The Jazz Age A Growing Economy Chapter 17 Section 2 1920 - 1929

The Rise of New Industries By the 1920s the automobile was an accepted part of American life America’s wages increased, working hours decreased Mass production – large scale manufacturing done with machinery increased supply and reduced costs

The Rise of New Industries The Assembly Line and the Model T Assembly Line – divided operations into simple tasks and cut unnecessary motion to a minimum Workers were able to build a car in 93 minutes before the task had taken 12 hours Model T Henry Ford’s first assembly line product In 1908 the first Model T sold for $850 dollars In 1914 the price dropped to $490

The Rise of New Industries High Wages for Workers Ford also increased worker’s wages to $5 a day and he reduced the workday to 8 hour shifts Ford created a Sociological Department Renting space in one’s home to nonfamily members was strictly forbidden The Social Impact of the Automobile Eased the isolation of rural life and enabled people to live farther from work The idea of the Commuter appeared

The Rise of New Industries Consumer Goods Electric Razors, facial tissues, frozen foods, home hair color Indoor plumbing became common and as a result Americans became concerned with hygiene Electric Irons, vacuum cleaners, washing machines, and refrigerators Mouthwash, deodorants, cosmetics, and perfumes

The Rise of New Industries Birth of the Airline Industry Orville and Wilbur Wright created the first successful airplane flight Aviation industry received a boost when Congress passed the Kelly Act Authorized private airplane operators to carry mail Charles Lindbergh – made a transatlantic solo flight in 1927

The Consumer Society Easy Consumer Credit Mass Advertising Attitudes towards debt started changing as people began believing in their ability to pay their debts over time “Buy now and pay in easy installments” Mass Advertising Advertisers preyed on consumers’ fears and anxieties

The Consumer Society The Managerial Revolution Welfare Capitalism Companies were split into divisions Managers were needed to run the new divisions Welfare Capitalism Companies allowed workers to buy stock, participate in profit sharing and receiving medical care and pensions

The Consumer Society The Decline of Unions Uneven Prosperity Benefit programs made unions seem unnecessary to many workers Open Shop – workplace where workers are not required to join a union Uneven Prosperity Thousands of African Americans were not enjoying the boom of the 1920s Native Americans did not enjoy the boom either Farmers in the South did not fare well in the 1920s

The Farm Crisis On average farmers earned less than one- third of the income of workers in the rest of the economy Technology allowed farmers to produce more but prices went down

The Farm Crisis Changing Market Conditions During the war farmers were urged to produce more to meet the need for food supplies in Europe Fordney-McCumber Act in 1922 – raised tariffs dramatically in an effort to protect American Industry from foreign competition Farmers could no longer sell as much of their crops overseas

The Farm Crisis Helping Farmers Senator Charles McNary of Oregon and Representative Gilbert Haugen of Iowa proposed a bill McNary-Haugen Bill – plan in which the government would boost farm prices by buying up surpluses and selling them at a loss overseas Congress passed the bill twice but Coolidge vetoed it both times American farmers remained in a recession throughout the 1920s