1920s: Business Boom February 22, 2016.  Life before 1920…  No malls  No fast food  No highways  Few cars  No advertisements  Life before 1920…

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Presentation transcript:

1920s: Business Boom February 22, 2016

 Life before 1920…  No malls  No fast food  No highways  Few cars  No advertisements  Life before 1920…  No malls  No fast food  No highways  Few cars  No advertisements  Life after 1920…  1st shopping center  1st fast food  A & W Root Beer  Advertisements start  FORD begins building an automobile empire  Life after 1920…  1st shopping center  1st fast food  A & W Root Beer  Advertisements start  FORD begins building an automobile empire WWI boosted U.S. economy : wages rose 28% Number of millionaires in U.S. doubled MAIN CAUSE OF GROWTH: Consumer SPENDING Depends on large amount of BUYING by consumers BUYING MEANS THAT FACTORIES STAY OPEN = JOBS

Credit  Americans USED to pay with CASH for everything  But now you can buy on CREDIT  Installment plan: make payments for period of time until debt paid  Pay interest  Buy things otherwise wouldn’t  People buy cars, washing machines, furniture, vacuum cleaners, sewing machines, radios, refrigerators, toasters, stoves, etc. on CREDIT  Cities have electricity  Country does NOT (too much $$$ to run lines)  Farms use wind power to generate electricity  Americans USED to pay with CASH for everything  But now you can buy on CREDIT  Installment plan: make payments for period of time until debt paid  Pay interest  Buy things otherwise wouldn’t  People buy cars, washing machines, furniture, vacuum cleaners, sewing machines, radios, refrigerators, toasters, stoves, etc. on CREDIT  Cities have electricity  Country does NOT (too much $$$ to run lines)  Farms use wind power to generate electricity

Henry Ford & the Model T February 24, 2016

Henry Ford  1900s: Only wealthy could afford cars  GOAL: Sell cars that ORDINARY people can afford  Achieved through MASS PRODUCTION  Rapidly making large numbers of identical products (typewriters, sewing machine, etc.)  Achieved by : ASSEMBLY LINE  1908: Model T  Sells for $850  Average American could afford car  Put cars on moving assembly lines (gets idea from meat packing industry)  Time to build car from 12 hrs to 90 min  1900s: Only wealthy could afford cars  GOAL: Sell cars that ORDINARY people can afford  Achieved through MASS PRODUCTION  Rapidly making large numbers of identical products (typewriters, sewing machine, etc.)  Achieved by : ASSEMBLY LINE  1908: Model T  Sells for $850  Average American could afford car  Put cars on moving assembly lines (gets idea from meat packing industry)  Time to build car from 12 hrs to 90 min

 More cars made - Cost of Model Ts goes DOWN  $350 – 1916  $290 – 1927  Model Ts available only in BLACK  1919 – 10% American people own Model T  1927 – 56% own Model T  Ford pays workers $5/ day (average $2/ day)  8 hour workdays (avg. 9 hours)  1926: Saturdays and Sundays off (weekend)  RATIONALE: workers who have MONEY & TIME will buy CAR  ASSEMBLY LINE: Each worker does ONE specialized task to produce final product  Assembly line moves while worker stays in place  GOOD: don’t need to know hundreds of tasks to create product from start to finish  More cars made - Cost of Model Ts goes DOWN  $350 – 1916  $290 – 1927  Model Ts available only in BLACK  1919 – 10% American people own Model T  1927 – 56% own Model T  Ford pays workers $5/ day (average $2/ day)  8 hour workdays (avg. 9 hours)  1926: Saturdays and Sundays off (weekend)  RATIONALE: workers who have MONEY & TIME will buy CAR  ASSEMBLY LINE: Each worker does ONE specialized task to produce final product  Assembly line moves while worker stays in place  GOOD: don’t need to know hundreds of tasks to create product from start to finish

Henry Ford Continued February 25, 2016

FORD MOTOR CO. VERTICAL CONSOLIDATION IRON MINES COAL MINES TOOLS - MADE OWN RAILROAD: SHIP PRODUCTS GLASS RUBBER - PLANTATIONS IN BRAZIL WOOD - ACRES OF FOREST STEEL MILLS FORD OWNS ALL

Henry Ford - Complex Businessman  GOOD  $5-a-day pay rate (double average pay)  Produce car America can afford  BAD  Used violence to fight unions  Assembly line boring  Did NOT keep up to changing tastes (color)  Did NOT understand HISTORY  Sailed to Europe to try to talk out of WWI  1920: used own newspaper to blame Jews for world’s problems  1927: was sued & apologized  GOOD  $5-a-day pay rate (double average pay)  Produce car America can afford  BAD  Used violence to fight unions  Assembly line boring  Did NOT keep up to changing tastes (color)  Did NOT understand HISTORY  Sailed to Europe to try to talk out of WWI  1920: used own newspaper to blame Jews for world’s problems  1927: was sued & apologized

 1920s - car making single biggest manufacturing industry  Auto industry used:  15% steel  80% rubber  50% glass  65% leather  7 billion gallons of gas  Business Increased: dealerships, motels, auto garages, campgrounds, gas stations, restaurants, truck lines (transport goods), road/ bridge construction  1920s - car making single biggest manufacturing industry  Auto industry used:  15% steel  80% rubber  50% glass  65% leather  7 billion gallons of gas  Business Increased: dealerships, motels, auto garages, campgrounds, gas stations, restaurants, truck lines (transport goods), road/ bridge construction

Society in the 1920s February 4, 2015

F Increased incomes… F People change F Flapper: new type of woman F Young, rebellious, fun, loving & bold F Women of 1920s F Shorter dresses F Short bobbed hair F Hats F Makeup F Smoke cigarettes F Drink in public F Increased incomes… F People change F Flapper: new type of woman F Young, rebellious, fun, loving & bold F Women of 1920s F Shorter dresses F Short bobbed hair F Hats F Makeup F Smoke cigarettes F Drink in public

Women Working & Voting F Office, sales, & service F MOSTLY only single women could get jobs F Quit once get married F Married women…quit when pregnant F Seldom training for higher positions F Men & Women different pay scales F No women Doctors or Lawyers F women can vote F Seldom do F Voted with husband F Office, sales, & service F MOSTLY only single women could get jobs F Quit once get married F Married women…quit when pregnant F Seldom training for higher positions F Men & Women different pay scales F No women Doctors or Lawyers F women can vote F Seldom do F Voted with husband

CHANGES IN THE 1920S FEBRUARY 12, 2015

Cities & Suburbs Demographic changes in U.S. Demographic: Statistics that describe population (data on race, income, education, etc.) Migration in 1920s 1.Country to City 1.Why? _______________________ 2.Education Higher 1.Why? _______________________ 3.People wealthier? 1.Why? ________________________ With TRANSPORTATION now available People move to SUBURBS Outskirts of the cities U.S. Population NYC4,766,8835,620,0486,930,446 Chicago2,185,2832,701,7053,376,478 St. Louis687,029772,897821,960 LA319,198576,6731,238,048 Detroit465,766993,0781,568,662

U.S. President in 1920 – Warren G. Harding Harding succeeded ___________________ Andrew Mellon named the Secretary of the Treasury 1. Favored BUSINESS Laissez-faire approach Laissez-faire: hands off 2. Low TAXES for everyone 3. Cut SPENDING by gov’t $18 million to $3 million Mellon raised TARIFFS by 25% Tariff: Tax on foreign good PROMOTES AMERICANS to buy ___________________, But… Europe RETALIATES and increase their tariffs RESULT: Europe no buy American (U.S. lose $$$) 1923: Harding suffers a heart attack…Calvin Coolidge is VP Coolidge becomes new President…Nickname “Silent Cal”

Farmers suffer Price of goods goes DOWN – Why??? More competition means you sell at lower price Lower price means you’re not earning as much Can’t pay bills for land, equipment, etc. African Americans face segregation in SOUTH Jim Crow laws separate races Labor unions want higher wages/ better working conditions But, “Silent Cal” stays quiet Laissez-faire Gov’t stay out of business

1920s: America’s Role in the World February 23, 2015

America’s Role in the World 1.No more War Washington Naval Disarmament Conference: limit construction of war ships (reduce militarism) Militarism: Building up military Militarism was a HUGE FACTOR in WWI 2.Kellogg-Briand Pact Agreement between Sec. of State Kellogg &French minister Briand to “outlaw” war 62 other countries signed In reality – pact is unenforceable 3.Collecting war debt France and England owe the U.S. a lot of $$$ from WWI Economy in France and England – BAD In order for France & England to repay U.S. – They need $$ owed from ___________________. Germany had NO $$$$ = U.S. does not get paid 1924: Dawes Plan – U.S. loans money to Germany (so they can repay England and France to pay back the U.S.) Dawes Plan ends in 1929 (Great Depression)

CULTURE IN 1920S FEBRUARY 25, 2015

1920s: For the first time – More Americans live in Urban U.S. Religion Fundamentalism: Belief that every word in the Bible is TRUE Believe that every problem can be solved by the Bible Most fundamentalists were found in RURAL America 1925: Scopes Trial ISSUE: Theory of Evolution (Charles Darwin) – species evolved over time CLASHES with Theory of Creation in the Bible 1925: Tennessee pass law that public schools CANNOT teach EVOLUTION THEORY Urban Museums/ Parks/ Plays More stores (more goods) Open to change (modern beliefs) Education is VERY important Rural No museums/ plays No stores (no buy) Traditional beliefs/ NO CHANGE Education NOT that important (reading, writing, and math all that matter)

John Scopes (high school biology teacher in TN) teaches evolution Arrested Clarence Darrow (Defense lawyer) William Jennings Bryan (expert for Prosecution) Bryan claims the Bible is RIGHT and science is WRONG Scopes found guilty and fined $100 Restricting Immigration Nativists: Argue that immigrants take away jobs from Native-Born (people born in U.S.) 1882: Chinese immigrants restricted 1914: Immigrants must know how to read & write their own language Wilson veto/ Congress override veto 1919: Russia turns __________________ Fear that new immigrants will bring SOCIALISM to U.S. 1921: QUOTA system enacted to restrict immigrants from specific countries

IMMIGRANTS IN THE 1920S FEBRUARY 26, 2015

National Origins Act: Number of immigrants in a given nationality could NOT exceed 2% of the number of that nationality living in U.S. in 1890 Example: British Immigrants in 1890: 3 million Amount of British Immigrants allowed in: 60,000 Italian population in 1890: 250,000 Amount allowed in: 5,000 Asian immigrants: 0 Quota system does NOT apply to Mexico Many Mexicans move to Texas & California for farming Faced discrimination/ lower work wages Rural immigrants resist CHANGE (cities; immigrants; etc.) 1915: Ku Klux Klan revived in Georgia Original KKK targeted African Americans New KKK still targeted African Americans & Jews, Catholics, and immigrants (GOAL: NO CHANGE) Over 5 million members Burned crosses/ boycotted businesses/ terrorized citizens

PROHIBITION 1919: Ban on manufacture, sale, & transport of alcohol Believe that alcohol caused all the problems in U.S. (divorce; crime; poverty; etc.) During WWI: believe that corn, wheat, & barley should be used for bread (not alcohol) 18th amendment a.k.a. Volstead Act Passed with RURAL vote Went into effect in 1920 Ignored in cities Speakeasies: secret bars you could enter by whispering password Kansas - 95% obeyed NY - 5% obeyed Prohibition did NOT stop drinking People just did it ILLEGALLY People make own alcohol, or purchase illegally from BOOTLEGGERS Al Capone: most notorious during Prohibition era (made MILLIONS) Pay off judges; police; politicians; etc. Crime continued under prohibition REPEALED in 1933 with 21 st amendment 20