Today’s Questions What were the government’s beliefs during the Roaring Twenties? How did Henry Ford’s assembly line affect business? What did Americans spend their disposable income on in the Twenties?

The Roaring Twenties An Introduction

Calvin Coolidge Hands off government Laissez faire economic theory If the government left business alone, with no regulations, business would benefit the nation

Calvin Coolidge It wasn’t the government’s job to help people with social and economic problems Farmers New machinery helped them produce more food in less time Coolidge vetoed bill that would buy the extra food

Disposable Income National income rose by 35% $522 to $716 Americans had more money to spend Bought goods Did things for fun (leisure activities)

Henry Ford and His Model T

Henry Ford and His Model T Assembly line Sped up production Lowered cost to make Lowered price to buy 1914 Ford cut workday from 9 to 8 hours Increased workers’ pay to $5 a day Effects Guaranteed plenty of workers for plants Created new customers who could afford Ford cars

Henry Ford and His Model T Produced 1 million in 1920 Cost to consumer $335 By the mid-1920s one every 10 seconds

Technology and its Effects Products created faster and cheaper Installment buying repaying the amount borrowed in small monthly payments Mostly only white middle class that could afford the new products

Technology and its Effects Petroleum and electricity widely available Electric vacuum cleaners Washers Sewing machines Toasters Fans