Great Depression

When the Twenties rolled around, Americans found themselves engulfed in bolstering economy. In the 1920's business was an obsession. Economic expansion created booming business profits which in turn raised the standard of living for most Americans. Large businesses were expanding. In 1920, for example, Woolworth had 1,111 stores. In 1929 they expanded to 1,825. J.C. Penney expanded from 312 stores to 1,395, (Time-Life 102). Small business entrepreneurs took advantage of the good times as they began popping up all over the United States. Americans were moving into a period of economic prosperity. Even industrial workers, whose strikes for higher pay had availed them little in previous decades, benefited. From 1922-1929, the national income was up 40% from $60.7 billion to $87.2 billion, (Cronon 341). The use of labor saving machinery in factories and on farms enabled workers to produce more goods faster and less expensively. This led to higher amounts of production. At some points, the American consumer could not buy the goods as fast as they were produced. Since the economy was in such good shape, many Americans could afford to purchase refrigerators, washing machines, and radios. Low-income families could afford to buy an inexpensive Model T, which Henry Ford developed in 1908. The number of passenger cars in the United States jumped from fewer then 7 million in 1919 to about 23 million in 1929. Traffic jammed the nations highways and created still another need for businesses, roadside restaurants, tire manufacturers and gas stations. Standard Oil gas stations grew from 12 in 1920 to 1,000 by 1929, (Time-Life 102). With all the expansion, and the economy doing well, business became the foundation of society. Calvin Coolidge epitomized the time when he was quoted saying, "The business of America is business,". The Stock Market became a very important aspect of the economy in the 1920's. As the economy was flourishing, many Americans found it a practical investment to put money into the Stock Exchange, as the return could be quite large.