Presidents Warren G. Harding, Calvin Coolidge, and Herbert Hoover favored pro-business policies: high tariffs (Fordney-McCumber Tariff, 1922), low taxes on the wealthy, and limited regulation of corporations. Coolidge famously said, “The business of America is business.”

Businesses encouraged Americans to buy goods on credit (installment plans). Advertisers used psychology to create desire for products like radios, refrigerators, and cosmetics. This new consumer culture emphasized convenience, status, and leisure.

Despite the boom, farmers struggled due to overproduction and falling prices. Old industries like textiles and railroads lagged. Income inequality grew, and many Americans faced debt. These weaknesses would contribute to the Great Depression. Worksheet: Chapter 20, Section 3 – The Business of America Name: _________________________ Date: ___________ Period: _______ Part 1: Key Terms (Match the term to its definition) | Term | Definition | |------|-------------| | 1. Assembly line | A. Buying goods by making small payments over time | | 2. Installment plan | B. Tax on imported goods to protect domestic industries | | 3. Fordney-McCumber Tariff | C. Mass production method that increased efficiency | | 4. Consumer culture | D. Society focused on buying goods for pleasure/status | | 5. Calvin Coolidge | E. President who said “The business of America is business” |