CHAPTER11SECTION1 by wuzhengqin

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									                           CHAPTER 11
                            SECTION 1
                       A BOOMING ECONOMY

-   IN THE DECADES THAT FOLLOWED WORLD WAR I THE AMERICAN
    ECONOMY EXPERIENCED TREMENDOUS GROWTH – USING
    REVOLUTIONARY MASS-PRODUCTION TECHNIQUES, AMERICAN
    WORKERS PRODUCED MORE GOODS IN LESS TIME THAN EVER BEFORE
    – HELPED CREAT THE MODERN CONSUMER ECONOMY

AUTOMOBILES

-   MOST OF THE GROWTH WAS CAUSED BY THE AUTOMOBILE INDUSTRY
    – HENRY FORD INTRODUCED A SERIES OF METHODS AND IDEAS THAT
    REVOLUTIONIZED PRODUCTION, WAGES, WORKING CONDITIONS AND
    DAILY LIFE

-   FORD DID NOT COME UP WITH THE IDEA OF MASS PRODUCTION – THE
    RAPID MANUFACTURE OF LARGE NUMBERS OF IDENTICAL PRODUCTS –
    HE EXPANDED IT

-   EARLY ON ONLY WEALTHY CITY DWELLERS COULD AFFORD CARS –
    AUTOMOBILES WERE SEEN AS A SYMBOL OF THE CLASS DIVISIONS IN
    THE COUNTRY

-   RANSOM OLDS INTRODUCED A LESS EXPENSIVE CAR IN 1901 – THE
    OLDSMOBILE BUT HENRY FORD INTRODUCED THE MODEL T – A
    RELIABLE CAR THAT AVERAGE AMERICANS COULD AFFORD – FIRST
    ONE SOLD FOR $850

-   FORD OPENED A PLANT IN DETROIT, MI AND HIRED SCIENTIFIC
    MANAGEMENT EXPERTS TO IMPROVE HIS MASS-PRODUCTION
    TECHNIQUES

-   SCIENTIFIC MANAGEMENT WAS A METHOD OF IMPROVING EFFICIENCY
    WHERE EXPERTS LOOKED AT EVERY STEP OF PRODUCTION TO FIND
    WAYS TO REDUCE TIME, EFFORT AND EXPENSE

-   FORD PUT HIS CARS ON A MOVING ASSEMBLY LINE – WHERE AT EACH
    STEP A WORKER ADDED SOMETHING TO CONSTRUCT THE
    AUTOMOBILE – REDUCED TIME TO MAKING THE MODEL T TO ONLY 90
    MINUTES

-   THE ASSEMBLY LINE ALLOWED FORD TO DROP THE SALES PRICE OF A
    MODEL T – BY 1927 IT ONLY COST $290
-   THE MODEL T WAS SLOW AND ONLY AVAILABLE IN BLACK – IT WAS
    THE FIRST CAR ORDINARY PEOPLE COULD AFFORD – BY 1927 56% OF
    AMERICAN FAMILIES OWNED AN AUTOMOBILE

FORD AND HIS WORKERS

-   HE MORE THAN DOUBLED THEIR WGES FROM $2.35 TO $5.00 PER DAY
    AND REDUCED THEIR WORKDAY FROM 9 TO 8 HOURS

-   FORD BECAME THE FIRST INDUSTRIALIST TO GIVE HIS WORKERS
    SATURDAY AND SUNDAY OFF – HE REALIZED THAT IF WORKERS HAD
    MORE MONEY AND MORE TIME OFF THEY MIGHT BECOME POTENTIAL
    CUSTOMERS

-   FORD ENGLISH SCHOOL*******

AUTOMOBILE CHANGES AMERICA

-   THE AUTO INDUSTRY STIMULATED GROWTH IN OTHER INDUSTRIES
    RELATING TO CAR MANUFACTURING:
    1. STEEL
    2. GLASS
    3. RUBBER
    4. ASPHALT
    5. WOOD
    6. GASOLINE
    7. INSURANCE
    8. ROAD CONSTRUCTION – BOOMED WHEN THE FEDERAL
       GVOERNMENT INRODUCED THE SYSTEM OF NUMBERED HIGHWAYS
       IN 1926

-   THE MILLIONS OF CARS ON THE ROAD LED TO THE NEED FOR OTHER
    INDUSTRIES:
    1. GAS STATIONS
    2. DINERS
    3. MOTOR HOTELS – LATER SHORTENED TO MOTELS

-   THESE CONTRIBUTED TO NATIONAL PROSPERITY

-   THE AUTOMOBILE HURT RAILROADS AND TROLLEYS – BIG DECLINE IN
    USE – PEOPLE COULD TRAVEL ON THEIR OWN TIME INSTEAD OF ON A
    SCHEDULE

-   AUTOMOBILES LED TO CHANGING RESIDENTIAL PATTERNS – PEOPLE
    COULD LIVE FURTHER AWAY FROM THEIR JOB – LED TO THE
    DEVELOPMENT OF SUBURBAN COMMUNITIES
ECONOMY

-   THE 1920 SAW A CONSUMER REVOLUTION – IN WHICH A FLOOD OF
    NEW, AFFORDABLE GOODS BECAME AVAILABLE TO THE PUBLIC –
    SUPPORTED BY ELECTRICAL POWER – ELECTRIC WASHING MACHINES,
    VACUUM CLEANERS AND IRONS – ALSO RADIO AND REFRIGERATORS

-   ADVERTISING HELPED CREATE THE CONSUMER REVOLUTION –
    MAGAZINE AND NEWSPAPER ADS OFTEN FOCUSED ON THE DESIRES
    AND FEARS OF AMERICANS MORE THAN ON WHAT PEOPLE REALLY
    NEEDED – CONVINCED PEOPLE THEY COULD BE WHAT THEY WANTED
    TO BE IF THEY WOULD BUY THE RIGHT PRODUCT

-   NEW WAYS OF BUYING HELPED TO CREATE THE CONSUMER
    REVOLUTION – PEOPLE DID NOT ALWAYS HAVE THE MONEY TO BUY
    SOMETHING COULD BUY ON CREDIT – INSTALLMENT PLAN – ALFRED P.
    SLOAN – ALLOWED PEOPLE TO MAKE A DOWN PAYMENT AND THEN
    PAY OFF THE REST IN REGULAR MONTHLY PAYMENTS

BULL MARKET

-   DURING THE 1920’S THE STOCK MARKET ENJOYED THE BULL MARKET –
    A PERIOD OF RISING STOCK PRICES – MORE PEOPLE PUT THEIR MONEY
    IN THE STOCK MARKET TO GET RICH QUICK

-   AS THE MARKET ROSE PEOPLE BEGAN BUYING ON MARGIN – A BUYER
    PAID AS LITTLE AS 10 PERCENT OF THE STOCK PRICE UPFRONT TO A
    BROKER AND THEN PAYED FOR THE REST OF THE STOCK OVER A
    PERIOD OF MONTHS – ONLY WORKED AS LONG AS PRICES REMAINED
    HIGH – HAD TO PAY OFF DEBT REGARDLESS

CITIES, SUBURBS, AND COUNTRY

-   NOT ALL PARTS OF THE NATION WERE PROSPEROUS – RURAL
    AMERICANS FACES HARD TIMES

-   PEOPLE BEGAN TO GO TO THE BIG CITIES – AFRICAN AMERICANS
    MOVED NORTH DURING THE GREAT MIGRATION – MEXICAN
    AMERICANS MOVED TO SOUTHWESTERN CITIES

-   CITIES BEGAN TO TAKE ON A DIFFERENT LOOK BECAUSE OF ALL THE
    PEOPLE MOVING THERE – BEGAN BUILDING SKYSCRAPERS – EMPIRE
    STATE BUILDING IN NEW YORK – FINISHED IN 1931 – CHRYSLER
    BUILDING 1928 – WORLD’S TALLEST BUILDING DURING THIS TIME
    (PAGE 328)
-   BECAUSE OF TRANSPORTATION SUBURBS BEGAN TO GROW – DRAINED
    PEOPLE AND RESOURCES FROM THE CITIES – SUBURBS CATERED TO
    MIDDLE AND UPPER CLASS CITIZENS – MOST TENDED TO BE
    CONSERVATIVE AND REPUBLICAN

-   AMERICA’S WEALTH WAS UNEQUALLY DISTRIBUTED – INDUSTRIAL
    WAGES ROSE SLOWLY AND FARMERS INCOMES DECLINED (PAGE 329)

								
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