Chapter 21 Normalcy & Good Times Section 2 A Growing Economy.

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Presentation transcript:

Chapter 21 Normalcy & Good Times Section 2 A Growing Economy

The Rise of New Industries Mass production – large scale product manufacturing usually done by machinery, increased the supply of goods and decreased costs. Greater productivity led to new industries.

The Assembly Line The assembly line, used by Henry Ford, greatly increased manufacturing efficiency by dividing up operations into simple tasks that unskilled workers could perform.

The Assembly Line Ford’s product, the Model T (Tin Lizzie) sold for $850 the 1 st year but dropped to $490 after mass production.

Henry Ford

The Social Impact of the Automobile Henry Ford changed American life with his affordable automobiles. Small businesses, garages, and gas stations opened. The petroleum industry expanded. The isolation of rural life ended. People could live farther away from work.

The Consumer Goods Industry More disposable income made innovations affordable. From electric razors to frozen foods and appliances, Americans wanted an easier life.

1 st Electric Razor

1 st Juicer

The Airline Industry By 1919 the Post Office had expanded airmail service across the continent with the help of the railroad connections.

Charles Lindbergh 1927 – took a transatlantic solo flight, which gained support for commercial flight – 48 airlines served 355 American cities.

Charles Lindbergh

The Radio Industry 1926 – National Broadcasting Company (NBC) established a permanent network of radio stations to distribute daily programming – Columbia Broadcasting System (CBS) competed with NBC.

The Consumer Society Higher Wages and shorter workdays led to an economic boom. Attitudes toward debt changed, as they believed they could pay back what they owed later.

Mass Advertising Used to convince Americans that they needed new products. Ads linked products with qualities that were popular to the modern era (convenience, leisure, success, fashion, and style)

Welfare Capitalism In the 1920s, employers promoted an open shop, a workplace where employees were not required to join a union. Welfare capitalism, where employees were able to purchase stock, participate in profit sharing, and receive benefits, made unions seem unnecessary.

The Farm Crisis Returns American farmers did not share in the prosperity in the 1920s. Prices dropped as technology increased. Farmers prospered during the war, but after they had little money to buy new technology. Pres. Coolidge twice vetoed a bill to aid farmers, fearing it would make the situation worse.

End of Section 2 End of Section 2 Next: Section 3 The Policies of Prosperity