Growing Economy Chapter 8 - Section Chapter 8 - Section

OverviewOverview During the 1920’s, mass production and the assembly line revolutionized industry and society. Wages increased and work hours decreased providing people with more time and money to spend on consumer goods. the growing automobile industry gave rise to new businesses and eased the isolation of rural properties. The airline and radio industry expanded during the 1920’s and advertising became an important tool for selling goods. While many people benefitted from the prosperous economy, farmers suffered the most from falling agricultural prices.

RadioRadio Radio broadcasted: Baseball Boxing Drama shows Music News Radio broadcasted: Baseball Boxing Drama shows Music News

Radio and Sports Economic prosperity of 1920’s People went to games, theatre, concerts, dancing Radio broadcasted games live Economic prosperity of 1920’s People went to games, theatre, concerts, dancing Radio broadcasted games live

Hollywood / Music / Radio Shows Sound not possible for films 1st broadcast was of Hardings Presidential election Radio broadcasted dramas, westerns, Sound not possible for films 1st broadcast was of Hardings Presidential election Radio broadcasted dramas, westerns,

Poets and Writers Enerst Hemmingway A Farewell to Arms F. Scott Fitzgerald The Great Gatsby Enerst Hemmingway A Farewell to Arms F. Scott Fitzgerald The Great Gatsby

Rising Standard of Living 1920’s - Increased living standard People made more money on avg 22% - 25% more U.S. Steel changed work from 12 hr day to 8 hr day International Harvester co. started 2 week paid vacations 1920’s - Increased living standard People made more money on avg 22% - 25% more U.S. Steel changed work from 12 hr day to 8 hr day International Harvester co. started 2 week paid vacations

Change in Business Many companies allowed employees to buy stock / receive benefits / medical care / profit sharing = “Welfare Capitalism” “Open Shops” - Many companies avoided union issues by offering employees better pay & benefits Many companies allowed employees to buy stock / receive benefits / medical care / profit sharing = “Welfare Capitalism” “Open Shops” - Many companies avoided union issues by offering employees better pay & benefits

Charles Lindbergh Won Orteig Prize Spirit of St. Louis flew from Long Island NY to Paris France (25 yrs old) Awarded the Medal of Honor Won Orteig Prize Spirit of St. Louis flew from Long Island NY to Paris France (25 yrs old) Awarded the Medal of Honor

New Consumer Society New products in 1920’s People concerned about hygiene - mouthwash / deodorant / cosmetics / perfumes /Household Cleaning products / vacuums cleaners washing machines / Elec. Irons / elec. shavers / refrigerators / gas stoves / cookware / New products in 1920’s People concerned about hygiene - mouthwash / deodorant / cosmetics / perfumes /Household Cleaning products / vacuums cleaners washing machines / Elec. Irons / elec. shavers / refrigerators / gas stoves / cookware /

Credit became readily available - buy now, pay later 75% of People bought radios and cars on installment plans Mass advertising - consumer appeal Commercial Credit became readily available - buy now, pay later 75% of People bought radios and cars on installment plans Mass advertising - consumer appeal Commercial Consumer Society - Credit

Radio Commercial Ovaltine

Rice Krispies Rice Krispies Rice Krispies Rice Krispies

Radio Industry Pres. Hardings election - one of the first radio addresses NBC stations across U.S. Sales went from $12 mil.yr 1921 to $842 mil yr. in 1929 CBS - Colombia Broadcasting system - competed with NBC Pres. Hardings election - one of the first radio addresses NBC stations across U.S. Sales went from $12 mil.yr 1921 to $842 mil yr. in 1929 CBS - Colombia Broadcasting system - competed with NBC

Airline Industry Aircraft industry began (Glenn Curtis) Military bought planes Post office - airmail / Flew mail from Washington to NY / Expanded to entire U.S. Air Commerce Act - Fed Funding for airports Commercial Airlines in U.S. Aircraft industry began (Glenn Curtis) Military bought planes Post office - airmail / Flew mail from Washington to NY / Expanded to entire U.S. Air Commerce Act - Fed Funding for airports Commercial Airlines in U.S.

Auto Industry - Assembly Line Henry “Installed” first assembly line Increased manufacturing efficiency produce car every 93 minutes (Prev. 12hrs) By car off assembly line every 10 sec. Henry “Installed” first assembly line Increased manufacturing efficiency produce car every 93 minutes (Prev. 12hrs) By car off assembly line every 10 sec.

Model - T Model T - first assembly line car $850 / $490 / $360 / $ over 9 mil. cars lower cost = increased sales Ford factory workers wages = $5 day Model T - first assembly line car $850 / $490 / $360 / $ over 9 mil. cars lower cost = increased sales Ford factory workers wages = $5 day

Impact of Cars Opened new types of jobs and businesses Changed “Rural Life” - most towns now in reach People began to commute to work Opened new types of jobs and businesses Changed “Rural Life” - most towns now in reach People began to commute to work

Farm Crisis Did not share in the prosperity of the 1920’s Able to produce more - demand was low = low price Called = Quiet Depression Did not share in the prosperity of the 1920’s Able to produce more - demand was low = low price Called = Quiet Depression

Questions??? H.W. - Ch.7 Sec.2 Questions & Ch.8 Sec.2 Questions