D. Housley
APUSH, Block 2
I
Chapter 22 Notes
The New Economy
a) Technology and Economic Growth
1921-1922 // after recession, tremendous economic growth in output + income
growth result of collapse of European industry after war important
technological advances
rise of auto manufacturing (gas production, road construction)
assembly line
rise of radio and commercial broadcasting
advances in air travel
development of electronics + synthetic materials
Maturation of electricity and telecommunication fields; work during 1920s
and 1930s on primitive computer technologies
b) Economic Organization
Certain industries continued toward national organization and consolidation -companies adopted new modern administrative systems with efficient division
structures to allow subsidiary control & easier expansion
In industries with more competition stabilization reached through cooperation
rise of trade association to coordinate production & marketing
Industrialists feared overproduced and recession efforts to curb competition
through either consolidation or cooperation reflected this
c) Labor in the New Era
1920s // some employers used welfare capitalism to give workers more
rights, improve safety, raise wages in order to avoid labor unrest, and
independent union growth.
System survived only if industry prospering collapsed 1929
Welfare capitalism helped only a few workers, employers wage increases
disproportional to their increase in profits
Workers still mainly impoverished and powerless
Families relied on multiple wage earners
Organized labor and independent unions often failed to adapt to the changing
nature of modern economy
American Federation of Labor still used craft union system based on
skills didnt allow growing unskilled industrial workers
d) Women and Minorities in the Work Force
Pres. Warren Harding elected in 1920 appointed party elite who had helped
him win nomination to positions in administration
Corrupt Ohio Gang committed fraud and corruption in Teapot dome
oil reserve scandal
Harding died of a heart attack in 1923 VP Calvin Coolidge ascended to
presidency
Coolidge passive president like Harding; believed government should not
interfere little in life of nation
b) Government and Business
Federal government as a whole worked to help businesses and industries
c)