the “roaring’ economy of the 1920’s 1927 ford model t – the automobile was the symbol of the...
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THE “ROARING’ ECONOMY OF THE 1920’S
1927 Ford Model T – the automobile was the symbol of the “new era” in American business
A Booming Economy: The 1920’s
Income increases
People purchase more goods
Companies earn higher profits
Companies expand and hire more people
“Boom Cycle”
· Henry Ford used assembly lines to produce cars.
Impact of the Car Industry
Model-T 1909 - $850
1916 - $360
1924 - $290Access Inflation calculator for today’s cost.
· The efficiency of the assembly line helped to decrease car prices.
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The following industries grew as a result of the booming car industry:
construction (roads and bridges)
steelrubber
glass
paint
oil
housing (as the suburbs grew)
* Employment and the standard of living increased.
•As World War I ended, technology focused on consumer goods. (Ex: radios, washing machines, telephones, and cars)
* An increase in wages caused an increase in buying power.
1925 RCA Radiola Super VIII
“Conspicuous Consumption”• Buying to show off – flaunt your wealth
• Name brands, expensive price tags, the first one to own…
• Keep up with “the Jones” (neighbors)!
USE YOUR TEXTBOOK
• Pgs. 693-699
• Make a list of all the many changes in business and the economy that developed throughout the 1920’s…..
“New Era” of Business
• New Products– Vitamins– Belt and bucket conveyor– Model T– Wristwatches– Canning– Cigarette lighters– Skyscrapers– Radio
• New Policies– Credit/Installment
payments– “scientific management”
• Efficiency increases
• Profits increases
• The American Plan– End “closed shop”– Yellow dog contracts– “welfare capitalism”– “Kiss Me Clubs”
• Doctrine of Wages– $5 Day (H. Ford)
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