Unit 4:

Chapter 14:

Section 1:

READ TO DISCOVER

1. How did the economic boom affect consumers and American businesses? CConsumers With wage increases and tax cuts, consumer buying power soared Everyone had electricity in their homes and bought electric appliances out the yin yang (sewing machines, washing machines, radios, etc.) AAmerican businesses To keep up with blistering demand, businesses experimented with new production strategies (scientific management – Frederick Taylor found that breaking work into smaller tasks to become more efficient)

2. How did the assembly line spur the growth of the automobile industry? IIt cut the production time in half, lowering production costs, and thus making automobiles more affordable to the middle class LLook at these stats… Model T in $ Model T in $ Automobile owners rose from 8 million to 26 million in the 1920’s By 1929, more than 1 million people worked in the automobile industry making it the nation’s largest industry

3. How did Henry Ford change working conditions during the 1920’s? IIncreases in assembly line productivity created a need for highly skilled management/clerical jobs (discriminated against African Americans) IIt led to highly repetitive work with little room for advancement for unskilled workers LLimited each worker to 1 or 2 specific tasks making the work dull and leading to high turnover CConcerned with high turnover, Ford shortened the work day to 8 hours and doubled wages To earn these wages, Ford monitored his workers personal lives Big into Americanization (learn English, personal hygiene, etc.)

4. How did widespread automobile use affect daily lives of Americans? RRevolutionized transportation BBy 1930, horse drawn vehicles diminished greatly along with the demand for passenger trains/trolley cars MMore than 400,000 miles of new roads were built during the 20’s along with billboards, new restaurants, and gas stations AAllowed rural people better access to their neighbors and city folks were able to travel to the country side positively affecting our economic growth DDecreased inner city population and led to the rapid population explosion in the suburbs

5. How did American industries encourage changes in consumer practices? AAlfred Sloan (Head of GM) built luxury cars and offered installment plans to allow average consumers the ability to purchase these expensive cars (pay for car over time) PProducts were made to look appealing as well as be functional (streamlining – shaping surfaces to be more wind resistant) PPlanned obsolescence – Consumers were encouraged to lease new goods/services when their old ones became out of date

DEFINE

Scientific Management CCreated by Frederick Taylor BBelieved that if industry broke work into smaller tasks, they could become more efficient TThis way of thinking led to the creation of the automobile assembly line

Assembly Line SStreamlined process for producing automobiles where the car is built in stages as it moves along an ‘assembly line’ TThis speeds up production, lowering costs, and thus making the automobile more affordable to more Americans TThis process became widespread in other industries and businesses

Auto-touring WWanting to see the fresh air of the country-side, millions of Americans used their new vehicles to tour the countryside (camping, vacations)

Installment Plan GGeneral Motors allowed average Americans the ability to afford luxury cars by paying for them in monthly installments that fit into their budget

Planned Obsolescence mmaking products specifically designed to go out of style so they could be replaced with a newer version. Consumers ‘traded in’ their older versions for newer models subsequently paying more $ each year for g/s and going into debt

IDENTIFY

Frederick W. Taylor MMechanical engineer & business consultant who came up with the idea of Scientific Management to speed up the production process & make it more efficient

Henry Ford BBorn in 1863 on a farm near Dearborn, Michigan. Grew up working as a machinist and engineer for Edison Illuminating Co. EExperimented with gas engines in his free time SStarted Ford Motor Company in 1903 and utilized the assembly line system to revolutionize automobile production

Model T Ford AA sturdy, low-cost automobile $ $290 11 st to come off Ford’s assembly line in 1909 2250,000 sold by 1914

Alfred P. Sloan HHead of General Motors who encouraged average Americans to buy his luxury cars through ‘installment plans’ that made them more affordable BBoosted sales & revenue for GM and became a common sales strategy for many American businesses that produced expensive goods/services