1. Today’s Questions
What were the government’s beliefs during the Roaring Twenties?
How did Henry Ford’s assembly line affect business?
What did Americans spend their disposable income on in the Twenties?

2. The Roaring Twenties
An Introduction

3. Calvin Coolidge Hands off government Laissez faire economic theory
If the government left business alone, with no regulations, business would benefit the nation

4. Calvin Coolidge
It wasn’t the government’s job to help people with social and economic problems
Farmers
New machinery helped them produce more food in less time
Coolidge vetoed bill that would buy the extra food

5. Disposable Income National income rose by 35% $522 to $716
Americans had more money to spend
Bought goods
Did things for fun (leisure activities)

6. Henry Ford and His Model T

7. Henry Ford and His Model T
Assembly line
Sped up production
Lowered cost to make
Lowered price to buy
1914
Ford cut workday from 9 to 8 hours
Increased workers’ pay to $5 a day
Effects
Guaranteed plenty of workers for plants
Created new customers who could afford Ford cars

8. Henry Ford and His Model T
Produced 1 million in 1920
Cost to consumer $335
By the mid-1920s one every 10 seconds

9. Technology and its Effects
Products created faster and cheaper
Installment buying
repaying the amount borrowed in small monthly payments
Mostly only white middle class that could afford the new products

10. Technology and its Effects
Petroleum and electricity widely available
Electric vacuum cleaners
Washers
Sewing machines
Toasters
Fans