Economic Boom by 5K4v9Jq8

VIEWS: 59 PAGES: 11

									                             
Economic Boom

     The US Economy GROWS!
                     A Period of Adjustment

 How did the end of WWI effect the factories?
   Jobs needed for all
   Layoffs

 Recession
   2 years

 Gross National Product
   1922 = $70 Billion
   1929 = $100 Billion
   2009 = $14 Trillion
                              Growing in the 1920s

 Technology
   Electricity (like steam, but BETTER!)
      Before WWI = 30% factories
      After WWI = 70% factories
                                 Reasons for Growth

 Scientific Management
   Hiring experts to study how goods can be produced faster
        Lower costs, increase productivity
    Assembly line
      Henry Ford’s Auto Factory

 Worker Relations
   Safety programs
   Health insurance
   Buy stock in companies
   GOAL: STOP JOINING UNIONS!
                            A CONSUMER Economy

   Electricity was LIFE CHANGING!
       How do you spend YOUR
        day?

   60% of 1920s homes had
    electricity
       Refrigerators, stoves,
        vacuum cleaners, fans,
        radios
       Increasing demand
       Lower prices (cheaper
        manufacturing)
                                   Name Brand Goods

 Car Companies
   Ford, General Motors, and Chrysler

 Grocery Stores
   Great Atlantic and Pacific Tea Company
      15,000 stores
      Problem?

 Marketing
   Advertising
   Propaganda techniques
   Newspapers, magazines, radio
                                  Buy Now, Pay Later
 What role does
   ADVERTISING play in what
   YOU buy?

 Installment Buying
      Bring a product home and
       promise to make small
       payments over time
      INTEREST!
      “A dollar down, and a
       dollar forever!”
                             Car Crazy!
 Car Culture
      Installment Buying
                                          1924 Chrysler
      Registrations jumped 8
       million  23 Million
      4 million Americans
       worked in the auto
       industry
        Detroit, Michigan

 Cheaper manufacturing =
   cheaper cars = more buyers
      Henry Ford’s Assembly line
The Assembly Line

   Henry Ford
        Model T
          Sturdy, reliable, cheap,
            one color only
        Well paid workers
          $5 per day!
          Why?
        1924 price? <$300
          Average income
          $1,300/year
                                    Others Follow

 Ever wonder why cars are
   “redesigned” every few
   years?
      Mid 1920s
        GM offered color choices
          and new options for
          comfort
      1927
        Ford Model A
           New colors, new
              options
        Impact of Cars on American Life and Industry

   Needed                       Car Culture
       New Roads                    Road Trips!
       Gas Stations                 Suburbs
       Rest Areas
                                 Left Behind
   Profits                          Farmers
       Roadside businesses            No war to keep
                                        consumption high
       Steel
                                       Competition
       Rubber
                                       Lost farms
       Glass
                                     Coal and Railroad
       oil
                                     Cost of living
                                       1929 = ¾ families living
                                         below comfort line ($2,500)

								
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