American History Chapter 19-2 A New Economic Era.
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Transcript of American History Chapter 19-2 A New Economic Era.
American History Chapter 19-2
A New Economic Era
Automobiles Change Industry
• Late 1800s: Cars were toys for the rich only.• Henry Ford’s Model T changed American society.
Cars Became Affordable• Ford created the 1st assembly line for autos.– Item being built moves on a conveyor belt to different
workstations.
• By 1928 Ford Co. produced a car every minute.– 22 million cars in the U.S. by 1929.– Cost dropped below $500/car.
Car Industry Continued:• Ford Motor Co. dominated in the 1920s.– Ford paid workers well but was anti-union.
• Competition grew as GM & Chrysler came out with new designs/colors.
• Car manufacturing increased the demand for other products & businesses related to autos.– Rubber, steel, glass, petrol, etc.
• Other industries went to assembly line usage.– Productivity rose by 60%: Output per unit of input.– Welfare capitalism grew: Benefits provided to workers.
• Retirement pensions and recreation programs.
Recreation Programs
American Society Changes
• City populations boomed due to increased manufacturing.– Suburbs grew as cars allowed people to be more mobile.
• Tourism increased.
The New Consumer• New products: Electric refrigerators/vacuums.• The radio becomes highly popular.– Radio unified people.
• The airplane became a choice for public transportation.• Advertising became a huge industry.– Created a demand for products.
• Consumers began using installment buying or buying on credit.
Radio
Roaring Twenties Not Prosperous For All
• Farmers struggled:– Demand decreased & crop prices plummeted.– Competition increased as Europe rebounded.– Natural disasters took a toll.
• Floods, insects, hurricanes.
– Farm foreclosures increased.
Even When Things Seem Their Worst