1. 1 8-2 A Growing Economy Today’s Agenda 8-2 Main Points Homework Check Harding & Coolidge caricature Drawing Check Warm-Up Describe an advertisement that made you want to purchase the product. Why was it so convincing? What about the ad made you want to buy it? How did it catch your attention / what techniques did it use?

2. The Rise of New Industries 2 Americans standard of living rises Earning increased even though work hours decreased. From 12 hour days to 8 hour days From 6 days a week to 5 days a week Paid vacations Mass Production – the production of large quantities of goods using machines (assembly line) Increased supply and reduced costs Workers made more and the goods cost less

3. Ford, the Assembly Line, and the Model T Divided operations into simple tasks and cut unnecessary motion to a minimum 1913 - building a car went from 14 hours to 93 minutes Model T was Ford’s biggest seller Car prices dropped from $850 in 1908 to $490 in 1914 to $295 by 1924 Wages increased to $5 a day (doubled) Workday reduced to 8 hour shifts Installment Buying – pay for the car over time Economic Effects Industries related to the automobile industry grew Gas stations, steel mills, rubber industry, plate glass, nickel, and lead Social Effects Rural America less isolated People could live farther away from work Urban transportation (trolley) became less popular 3

4. Consumer Products People now had more disposable income (income after all taxes and living expenses). Americans bought new products for the home Electric razors, tissues, frozen foods, hair coloring, mouthwash, deodorant, cosmetics, perfumes, electric irons, vacuums, washing machines, refrigerators 4

5. Birth of the Airline Industry 5 Aviation industry began developing after the Wright brother’s first successful flight in 1903 Federal government began supporting the airline industry and the use of airplanes for the mail system – airmail service 1925 – Congress passed the Kelly Act – post offices hired private companies to carry mail 1926 – Air Commerce Act – federal aid to airports Transatlantic solo flight by Charles Lindbergh in the Spirit of St. Louis – roughly 3600 miles – ended any doubt about aircraft potential 1928 – 48 airlines in 355 American cities

6. The Radio Industry 6 Radio industry began after a circuit was invented made it possible to transmit sound long rage. Westinghouse Company broadcasted the news of Harding’s landslide election victory 1926 - NBC (National Broadcasting Company) set up a network of stations to broadcast daily radio programs 1927 – 700 stations across the country Sales of radio equipment grew (12 million radios were in use) 1928 – CBS (Columbia Broadcasting System0 set up a coast to coast network to compete with NBC. Advertising time was sold. Musicians, actors, and comedians were hired for shows.

7. Consumer Society Higher wages and shorter workdays = decade long buying spree that kept the economy booming! Shift from traditional attitudes of thrift and having debt as shameful Growth of buying on credit and installment buying 7

8. Mass Advertising To attract customers, manufacturers turned to advertising another booming industry Advertisers linked products with qualities with the era – progress, convenience, leisure, success, and style Advertisers also preyed on consumers fears and anxieties like social status, weight, aging 8

9. The Managerial Revolution Companies were divided into sections based on function with mangers hired to run each division. Sales Marketing Accounting Executives and owners were free from the day to day running Large number of new managers expanded the middle class adding to the nations prosperity This new business organization created more business profit which improved the standard of living 9

10. WHAT COULD BE THE NEGATIVE EFFECTS OF NEW TECHNOLOGIES AND TRENDS? 10

11. Uneven Prosperity Not all Americans shared in the economic boom African Americans who held factory jobs during WWI were replaced by returning servicemen Native Americans on reservations had few opportunities for work Immigrant farmers and factory workers had low wages Many in the deep south also left out of the boom 11

12. The Farm Crisis 12 Earned 1/3 of the income of other workers Technological advances (fertilizers, seed varieties, farm machinery) produced more but with no increase in demand = lower prices To produce more during the war many borrowed a lot to buy land and machinery – hard to pay back

13. Exit Out How did the new consumer society of the 1920’s affect Americans? What were the (Positive and negative) effects of innovations on people at all levels of American society? 13