Boom Times

Chapter 14 Section 1

Prosperity and Productivity

US econ grew after demobilizationPro business policies, tax cuts, growth of electricity, efficiency of businesses helped to encourage economic growthBusiness growth lead to wage increasesWage increases lead to more purchasing powerConsumers begin purchasing new electrical appliances (mixers, sewing machines, radios, etc.)

Prosperity and Productivity

Businesses wanted to increase productivityScientific management: all work can be broken into smaller tasks; people then become experts at these tasks

Growth of the Auto

Cars became cheaper as a result of scientific managementHenry Ford and the Model TFirst widely affordable automobileUsed assembly line to produce them faster and more affordablyBy 1920s, 1 in 5 had a carHow might the automobile industry have a ripple effect on the country’s economy?

Increased demand for products related to automobiles

                                                

            

Changes in Work

Assembly line led to high turnoverLittle chance for advancementUpper level jobs (clerical workers, managers) required at least high school ed.Many factory workers, immigrants, Af. Am. didn’t have necessary ed

Ford’s Employees

As a result of high employee turnover:Shortened workdayRaised wages ($5 a day-double of other industries at the time)

Summary

How did Ford change the nature of work during the 1920s?

Ford’s Employees

Regulated morality and personal beh of workersOnly get $5 if you meet company standards at work and homeCommittee set up to check out employees

No alcohol or tobaccoHad to move out of ethnic neighborhoodsImmigrants had to learn English

YES-N0-WHY

The benefits of working at Ford outweighed the negative working conditions.

Land of AutosNew roads had to be built to accommodate the growth in carsBillboards, gas stations, hotels, restaurant industries grow

Freedom to move aroundGrowth of suburbsAuto-touring: using cars to view the countrysideTeens have ability to socialize more (instead of staying with their families)Lost sense of community

ProblemsPollution,Traffic jams, accidents

YES-NO-WHY

The introduction of the automobile had mostly positive effects.

Creating Consumers

More expensive cars began to be createdPeople purchased on installment plans (credit)

New GoodsStreamlined, stainless steelPlanned obsolescence-planned to go out of styleBegan buying new goods each year

Caused a lot of debt to keep up with new styles

Creating Consumers

AdvertisingGrew after WWI Used fear and hope to encourage purchasesJingles, slogans and celebrity testimonials were commonplace

Retail IndustryChain style grocery stores replace corner markets

Summary

How did tactics such as planned obsolescence and advertising help increase consumer demand?

Assignment

What impact did Henry Ford and his business practice have on life in the 1920s?If you had been a factory worker during the 1920s, would you have taken a job with Ford? Why or why not?How did the widespread use of the automobile affect family life, leisure activities, and working life for some Americans?