1. The Jazz Age A Growing Economy
Chapter 17 Section 2

2. The Rise of New Industries
By the 1920s the automobile was an accepted part of American life
America’s wages increased, working hours decreased
Mass production – large scale manufacturing done with machinery increased supply and reduced costs

3. The Rise of New Industries
The Assembly Line and the Model T
Assembly Line – divided operations into simple tasks and cut unnecessary motion to a minimum
Workers were able to build a car in 93 minutes before the task had taken 12 hours
Model T
Henry Ford’s first assembly line product
In 1908 the first Model T sold for $850 dollars
In 1914 the price dropped to $490

4. The Rise of New Industries
High Wages for Workers
Ford also increased worker’s wages to $5 a day and he reduced the workday to 8 hour shifts
Ford created a Sociological Department
Renting space in one’s home to nonfamily members was strictly forbidden
The Social Impact of the Automobile
Eased the isolation of rural life and enabled people to live farther from work
The idea of the Commuter appeared

5. The Rise of New Industries
Consumer Goods
Electric Razors, facial tissues, frozen foods, home hair color
Indoor plumbing became common and as a result Americans became concerned with hygiene
Electric Irons, vacuum cleaners, washing machines, and refrigerators
Mouthwash, deodorants, cosmetics, and perfumes

6. The Rise of New Industries
Birth of the Airline Industry
Orville and Wilbur Wright created the first successful airplane flight
Aviation industry received a boost when Congress passed the Kelly Act
Authorized private airplane operators to carry mail
Charles Lindbergh – made a transatlantic solo flight in 1927

7. The Consumer Society Easy Consumer Credit Mass Advertising
Attitudes towards debt started changing as people began believing in their ability to pay their debts over time
“Buy now and pay in easy installments”
Mass Advertising
Advertisers preyed on consumers’ fears and anxieties

8. The Consumer Society The Managerial Revolution Welfare Capitalism
Companies were split into divisions
Managers were needed to run the new divisions
Welfare Capitalism
Companies allowed workers to buy stock, participate in profit sharing and receiving medical care and pensions

9. The Consumer Society The Decline of Unions Uneven Prosperity
Benefit programs made unions seem unnecessary to many workers
Open Shop – workplace where workers are not required to join a union
Uneven Prosperity
Thousands of African Americans were not enjoying the boom of the 1920s
Native Americans did not enjoy the boom either
Farmers in the South did not fare well in the 1920s

10. The Farm Crisis
On average farmers earned less than one- third of the income of workers in the rest of the economy
Technology allowed farmers to produce more but prices went down

11. The Farm Crisis Changing Market Conditions
During the war farmers were urged to produce more to meet the need for food supplies in Europe
Fordney-McCumber Act in 1922 – raised tariffs dramatically in an effort to protect American Industry from foreign competition
Farmers could no longer sell as much of their crops overseas

12. The Farm Crisis Helping Farmers
Senator Charles McNary of Oregon and Representative Gilbert Haugen of Iowa proposed a bill
McNary-Haugen Bill – plan in which the government would boost farm prices by buying up surpluses and selling them at a loss overseas
Congress passed the bill twice but Coolidge vetoed it both times
American farmers remained in a recession throughout the 1920s