1. Prosperity in the 1920s The boom in the 1920s in the USA

2. Aims of the lesson By the end of this lesson you will Understand what we mean by mass production Evaluate its influence on US industry in the 1920s Understand what we mean by the cycle of prosperity Evaluate the importance of government action and credit in the boom

3. Background 1920s the USA experienced an economic boom Most but not all shared in it Lots of raw materials Helped by WW1 – America benefitted more than any other country Protection also helped the US economy

4. Mass production Easy idea – huge factories Each worker had a specific job – division on labour Products were put together on a production line – quicker Specialisation of parts Made products quicker and cheaper to make

5. Henry Ford First to use mass production techniques on his cars Model T – a car for families Tin Lizzy – nickname Each one was identical 1911 – cost $1200 1920 – cost $295 His ideas spread to other businesses

6. Effects and cycle of prosperity Helped other industries to grow – steel, glass, rubber etc More roads and petrol stations People were buying new gadgets because they cost less Cycle of prosperity – more jobs, more money, more production, cheaper goods Never ending prosperity.

7. Government policy Republican government helped the boom Laisses faire – non intervention in industry No controls on businesses Lower taxes on wages and profits Gave people more money to spend Hire purchase – buy now, pay later Mail order and advertising – put pressure on people to buy

8. Confidence In the 1920s people began to feel more confident about the future Encouraged people to spend their money buying shares Could be done using credit – buying on the margin Share prices went up year after year Seemed like the good times were here to stay