1920s A Business Boom.

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Presentation transcript:

1920s A Business Boom

Consumer Economy Massive economic growth fueled by consumers buying things…consumer spending Truer than ever before in the 1920s

Installment Plan Paying for items in installments over time (usually monthly)…credit This was NEW 60% of all cars…70% of all furniture…80% of vacuums, radios and refrigerators…90% of sewing machines and washing machines

Electric Power New appliances created a surge in demand for electricity 1913-1927 number of homes with electricity quadrupled Number of people with electric lights jumped form 16 – 63% MOSTLY IN CITIES

By 1925 only 4% of American farms had electricity Evidence of growth of the electricity industry… General Electric (GE) 1919-1929 company value from $1 billion - $2.3 billion

Automobile HENRY FORD Ford Idea – cut the price of Model T in half (from $800.00 to $390.00) Double wages of employees Assembly line – Ford did NOT invent it, but he perfected it. MODEL T

MODEL T Model T every 24 seconds in early 1920s 1907-1926 Ford built over ½ the cars produced in the world (16,750,000) ALL cars were identical…any color… Some assembled at dealer Vertical consolidation…52 hour car

MASS MEDIA Newspapers: 1920-1930 circulation increased 42% Movies: Theatres 5,000 – 22,500 1920-30 90 million people per week went to the movies at a time when the total population was only 125 million Movie making was the 4th largest industry in the USA 1927 – “Talkies” Increase of 125%

RADIO In 1919 only 20,000 homes had a radio INCREASE OF… 68,650% * In 1930… 13.5 million homes had a radio INCREASE OF… 68,650%