2THE RISE OF NEW INDUSTRIES Mass production and the assembly line allowed new industries, such as automobile and airplane manufacturing, to grow.
3THE ASSEMBLY LINE AND THE MODEL T Assembly Line: developed by Henry Ford—divided operations into simple tasks and cut unnecessary motion to a minimum.By 1925-a Ford car was rolling off the line very 10 seconds.Model-T: The “Tin-Lizzie” or “flivver”.Example of “elasticity”—the economic concept of how sensitive product demand is to price.1908- sold for $8501914: sold for $4901925 sold for $295Lower the cost per car and increase the volume of sales: Business philosophy
4High Wages for WorkersFord increased workers’ wages in 1914 to $5 a day. (double the salary)Also reduced the workday to 8 hour shifts.Did this to build up workers loyalty and to undercut union organizers.Strings attached: Sociological Department:Set requirements workers had to meet.Ex. Renting space to nonfamily members in home forbidden.
5SOCIAL IMPACT OF THE AUTOMOBILE Cars revolutionized American life.Eased the isolation of rural life and enabled more people to live farther from work.Other forms of transportation such as the trolley became less popular.
6Consumer Goods NEW GOODS In response to rising disposable income—many other new goods came on the market.Electric razors, facial tissues, frozen foods, hair colorHousehold cleaning productsElectric irons, washing machines, refrigerators,Mouthwash, deodorant, cosmetics, and perfumes.
7Birth of the Airline Industry December 1903: Wilbur and Orville Wright first crewed powered flight in history.Glenn Curtiss: invented aerilons (surfaces attached to wings that can be tilted to steer the plane.His company began to build and sell first airplanes1925: Congress passed the Kelly Act: authorized the Post Office to contract with private airlines to deliver mail.1927: Charles Lindbergh made the solo transatlantic flight.By end of 1928: 48 airlines serving 355 American cities.
8RADIO INDUSTRYNovember 1920-news of Harding’s landslide election win broadcast on KDKA in Pittsburgh—one of first public broadcasts.1926:NBC set up.1928: CBS set up.
9CONSUMER SOCIETYEasy Consumer CreditManagerial RevolutionThe idea of credit became more appealing in the 1920’s because people began to believe in their ability to pay it off over time.Mass Advertising:Became popular to persuade people to buy these new items.Industries began to create modern organizational structures.Began to split companies into divisions such as sales, marketing, and accounting.Then needed managers to run these divisions.Helped to expand the size of the middle class.
10WELFARE CAPITALISMThe Decline of UnionsUneven ProsperityWelfare Capitalism: Companies allowed workers to buy stock, participate in profit-sharing, and receive medical care and benefits.Open Shop: workplace where employees were not required to join a union.Decline of unions in 1920’s because of benefit’s programs.Thousands of African Americans held factory jobs during WWI. When servicemen came home, they lost those jobs.Native Americans were isolated on reservations (although granted citizenship in 1924)Immigrants from Europe found it difficult to get work.Deep South was left out of the economic boom.
11THE FARM CRISISAmerican farmers did not share in the prosperity of the 1920’s.They earned approx. 1/3 less than workers in the rest of the economy.Even though technology gave them advancements in equipment, the demands did not really increase so prices stayed low.