1. US History Chapter 9 Section 2
A New Economic era

2. Main Idea
New products, industries, and ways of doing business expanded the economy in the 1920s although not everyone shared in the prosperity

3. 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?

4. 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

5. “ 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

6. 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

7. Ford Motor Plant

9. 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

11. Crank Start

12. 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)

13. SUBURBS

14. 1910-1930 Detroit Akron Plant: for car manufacturing
Population increase from 500K to 1.5M in 10 years
Akron
Plants for tire manufacturing
Population increase from 70K to 210K in 10 years

15. 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

16. 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

17. Welfare capitalism
Installment buying
Assembly line
Suburbs
Productivity
Model T
Radio
Advertising
Detroit
Agricultural