The Business of America Chapter 12, Section 3
Objectives Summarize the impact of the automobile and other consumer goods on American life Explain how prosperity affected different groups of Americans Explain in what ways the country’s prosperity was superficial
Main Idea Consumer goods fuel business boom of the 1920s as standard of living soars
Why It Matters Today? Business, technological, and social developments launch the era of modern consumerism
Industry Flourishes President Calvin Coolidge, “the business of America is business…The man who builds a factory builds a temple…the man who works there worships there.”
ELECTION OF 1924
President Calvin Coolidge 1923-1929 Conscientious, honest & had impeccable manners Least active president in U.S. history, took daily afternoon naps & proposed no new legislation.
Republican Presidents Coolidge and Hoover Lower taxes Profits up Give businesses more $ credit to expand Minimize government interference so business can flourish
The Impact of the Automobile Route 66 from Chicago to Los Angeles Towns emerge Gas stations Motels Shopping centers Housing styles change Garages Driveways Smaller lawns
HENRY FORD, THE MAN WHO REVOLUTIONIZED MANUFACTURING BY MECHANIZING THE ASSEMBLY LINE MODE OF PRODUCTION IN 1925 FORD WAS PRODUCING NEW MODEL T’S AT THE RATE OF ONE EVERY TEN SECONDS.
ASSEMBLY LINE PRODUCTION IN AN ASSEMBLY LINE EACH PERSON HAS A SPECIFIC TASK WHICH THEY REPEATEDLY PERFORM ALL DAY. THIS ALLOWS FOR SPECIALIZATION OF ONE SKILL AND ALLOWED HENRY FORD TO MASS PRODUCE AUTOMOBILES.
The Ford Assembly Line
The Chevy Assembly Line
$265 = $3,000 in 2012 $775.00 = $8,100.00 in 2012 THE AVERAGE FAMILY INCOME IN 1925 WAS APPROXIMATELY $2200.00, $22321.00 IN 2002 DOLLARS.
INADEQUATE PARKING AND ROADS WERE APPARENT BY THE MID 1920s
An early gas station…
The Impact of the Automobile First traffic light in Detroit Holland tunnel, 1st underwater tunnel links NYC and NJ NJ builds 1st cloverleaf intersection
Automobile Liberation Links isolated rural families Broadens vacation experiences Dating practices expand Urban sprawl results from workers living further from their jobs Economic prosperity Important status symbol
Impact of the Auto Humorist Will Rogers remarks to Henry Ford, “it will take a hundred years to tell whether you helped us or hurt us, but you certainly didn’t leave us where you found us.”
The Airplane Industry Mail Transportation Weather forecasting Radios and navigational equipment Transatlantic flights by Lindbergh and Earhart promotes commercial airlines
Standard of Living Soars Own 40% of world’s wealth Annual income rises 35% Spending increases Dependence on gasoline
Electrical Conveniences AC/DC allows factories to expand the suburbs Household appliances impact Housewifes lives made easier More free time to enjoy leisure activities Time to work jobs outside the home
Modern Advertising Companies hire psychologists Address people’s desire for youthfulness, beauty, health, and wealth National slogans and branding become familiar and make luxury items seem like necessities
A Superficial Prosperity The Needy Textile and steel make little profit Farming losses money from deep $ debt and high surpluses “Depressions are farm led and farm fed.”
Producing Greater Quantities of Goods Chain stores selling groceries, drugs, shoes and clothes start As businesses grow so to does the income gap between workers and managers
Buying Goods on Credit Lure consumers to buy in ever greater amounts by providing easy credit Installment plans allowed people to buy goods over an extended period, w/o having to put very much $ down at the time of purchase Banks provide low interest rates
Easy Credit Consumers buy with abandon Accumulate large personal debt Makes the economy a financial “house of cards”
Inventions & Trends of the 1920s Invention or Trend Effects of the Invention or Trend 5. Alternating Electrical Current 6. Modern Advertising 7. Installment Plans