American History Chapter 19-2 A New Economic Era.

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The Economy During the 1920s

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Presentation transcript:

American History Chapter 19-2 A New Economic Era

Automobiles Change Industry Late 1800s: Cars were toys for the rich only. Henry Ford’s Model T changed American society.

Cars Became Affordable Ford created the 1 st assembly line for autos. – Item being built moves on a conveyor belt to different workstations. By 1928 Ford Co. produced a car every minute. – 22 million cars in the U.S. by – Cost dropped below $500/car.

Car Industry Continued: Ford Motor Co. dominated in the 1920s. – Ford paid workers well but was anti-union. Competition grew as GM & Chrysler came out with new designs/colors. Car manufacturing increased the demand for other products & businesses related to autos. – Rubber, steel, glass, petrol, etc. Other industries went to assembly line usage. – Productivity rose by 60%: Output per unit of input. – Welfare capitalism grew: Benefits provided to workers. Retirement pensions and recreation programs.

Recreation Programs

American Society Changes City populations boomed due to increased manufacturing. – Suburbs grew as cars allowed people to be more mobile. Tourism increased.

The New Consumer New products: Electric refrigerators/vacuums. The radio becomes highly popular. – Radio unified people. The airplane became a choice for public transportation. Advertising became a huge industry. – Created a demand for products. Consumers began using installment buying or buying on credit.

Radio

Roaring Twenties Not Prosperous For All Farmers struggled: – Demand decreased & crop prices plummeted. – Competition increased as Europe rebounded. – Natural disasters took a toll. Floods, insects, hurricanes. – Farm foreclosures increased.

Even When Things Seem Their Worst