production and sale of automobiles?

with his invention of the Model T. When producing them, he uses his own technique of the assembly line, leading to mass production. This meant he was able to lower the prices due to the supply and made the automobile affordable to the common man.