Mr. Williams 10th Grade U.S. History

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The Economy During the 1920s
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Mr. Williams 10th Grade U.S. History New Economic Era Mr. Williams 10th Grade U.S. History

How did you earn the candy (money) during the simulation? Was this a fun simulation? Would it be fun if you had to do this 8-10 hours a day 5-6 days a week? How do you think workers feel who work on an assembly line similar to the one we had today?

Henry Ford Young Entrepreneur who began selling his Model T in 1908 To do this, he used the Assembly Line to increase amount of cars he could manufacture

Production system in which item being built moves along a conveyer belt to various workstations Workers had 84 specific jobs “The man who puts on a bolt does not put on a nut. The man who puts on the nut does not tighten it.” –Henry Ford

Model T Car sold for under $500 In its first year, produced a car every hour and half By 1920, produced a car every minute By 1929, 22 million cars in country

Cities Grow Detroit population grew from 500,000 to 1.5 million from 1910 to 1930 Akron population grew from 70,000 to 210,000 from 1910 to 1920

Suburbs Smaller towns located outside of urban areas Car travel allowed people to live at greater distances from their jobs Florida also grew as people were more able to travel

Impact of assembly line on the Economy Productivity rose by 60% Measure of output per unit of input such as labor Welfare Capitalism: system in which companies provide benefits to employees in an effort to promote worker satisfaction and loyalty

Industry Changes Society Demand for steel, glass, rubber and other materials grew Repair shops, filling stations, motels, restaurants all grew during the 1920s

New Products of 1920s Refrigerators, Vacuum Cleaners, Radios Dramas, Comedy Shows, News shows, Advertisements Between 1920 and 1930 60% of all families had a radio

New Ways to Pay Installment Buying: paying for an item over time in small payments Credit: Borrowing money to make these payments 90% of Durable Goods: Cars and appliance bought on Credit

Roaring ‘20s for Everyone? American farmers experienced hardship after WWI Farm prices fell Failures increased Income of farmers and value of farmland fell

What did Govt. Do? Fordney-McCumber Tariff Raising cost of foreign-grown products Helped in short term, but also hurt European market

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