Business in the 20’s

I. Significance of Business in 20s

A. Rapidly expanding during 20sB. Stock options

• provide consumers with the opportunity to own a part (or a share) of the company

C. Created a consumer societyD. Changed advertising techniquesE. Installment plan – sell more products –

quickly (credit)F. Fueled economy with production and

salesG. Created jobsH. Corporate mergers created

powerhouse companies

II. Govt. Support for Business

A. High Tarrifs1. Fordney McCumber Act

Placed taxes of foreign goods

B. Andrew Mellon – Secretary of Treasury (1921 – 1930)1. Passed and provided tax loopholes

for business

III. Major Markets in the 20s

A.AutomobilesB.Appliances

1.GE2.Maytag

C.Entertainment1.Film2.Music (Jazz)

IV. AutomobilesA. Embraced the Assembly Line

1. Made automobiles more affordable2. Increased sales

B. Change in American Landscape1. Urban Sprawl

C. Almost 1 car per family by the end of the decade

D. Major Companies1. Ford 2. Chrysler3. General Motors

V. HollywoodA. Developed as an industry due to:

1. Demand for entertainment2. Increase in film technology3. Speaking films

First was The Jazz Singer, 1927

B. Developing 800 films a year (compared to 500 a year today)

VI. Hollywood Studios

A.Studios created in 20s to make production efficient – combine services

B.Big 5 (major studios)1. Fox Film Corp.2. MGM3. RKO4. Paramount5. Warner Brothers