2. A Business Boom New products and Americans’ power to purchase Conditions that made a consumer economy possible in the 1920s 1. 3. 4. 2. 5. What factors allowed for a rise in productivity in the 1920s? 1. 2. 3. 4. 5. 6. A Complex Businessman List Henry Ford’s admirable qualities and personal failings. 1. 2. 3. 4. 5. Industrial Growth List new businesses that arose to serve automobile travel 1. 2. 3. 4. 5. 8. 6. 7. 9. 10. Ch.14 sec.2 p.491-497

3. A Business Boom New products and Americans’ power to purchase New consumer products Conditions that made a consumer economy possible in the 1920s 1. 3. 4. 2. 5. Increased wages and incomes Clever advertising Lower costs Widespread availability of credit (installment) What factors allowed for a rise in productivity in the 1920s? 1. 2. 3. 4. 5. 6. Rapidly growing GNP New advertising techniques Electric power for homes and industries A plentiful supply of oil Efficient manufacturing techniques Easy credit terms for installment purchasing A Complex Businessman List Henry Ford’s admirable qualities and personal failings. 1. 2. 3. 4. 5. $5-a-day pay rate 8 hour work day Hired African Americans & people w/ disabilities Ran company harshly & fought unions Americanization program for foreign- born workers Industrial Growth List new businesses that arose to serve automobile travel 1. 2. 3. 4. 5. 8. 6. 7. 9. 10. garages Car dealerships motels campgrounds gas stations restaurants Suburbs expanded Truck hauling Paving highways Car insurance Ch.14 sec.2 p.491-497

4. Bypassed by the Boom Bypassed by the Boom Ch.14 sec.2 p.491-497

5. Bypassed by the Boom Bypassed by the Boom Unskilled laborers Agricultural workers Bituminous (soft) coal Railroads Workers In major industries Cotton Textiles

6. PLEASE DO NOW!!! PAIR SHARE 1.Make a list of 10 items that are commonly bought on credit. 2.How would American life be different if credit disappeared? BENEFITSDRAWBACKS

7. POLITICS AND PROSPERITY A BUSINESS BOOM CHAPTER 14 SECTION 2 KEY TERMS KEY PEOPLE 1.Consumer Economy 1. Charles and Frank 2.Installment Plan Duryea 3.Gross National Product 2. Henry Ford (GNP) 4.Assembly Line

8. POLITICS AND PROSPERITY A BUSINESS BOOM CHAPTER 14 SECTION 2 ESSENTIAL QUESTIONS 1.What role do businesses and consumers play in a consumer economy? 2.How were Henry Ford and the automobile important to the 1920s? 3.In what ways did industrial growth affect the economy of the 1920s? 4.Why did the economic boom bypass some people and benefit others? THE BIG IDEA During the 1920s, new products and Americans’ power to During the 1920s, new products and Americans’ power to purchase them grew rapidly, producing a decade of enormous purchase them grew rapidly, producing a decade of enormous business growth. business growth.

9. SETTING THE SCENE First fast-food chain First shopping center Roadside advertising Decade of the 1920s gave birth to the popular culture we know today

10. A CONSUMER ECONOMY 1. Increased wages and incomes 5. Widespread availability of credit 2. Clever advertising 3. New consumer products 4. Lower costs Conditions that made a consumer economy possible in the 1920s

11. BUYING ON CREDIT The Beginning of the Consumer Economy 1. Americans paid cash 2. Consumer goods 1. Americans paid cash 2. Consumer goods for everything become widely available for everything become widely available 3. Americans wanted modern4. Manufacturers needed 3. Americans wanted modern4. Manufacturers needed conveniences-cost a great deal to sell their goods conveniences-cost a great deal to sell their goods 5. Manufacturers developed 6. Customer makes payments and financed buying on the over time until debt is paid and financed buying on the over time until debt is paid Installment Plan Installment Plan 7. Clever advertising made this 7. Clever advertising made this form of buying acceptable form of buying acceptable List the products Americans were using the installment plan to buy. 60% of cars, 70% of furniture, 80% of vacuums, radios, and Refrigerators, 90% of washing machines

12. 1930’S HOME FURNISHINGS WITH INSTALLMENT (CREDIT) PRICES CREDIT, BEFORE THE 1920'S AMERICANS FELT IT WAS WRONG TO GO INTO DEBT THIS CHANGED AS MILLIONS OF PEOPLE BOUGHT THINGS THEY COULD NOT AFFORD ON CREDIT /

13. ELECTRIC POWER  Refrigerators, washing machines, & other power-hungry appliances created a surge in the demand for electricity.  Between 1913 & 1927 electric power customers quadrupled.  Part of this increase came from the expanding housing industry.  Cities gained electric power – the countryside did not.  Only 4 percent of American farms supplied with electricity.  The growth of General Electric Company illustrates how the increasing use of electricity went hand in hand with the jump in consumer sales.  General Electric became one of the world’s largest companies.

15. ADVERTISEMENT ANALYSIS WORKSHEET 1.What product, service, or point of view is being advertised? 2.Who is responsible for creating this advertisement? Why are they sending this message? 3.What is the purpose of this advertisement? (For example, is it intended to educate, entertain, inform, or something else?) 4.Who is the anticipated audience of the advertisement? Who is actually seeing the advertisement? 5.What does the advertisement say to the viewer? What lifestyles, values, opinions, and points of view are represented?

16. 6.What makes the advertisement biased in some manner? How is this bias demonstrated? What has been included or left out of the advertisement? 7.Why would the advertisement’s creators or the product makers have the need to be biased in their advertisement? 8.How might some people understand this advertisement differently from other? Would all viewers agree on what was being advertised and the purpose of the ad? 9.Would someone be likely to believe this advertisement? Why or why not? 10.Do you agree with the advertisement? Why or why not?

17. How do you become “best daddy in the world”? Just impress his friends.

18. ADVERTISING BBefore 1920, advertisements had provided fairly basic information about the product. An ad might have noted a products quality of fabric, smart design, and affordable price. AAdvertising in the 1920s, especially in mass magazines, spoke less about the product and more about how the product could enhance the consumer’s image. The ads appealed to the consumer’s emotions. AADVERTISING, BECAUSE MANY OF THE NEW PRODUCTS OFFERED FOR SALE WERE NOT NECESSITIES, MANUFACTURES HAD TO CONVINCE PEOPLE THEY NEEDED THEM THROUGH ADVERTISING

19. ADVERTISING

20. ADVERTISING, BECAUSE MANY OF THE NEW PRODUCTS OFFERED FOR SALE WERE NOT NECESSITIES MANUFACTURES HAD TO CONVINCE PEOPLE THEY NEEDED THEM THROUGH ADVERTISING /

21. ADVERTISING BECAME THE VEHICLE TO SELL MASS CULTURE

22. RISE IN PRODUCTIVITY  In order to meet consumer demand, productivity needed to increase. - Productivity is a worker’s level of output, whether in goods or in services, over a given period.  One measure of productivity is the Gross National Product (GNP) - The total value of goods and services a country produces annually.  All of the following helped increase productivity by 6% every year between 1921 and 1929. Consumers buying spree was helped by Persuasive Advertising Electric Power Installment Plan

23. PAIR SHARE 1927 What factors allowed for a rise in productivity in the 1920s? 1. Rapidly growing GNP 2. New advertising techniques 3.Electric power for homes and industries 4. A plentiful supply of oil 5. Efficient manufacturing techniques 6. Easy credit terms for installment purchasing

24. PAIR SHARE  What role do businesses and consumers play in a consumer economy?

25. FORD AND THE AUTOMOBILE 1. 1896 – Ford perfected a lightweight gas-powered car he called the “quadricycle.” 2. 1903 – started his own automobile company. 3. 1908 – Ford sold 30,000 of an improved vehicle – the Model T

26. FORD’S ASSEMBLY LINE GOAL – “Democratize the automobile” – selling them at prices ordinary people could afford. TO ACHIEVE GOAL – of Ford adapted the assembly line – a manufacturing process in which each worker does one specialized task in the construction the final product. - Ford did not invent the assembly line, but he made it more efficient. The assembly line moved while each worker stayed in place. IMPACT – Ford becomes one of the most influential people of the 20 th century. FORD’S SUCCESS – Came partly from vertical consolidation – which means controlling the businesses that make up phases of a product’s development. - Ford owned – iron mines, blast furnaces, steel mills, coal mines, forests, glassworks, railroads, ships and tool shops.

28. A COMPLEX BUSINESSMAN Henry Ford had both admirable qualities and personal failings HENRY FORD $5-a-day Pay rate Ran his company harshly and used violence to fight unions Americanization program for foreign-born workers Workers enrolled in English & civics classes let investigators inspect their homes eight-hour workday hired people who wouldn’t be hired elsewhere – African Americans & people with disabilities.

29. INDUSTRIAL GROWTH Through Ford’s genius, automobile making became the nation’s biggest single manufacturing industry in the 1920s.  Automakers used 15 percent of America’s steel  80 percent of its rubber  Half of its glass  65 percent of its leather upholstery  7 billion gallons of its gasoline every year. Under Republican laissez-faire policies the value of the nation’s businesses soared.  From 1919 to 1929, 200 of the top American companies nearly doubled their total worth - $43 billion t $81 billion.  Rapid business expansion opened up new opportunities for smaller companies.

30. INDUSTRIAL GROWTH Thousands of new businesses arose to serve automobile travel THE AUTOMOBILE Garages Car Dealerships Motels Camp Grounds Gas Stations Restaurants Millions of dollars Spent paving highways Car Insurance Installment Plans (Credit Cards)

31. THE 1920s BIOGRAPHY HENRY FORD THE TIN LIZZY TYCOON 3 – Interesting facts about Henry Ford the man. 2 – Interesting facts about the Ford Motor Company 1 – One thing you admire about Henry Ford and One thing that you could learn from him.

32. PAIR SHARE  How were Henry Ford and the automobile important to the 1920s?

33. INDUSTRIAL GROWTH Businesses unrelated to the automobile industry also boomed. Movie Industry Radio Broadcasting Publishing Aviation Domestic Airlines Mail and other goods

34. PAIR SHARE  In what ways did industrial growth affect the economy of the 1920s?

35. While most Americans enjoyed a better standard of living, others struggled to survive. Unskilled laborers African American Migrant workers Agricultural Industry Farmers Cotton Textiles Bituminous (soft) Coal Industry Railroads BY PASSED BY THE BOOM

36. PAIR SHARE  Why did the economic boom bypass some people and benefit others?