A New Economic Era Unit 2 Section 2 Part 7

Discussion Question How would you describe the United States after World War I? What were some things that were going on? How would you describe the United States after World War I? What were some things that were going on?

A. America After the War In 1924, the U.S. was prosperous In 1924, the U.S. was prosperous Economy was on the rise Economy was on the rise Consumers were spending money on new and exciting goods Consumers were spending money on new and exciting goods Macy’s was the largest dept. store in the world and made lots of money Macy’s was the largest dept. store in the world and made lots of money

B. Ford Revolutionizes Industry During the 1920s, Henry Ford created the Model T During the 1920s, Henry Ford created the Model T -first automobile that the common man could afford -first automobile that the common man could afford How did he make an affordable car? How did he make an affordable car? The Assembly Line The Assembly Line -cars were identical and simple -cars were identical and simple -used interchangeable parts -used interchangeable parts -Ford also hired experts to determine how workers can be more productive -Ford also hired experts to determine how workers can be more productive In its first year, the A.L. allowed Ford to make a car every hour and a half In its first year, the A.L. allowed Ford to make a car every hour and a half In 1920, Ford was making one car every minute, causing the price to drop lower In 1920, Ford was making one car every minute, causing the price to drop lower

He also paid his workers more, so they could afford to buy cars themselves He also paid his workers more, so they could afford to buy cars themselves

C. The effect on industry Other automobile companies began to spring up, also using the assembly line Other automobile companies began to spring up, also using the assembly line General Motors and Chrysler improved on Ford’s automobile by offering different models and colors General Motors and Chrysler improved on Ford’s automobile by offering different models and colors This competition helped the industry grow This competition helped the industry grow Other industries started using the assembly line began to mass produce their products as well Other industries started using the assembly line began to mass produce their products as well In the 1920s, productivity rose by 60% In the 1920s, productivity rose by 60%

Success of business led to welfare capitailism Success of business led to welfare capitailism -companies began to provide benefits to their workers to promote satisfaction and loyalty -companies began to provide benefits to their workers to promote satisfaction and loyalty -retirement pensions, paid vacations, etc -retirement pensions, paid vacations, etc

D. Industry Changes Society Demand for raw materials grew as well Demand for raw materials grew as well Motels, roadside restaurants, gas stations, etc, were created to deal with cars Motels, roadside restaurants, gas stations, etc, were created to deal with cars Tourism spread, because people could now travel long distances in a shorter time Tourism spread, because people could now travel long distances in a shorter time As cities grew, suburbs began to grow as well As cities grew, suburbs began to grow as well Many preferred living in suburbs and driving to work Many preferred living in suburbs and driving to work

E. The New Consumer New products led to a new kind of consumer and new ways of buying New products led to a new kind of consumer and new ways of buying New products included vacuum cleaners, and radios New products included vacuum cleaners, and radios Radios were the most popular item Radios were the most popular item

F. New Ways to Pay Installment Buying Installment Buying -paying for items over time in small payments -paying for items over time in small payments Credit Credit By the end of the 1920s, 90% of goods could be bought on credit By the end of the 1920s, 90% of goods could be bought on credit