1. “Why did the U.S. economy “boom” after WWI?
Unit 4
Essay 1
“Why did the U.S. economy “boom” after WWI?
(Who was left out?)

2. I. Increase in consumer spending ?
The economy was growing =
more BUSINESS activity & JOBS
the economy is “BOOMING”
The “Third Industrial Revolution”
Modern ADVERTISING encouraged more SHOPPING
CREDIT was widely AVAILABLE

3. A. GROWING / “Booming” Economy
“SCIENTIFIC MANAGEMENT”=
Work-TIME studies (EFFICIENCY studies) makes work….
SIMPLER & FASTER
Based on FRED TAYLOR’s book: “Principles of Scientific Management”
Taylor’s TIME-MOTION studies 
Modern ASSEMBLY LINE at
Henry Ford’s auto factory

4. Scientific Management
Example:
Joe Worker – paid $8/hr.
Joe can make 25 widgets per hour
So, how much does it cost Mr. Boss to make one widget ?
.32 cents
What if Joe could make 42 widgets per hour – faster?
How much per Widget?
.19 cents for 1 widget
What can Mr. Boss do now, to sell more widgets and make a higher profit ?
Answer: Lower the price he charges consumers, for a widget !
What is America BEST known for in the world ?
Answer: Business
What is “efficiency” in business ?
Making MORE for LESS costs
This is what Americans are known for – THE most productive worker in the world!
Americans make more for less cost = most productive workers in the world !

5. Scientific Management
Ford’s factories suffered from high TURNOVER rates
People were working like MACHINES
Ford’s solution =
“8 for 5” – reduced work day to 8 hours for
$5 per day !
Makes workers HAPPIER
Result =
Only 1 HOUR to make a Model-T
One rolls off assembly line every 45 seconds !

6. Scientific Management
Results of mass produced goods:
CHEAPER PRICES
Model-T costs only
$290
Industrial PRODUCTIVITY
increased by 70% =
AMOUNT of goods in 1 HOUR
STANDARDIZED products, common now (WWI lesson)
Worker PRODUCTIVITY increased by 50% =
workers making 50% more GOODS !

7. Unit 4 – Essay 1 Interactive Notes Q&A’s
A growing economy means more businesses and more jobs, thus more people making and spending money. How much did the average American’s income rise during the 1920’s ? What/who encouraged Americans to spend their money ? Pg. 425
2. How did the automobile change American life, during the 1920’s ? List your answers with “bullets”. Pg

8. B. Modern ADVERTISING Scientific Marketing “the science of selling”
Based on:
consumer studies & SURVEYS
Tell companies what shoppers WANT,
PSYCHOLOGICAL studies tell companies what to MAKE
How to make goods ATTRACTIVE
How to make AD’s more appealing/attractive

9. B. Modern Advertising “Mass MEDIA”
Helps advertising spread to nearly every shopper
(Magazines, Newspapers, Radio)
NATION-wide coverage 
a shared national EXPERIENCE =
Americans get the same NEWS, SPORTS, AD’S, etc.

10. Examples Magazine Examples: TIME Magazine, Reader’s DIGEST, New YORKER
Radio Shows:40% of households had them by 1930 NBC and CBS start as radio “networks”
Newspapers: Pulitzer and HEARST compete for readers—introduce ad’s and “COUPONS” to buy goods, groceries, etc.

11. B. Modern Advertising
Answer Question in notes
Do you think Americans share the “same experiences” from mass media today, like they did in 1920’s? Why or why not ?

12. C. Easy CREDIT No “plastic money”, but “INSTALLMENT Plan” =
buy NOW, PAY later over an extended period
Most Americans
Don’t worry about
DEBT, or
“over-EXTENDING” themselves

13. Interactive Notes Q&A’s
Pg. 465
3. Why did farmers take out loans during WWI ?

14. II. Who’s not included in “spending binge” ?
FARMERS suffered – Why?
Decline in DEMAND –
WWI increased demand, but……After WWI…..
farmers left with large SURPLUS of food after war  Decline in DEMAND 
Farmer’s income declines
$10 billion (1919) 
$4 billion (1921)

15. II. Who’s not included in “spending binge” ?
2. Farmers who BORROWED to increase production
could not PAY BACK 
Banks “FORECLOSED”
3. Congress tries “PRICE CONTROLS” to help
Pres. COOLIGE vetoes bill,
So farmers got no help from
the GOVERNMENT

17. Media “experience”