US History Chapter 9 Section 2 A New Economic era
Main Idea New products, industries, and ways of doing business expanded the economy in the 1920s although not everyone shared in the prosperity
Reading Focus What role did the Ford Motor Company and Henry Ford play in revolutionizing American industry? How did both the auto industry and nation change during the 20s? What were some qualities of the consumer in the 1920s? What were the weaknesses of the 1920s economy?
Ford Revolutionizes Industry The 1920s was symbolized by the Model T Ford Ford seeks information from Frederick Winslow on keys to productivity Study Resulted in Assembly Line: “Unique made item” vs “Interchangeable item” Time Difference
“ I will build a motor car for the great multitude “ I will build a motor car for the great multitude. It will be large enough for the family but small enough for the individual to run and care for. It will be constructed of the best materials, by the best men to be hired, after the simplest designs that modern engineering can devise. It will be so low in price that no man making a good salary will be unable to own one” - Henry Ford, announcing his plan for the Model-T
Concepts of Assembly Lines Production system in which item being built moves along a conveyer belt to various stations. Each of Henry Ford’s workers had one of 84 specific jobs High productivity- 1920s one car / minute High productivity and higher wages of employees
Ford Motor Plant https://www.youtube.com/watch?v=qFbsDArAWj8
Effects on Industry Early 20th Century dominated by Ford ( half of cars were Fords) Other auto competitors sprouted such as GM and Chrysler High productivity- 1920s one car / minute Welfare Capitalism- Company provided benefits to workers as incentives Productivity- Increased
Crank Start https://www.youtube.com/watch?v=D6pLp4tlIw0
Industry Changes Society More Cars means more type of supporting industries: Glass, Tires, Steel, Rubber Factories Filling Stations throughout towns This sparked a growing population in the suburbs- (growing communities outside the cities)
SUBURBS
1910-1930 Detroit Akron Plant: for car manufacturing Population increase from 500K to 1.5M in 10 years 1910-1930 Akron Plants for tire manufacturing Population increase from 70K to 210K in 10 years
The New Consumer 1920s business boom fueled by new consumers Appliances were made available and Consumers purchased on Installment Buying with credit By 1920, 4 out of 10 homes had radio
Weaknesses in the Economy American farmers experienced high production during war…..but not afterwards Farmers faced low demand, competition from European imports Nature problems in farming- floods, hurricanes, and the pesky Boll Weevil
Welfare capitalism Installment buying Assembly line Suburbs Productivity Model T Radio Advertising Detroit Agricultural