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Business Significance in the 1920s: Economic Expansion and Industrial Transformation

Discover the rapid expansion of businesses in the 1920s, fueled by stock options, consumerism, and innovative advertising techniques. Explore the impact of major markets like automobiles and entertainment, and government support through high tariffs and tax loopholes.

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Business Significance in the 1920s: Economic Expansion and Industrial Transformation

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  1. Business in the 20’s

  2. I. Significance of Business in 20s • Rapidly expanding during 20s • Stock options • provide consumers with the opportunity to own a part (or a share) of the company • Created a consumer society • Changed advertising techniques • Installment plan – sell more products – quickly (credit) • Fueled economy with production and sales • Created jobs • Corporate mergers created powerhouse companies

  3. II. Govt. Support for Business • High Tarrifs • Fordney McCumber Act • Placed taxes of foreign goods • Andrew Mellon – Secretary of Treasury (1921 – 1930) • Passed and provided tax loopholes for business

  4. III. Major Markets in the 20s • Automobiles • Appliances • GE • Maytag • Entertainment • Film • Music (Jazz)

  5. IV. Automobiles • Embraced the Assembly Line • Made automobiles more affordable • Increased sales • Change in American Landscape • Urban Sprawl • Almost 1 car per family by the end of the decade • Major Companies • Ford • Chrysler • General Motors

  6. V. Hollywood • Developed as an industry due to: • Demand for entertainment • Increase in film technology • Speaking films • First was The Jazz Singer, 1927 • Developing 800 films a year (compared to 500 a year today)

  7. VI. Hollywood Studios • Studios created in 20s to make production efficient – combine services • Big 5 (major studios) • Fox Film Corp. • MGM • RKO • Paramount • Warner Brothers

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