THE BOOOM TIMES THE BOOM TIMES

PROSPERITY People now have more money Gross National Product (GNP) - means the amount of goods/services produced by an economy Goods = cars, food, metal (material goods) Services = lawn mowing, cooks, plumbers, etc. US GNP grew from 70 billion to 100 billion from Average growth of 5.3% per year That’s almost the SAME AMOUNT of growth as Korea when they were industrializing America GNP growth rate expected to be 0.9% this year

PROSPERITY (cont’d) Average purchase = 32% More money = more things to buy New electronics Sewing machines Washing machines Radio Demand = high

Henry Ford Born in Dearborn, Michigan, 1863 Henry Ford - founder of Ford Automobiles Smart business man Stressed morality and American values No alcohol/tobacco Foreign workers were taught English He monitored his factories closely

Henry FORD Scientific management - work could be faster and more efficient if broken down to numerous pieces Used scientific management to create assembly line, a new production method

Ford and his “MODEL T” Ford joined automobile industry in 1903, and in 1908, Model T was invented AKA “Tin Lizzie” 5,000 parts/car Assembly line = more speed More speed = more cars More cars = more money Ford wanted every ordinary American Family to own a Model T

Model T Average family income in the 1920’s =$15,000 Cost of Model T in 1924 = $290 Automobile registrations = 8 mil. to 24 mil. 1 car / 5 citizens Created jobs 1 million jobs in automobile industry in 1929 Became a part of America culture

Model T Everyone knew it =

The Effects of Automobiles Before, people use horses Now, use cars

Effects of Automobiles (cont’d) BY 1930, cars, trucks, buses >> horses 400,000 miles traffic built New structures built near highways Billboards Drive-in restaurants Filling stations Tourist cabins People could easily go to other places with more speed and comfort Shopping malls People could live in suburbs

Auto-tourism People went around in cars and went sightseeing Liked fresh air in countryside

Family Life More people had automobiles Teenagers went out more to hang out Critics didn’t like it because family value was gone Also, many issues traffic accidents Pollution traffic jams

Creating Consumers Henry Ford and his competitors started using different strategies to create demand among consumers installment plan - a type of payment that the car companies offered to their consumers, paying a certain amount of money overtime.

Creating Consumers (cont’d) Manufacturers started to design their items more pleasing to the eye, and seem more functional “Planned obsolescence” - designing new models to quickly become obsolete and out fashion so that they can replace them with new models.

Obsolete Designs Vs. New Designs

Advertising Advertising became big business during the 1920s Billboards Magazines Newspapers Radio Most advertisements were aimed towards women.

Citations model-t-1a.jpg model-t-1a.jpg he_US_in_ he_US_in_1920