Industrialization, Prosperity, and Social Change

Why Study the 1920s? Many historians argue that the United States became a modern nation during the 1920s.

Why Study the 1920s? Traditional  Agrarian economy (mostly farming)  People spread out in rural areas  Strong sense of traditional morality and religion  Regional culture Modern  Industrial economy (mostly manufacturing)  People concentrated in cities  Challenges to traditional morality; changes in fashion and culture  National culture

Why Study the 1920s? Increasing prosperity is essential to explaining the changes in the United States during the 1920s.

How did the American economy change during the 1920s?

Economic Growth in the 1920s Write in your notebook: According to this chart, how did the US economy change during the 1920s? This chart shows that the US economy grew rapidly and steadily from 1921 to 1929.

Why Did the Economy Grow? Fun Fact  In 1929, American industry produced almost twice as much stuff as it did in 1921  Yet the number of people employed in manufacturing stayed constant between 1919 and 1929  In your notebook: what explains this growth in output? Why the Economy Grew  Higher productivity = amount of output per unit of input (for instance, person-hours)  Enormous growth in industrial productivity during the 1920s

Why Did Productivity Increase?  New technology  Mechanization – using machines to produce goods  Assembly line  Scientific management (aka Taylorism)  Focus on carefully analyzing and controlling workers’ behavior to increase productivity  Increasingly popular from 1880s to 1910s; ideas were widely implemented by the 1920s  New technology  Mechanization – using machines to produce goods  Assembly line  Scientific management (aka Taylorism)  Focus on carefully analyzing and controlling workers’ behavior to increase productivity  Increasingly popular from 1880s to 1910s; ideas were widely implemented by the 1920s

But not everybody gained from this…  Wages did rise during the 1920s  But corporate profits rose much more  Farmworkers didn’t gain much  Wages did rise during the 1920s  But corporate profits rose much more  Farmworkers didn’t gain much

How did economic growth affect life for average Americans?

Changes in Living Standards  Increased income  Decreased working hours  More affordable stuff  In your notebook: What would you do if you had more money and more free time?  Increased income  Decreased working hours  More affordable stuff  In your notebook: What would you do if you had more money and more free time?

Leisure Time and Luxury Goods  Americans started spending more money on luxury goods  New (or newly affordable) products  Cars  Appliances  More time for leisure activities  Sports  Movies  Radio  Americans started spending more money on luxury goods  New (or newly affordable) products  Cars  Appliances  More time for leisure activities  Sports  Movies  Radio

Consumer Culture  Date: 1920s  Definition: a culture (way of doing things) that encourages people to buy more goods and services in order to display their social status  Significance  Stimulates economic growth by encouraging people to spend money  Changes lifestyles by pushing people to own more luxury goods  Date: 1920s  Definition: a culture (way of doing things) that encourages people to buy more goods and services in order to display their social status  Significance  Stimulates economic growth by encouraging people to spend money  Changes lifestyles by pushing people to own more luxury goods

Culture Goes National  Before the 1920s, region was very important to people’s identities and cultural experiences  The advent of mass media (movies, radio) made some shows popular across the country  National celebrities (Babe Ruth, Charlie Chaplin, Jack Dempsey) emerged  Before the 1920s, region was very important to people’s identities and cultural experiences  The advent of mass media (movies, radio) made some shows popular across the country  National celebrities (Babe Ruth, Charlie Chaplin, Jack Dempsey) emerged

Changes in Values Traditional  Thrift, self-denial, and saving money  Children obey their parents  Women as submissive  Traditional religion: follow the rules now, get into Heaven later  Community before the individual Modern  Consumer culture and spending  Children assert independence  More independence for women  Declining influence of religion; focus on immediate gratification  Individual happiness comes first

The Automobile and Social Change  By 1929, half of all American families owned a car  Encouraged the growth of suburbs  Spurred tourism  Established a new sense of freedom  Let young people escape the supervision of their families  By 1929, half of all American families owned a car  Encouraged the growth of suburbs  Spurred tourism  Established a new sense of freedom  Let young people escape the supervision of their families

The Big Picture  The United States experienced unparalleled prosperity in the 1920s  Wealthier economy overall  More buying power for most workers  This prosperity led Americans to develop a national consumer culture  More time spent on leisure activities  More money spent on luxury goods  Change in values  The United States experienced unparalleled prosperity in the 1920s  Wealthier economy overall  More buying power for most workers  This prosperity led Americans to develop a national consumer culture  More time spent on leisure activities  More money spent on luxury goods  Change in values