A Booming Economy 20.1
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1 A Booming Economy 20.1
2 How did the booming economy of the 1920s lead to changes in American life? During the 1920s, the American economy experienced tremendous growth. Using mass production techniques, workers produced more goods in less time than ever before. The boom changed how Americans lived and helped create the modern consumer economy.
3 The 1920s were a time of rapid economic growth in the United States. Much of this boom can be traced to the automobile.
4 The Automobile Drives Prosperity The Post-WWI recession ended quickly. Stock Prices rose quicklyfactories were producing more goods. Wages were on the risepeople bought more items Henry Ford introduced methods and ideas that changed production, wages, and working conditions, and daily life.
5 Ford made the Model T affordable by applying mass production techniques to making cars. A moving assembly line brought cars to workers, who each added one part. Ford consulted scientific management experts to make his manufacturing process more efficient. The time to assemble a Model T dropped from 12 hours to just 90 minutes.
6 Ford Pioneers Mass Production Ford did not originate mass production, he did however bring it to new heights. Ford made the automobile affordable for everyone. The Model T(1908) was a reliable car that sold for $850 Opened factory in Detroit, and used the assembly line to shorten the production time. (12 hrs to 90mins) eventually cost dropped to $290 by 1927.
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8 Ford also doubled the wages of his workers. Reduced the workday from 9 to 8 hours. In 1926, he became the first to give his workers the weekends off. The Model T & the 5-dollar, 40hour workday made Ford one of the shapers of the modern world.
9 How the Automobile Changed America Road construction boomed, and new businesses opened along the routes. Other car-related industries included steel, glass, rubber, asphalt, gasoline, and insurance. Oil discoveries brought people to the southwest (Ca, Tx, Ok,) Millions of cars on the road led to service stations, diners, and motor hotels (motels). Workers could live farther away from their jobs. Families used cars for leisure trips and vacations. Fewer people traveled on trolleys or trains.
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11 The federal government began a numbering system for all highways in Other forms of transportation suffered (trolleys & RR) Cars brought a sense of autonomy to Americans. Ownership was a symbol of the American Dream.
12 Suburbs were created as people were able to drive to work and live further away from their jobs. Los Angeles was one of the first cities to be affected by the automobile. A series of suburbs in search for a city
13 A Bustling Economy The 20s saw a consumer revolution, in which a flood of new, affordable goods became available. Electric washing machines, vacuum cleaners, and irons made housekeeping easier and less time consuming. Radios and refrigerators.
14 Advertising and Credit Build Consumer Culture Magazines and newspaper ads focused on desires and fears of Americans. Advertisers celebrated consumption. Americans soon were buying products years prior would have never thought about. (vacuum) Video
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17 -Installment plans became a way for everyone to afford the new products. -People now were buying products that otherwise they could not afford.
18 The 1920s saw a consumer revolution. Using installment buying, people could buy more. New products flooded the market. Advertising created demand.
19 A Bull Market Bull market- a period of raising stock prices. Americans began to invest heavily into the stock market, hoping to make quick money.
20 Buying on Margin- a form of buying on creditrisky investment practice. A buyer paid as little as 10% of the stock upfront. Then the buyer would pay the rest in installments over a period of months. The stock served as collateral. Buyers gambled the stock would be worth and thus sell the stock and make money.
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22 Cities, Suburbs, and Country In the 1920 s the urban and suburban life prospered, however, the rural sections of the county still felt many hardships. Immigrants, farmers, and African Americans all migrated to the cities. Steel changed the way the cities looked. Skyscrapers soon cluttered the skyline. NY s Empire State Building- 1931
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26 Cities expanded outward, thanks to automobiles and mass transit systems. More and more people who worked in cities moved to the suburbs. Suburbs grew faster than inner cities.
27 America s wealth during the 20s was poorly distributed. Farm income declined during the decade. Farmers suffered from growing debt and falling farm prices.
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