2. Growth in the 1920sGrowth in the 1920s  Technology stimulated rapid economic growth  Before WWI only 30% of factories were run on electricity  By 1929 70% of factories were run on electricity

3. Management and WorkersManagement and Workers  Many business adopted mass production techniques.  Assembly line introduced by Henry Ford  Business also tried to build better relationships with workers  Welfare capitalism- link workers more closely to the company they work for  Safety programs  Health and accident insurance  Stock options

4. Consumer EconomyConsumer Economy  In the 1920s more than 60% of households had electricity  Refrigerators, stoves, vacuum, radios  Business spent more money on advertising to persuade people to buy products  Newspapers  Radio adds  Installment buying- buying products by promising to pay a small amount over a period of time  Credit

5. The Automobile AgeThe Automobile Age  During the 1920s the car became an important part of American life  Almost 4 million American worked for auto companies  Henry Ford was a pioneer in making affordable dependable autos with his Model T  Built using the assembly line

6. The Ford Model-TThe Ford Model-T  Produced from 1908-1927 the attraction of the Ford Model-T was that its price never increased.  Costing $1200 in 1909, the price in 1928 was only $295.  By 1929 Ford was producing more than one car per minute.

7. Mass ProductionMass Production  Ford was able to sell cars at a low cost because they were mass-produced and every part was Standardized (only one colour and one engine size were available).  By the mid 1920s other car manufacturers cut into Ford’s sales by offering autos with various improvements  Began the practice of introducing new cars each year

8. Automobiles Effect On Other Industries  America’s new love of driving called for many new items  Highways  Gas stations  Rubber  Travel for pleasure became a regular part of daily life  Cars also contributed to the spread of the suburbs

9. Those Left BehindThose Left Behind  Railroad workers and coal miners had a difficult time as trucks took business from railroads and electricity replaced power  Workers wages rose slightly but the cost of living rose more  By 1929 nearly 3/4 ths of American families had incomes below $2,500