Economics and the Age of the consumer By Sarah Nichols The 1920 was an age of economic prosperity fostered by laissez-faire policies and innovation, but at the same time, it was accompanied by the deterioration of inner cities and environmental degradation.

Economic Expansion 40% of worlds total wealth in America SUPPORTS BUSINESS Laissez-faire, federal government Low interest rates Pent-up demand- construction and building etc. Helps create an environment for consumerism and economic growth in the U.S., helps to establish the US as an economic powerhouse

40% of worlds total wealth in America

Economic Expansion- 2 Tools that furthered industry and economic expansion, making the trend of consumerism economically feasible and profitable Mechanization Machines replace handwork Use of power increases: 1929- US produces more electricity than rest of world (1921-1929) Industrial output almost doubles Rationalization Simplify complex processes Interchangeable parts Moving assembly line- Henry Ford (pre WW1) Frederick Taylor: time-motion studies “Taylorism” / standardization

Mechanization and Rationalization Electricity Assembly line

Age of the Consumer Bruce Barton, The Man Nobody Knows (1925) Advertising and salesmanship/ “Jesus founder of modern business” Attractive goods/ changing models Installment plans Inventions / technological advances : refrigerators, motion pictures (multipliers), not seen as necessary appliances but were produced and sold at high volume

Age of the Consumer-examples 1920s – Automobile 1929, 23 million private cars / average 1 per family Manufacture of auto products Consumption, rubber, paint, glass, nickel, petroleum products Road-building program: 662,000 miles- 1929 Increased employment / growth of tourism Encouraged amateur mechanics and explorers Increased travel comfort and speed

1919

Age of the Consumer-3 Cars became symbols: freedom, prosperity, individualism Owning an automobile over a house Undesirable results Scenery ruined: gas stations / billboards Traffic jams Accidents Air pollution Neglect of public transportation: deterioration of inner cities

UNDESIRABLE RESULTS -spoiled scenery - Inner city deterioration

Conclusion The 1920s led to great economic and technical advances however the impact on the environment and inner city life was a determent to American society. With the invention of the automobile everyday Americans saw more of the U.S. than most previous generations could have dreamed of. Although owning an automobile was seen as important because it increased a persons opportunities and showed wealth. As consumerism began to spread through the U.S. and became vital to sustaining the post-war economy, America became increasingly a consumer based economy which we still see today.