production. At some points, theAmerican consumer could not buy the goods as fast as they were produced. Since theeconomy was in such good shape, many Americans could afford to purchaserefrigerators, washing machines, and radios. Low income families could afford to buy aninexpensive Model T, which Henry Ford developed in 1908. The number of passengercars in the United States jumped from fewer then 7 million in 1919 to about 23 million in1929, (Cronon 341). Traffic jammed the nations highways and created still anotherneed 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). Withall the expansion, and the economy doing well, business became the foundation ofsociety. Calvin Coolidge epitomized the time when he was quoted saying, "The businessof America is business," (Cronon 342).The Stock-Market became a very important aspect of the economy in the 1920's. Asthe economy was flourishing, many Americans found it a practical investment to put money into the Stock Exchange as the return could be quite large. John J. Rascob, thevice-president of General Motors Corporation during the Twenties, declared thatanyone that put $15 dollars a month in the stock-market could make $80,000 dollars intwenty years. It was such promises of these that convinced many Americans to buystocks. Stock prices rose gradually in the early 20's, but skyrocketed in 1927, and1928. Average stock prices tripled from 1925 to 1929. The high profits seemed toconfirm President Hoover's pledge of a new era of abundance, during which "poverty willbe banished from this nation," (Cronon 341). The nations illusion of unending prosperitywas shattered on October 24, 1929. Worried investors who bought stock on creditbegan to sell. This led to the development of a panic amongst investors. The panic onlyworsened things and on October 24, 1929, stockholders sold a record 16,410,030shares...
