Growing EconomyGrowing EconomyGrowing EconomyGrowing Economy

Chapter 8 - Section 2Chapter 8 - Section 21920 - 19291920 - 1929

Chapter 8 - Section 2Chapter 8 - Section 21920 - 19291920 - 1929

OverviewOverviewOverviewOverview

During the 1920’s, mass production and the assembly line revolutionized industry and society. Wages increased and work hours decreased providing people with more time and money to spend on consumer goods. the growing automobile industry gave rise to new businesses and eased the isolation of rural properties. The airline and radio industry expanded during the 1920’s and advertising became an important tool for selling goods. While many people benefitted from the prosperous economy, farmers suffered the most from falling agricultural prices.

During the 1920’s, mass production and the assembly line revolutionized industry and society. Wages increased and work hours decreased providing people with more time and money to spend on consumer goods. the growing automobile industry gave rise to new businesses and eased the isolation of rural properties. The airline and radio industry expanded during the 1920’s and advertising became an important tool for selling goods. While many people benefitted from the prosperous economy, farmers suffered the most from falling agricultural prices.

RadioRadioRadioRadio

Radio broadcasted:

Baseball

Boxing

Drama shows

Music

News

Radio broadcasted:

Baseball

Boxing

Drama shows

Music

News

Radio and SportsRadio and SportsRadio and SportsRadio and Sports

Economic prosperity of 1920’s

People went to games, theatre, concerts, dancing

Radio broadcasted games live

Economic prosperity of 1920’s

People went to games, theatre, concerts, dancing

Radio broadcasted games live

Hollywood / Music / Radio Hollywood / Music / Radio ShowsShows

Hollywood / Music / Radio Hollywood / Music / Radio ShowsShows

Sound not possible for films

1st broadcast was of Hardings Presidential election

Radio broadcasted dramas, westerns,

Sound not possible for films

1st broadcast was of Hardings Presidential election

Radio broadcasted dramas, westerns,

Poets and WritersPoets and WritersPoets and WritersPoets and Writers

Enerst Hemmingway

A Farewell to Arms

F. Scott Fitzgerald

The Great Gatsby

Enerst Hemmingway

A Farewell to Arms

F. Scott Fitzgerald

The Great Gatsby

Rising Standard of LivingRising Standard of LivingRising Standard of LivingRising Standard of Living

1920’s - Increased living standard

People made more money on avg 22% - 25% more

U.S. Steel changed work from 12 hr day to 8 hr day

International Harvester co. started 2 week paid vacations

1920’s - Increased living standard

People made more money on avg 22% - 25% more

U.S. Steel changed work from 12 hr day to 8 hr day

International Harvester co. started 2 week paid vacations

Change in Business Change in Business Change in Business Change in Business

Many companies allowed employees to buy stock / receive benefits / medical care / profit sharing = “Welfare Capitalism”

“Open Shops” - Many companies avoided union issues by offering employees better pay & benefits

Many companies allowed employees to buy stock / receive benefits / medical care / profit sharing = “Welfare Capitalism”

“Open Shops” - Many companies avoided union issues by offering employees better pay & benefits

Charles LindberghCharles LindberghCharles LindberghCharles Lindbergh

Won Orteig Prize

Spirit of St. Louis

flew from Long Island NY to Paris France (25 yrs old)

Awarded the Medal of Honor

Won Orteig Prize

Spirit of St. Louis

flew from Long Island NY to Paris France (25 yrs old)

Awarded the Medal of Honor

New Consumer SocietyNew Consumer SocietyNew Consumer SocietyNew Consumer Society

New products in 1920’s

People concerned about hygiene - mouthwash / deodorant / cosmetics / perfumes /Household Cleaning products / vacuums cleaners washing machines / Elec. Irons / elec. shavers / refrigerators / gas stoves / cookware /

New products in 1920’s

People concerned about hygiene - mouthwash / deodorant / cosmetics / perfumes /Household Cleaning products / vacuums cleaners washing machines / Elec. Irons / elec. shavers / refrigerators / gas stoves / cookware /

Credit became readily available - buy now, pay later

75% of People bought radios and cars on installment plans

Mass advertising - consumer appeal

Commercial

Commercial

Credit became readily available - buy now, pay later

75% of People bought radios and cars on installment plans

Mass advertising - consumer appeal

Commercial

Commercial

Consumer Society - CreditConsumer Society - CreditConsumer Society - CreditConsumer Society - Credit

Radio CommercialRadio CommercialRadio CommercialRadio Commercial

OvaltineOvaltine

Rice KrispiesRice KrispiesRice KrispiesRice Krispies

Radio IndustryRadio IndustryRadio IndustryRadio Industry

1920 - Pres. Hardings election - one of the first radio addresses

NBC - 700 stations across U.S.

Sales went from $12 mil.yr 1921 to $842 mil yr. in 1929

CBS - Colombia Broadcasting system - competed with NBC

1920 - Pres. Hardings election - one of the first radio addresses

NBC - 700 stations across U.S.

Sales went from $12 mil.yr 1921 to $842 mil yr. in 1929

CBS - Colombia Broadcasting system - competed with NBC

Airline IndustryAirline IndustryAirline IndustryAirline IndustryAircraft industry began (Glenn Curtis)

Military bought planes

Post office - airmail / Flew mail from Washington to NY / Expanded to entire U.S.

Air Commerce Act - Fed Funding for airports

1928 - 48 Commercial Airlines in U.S.

Aircraft industry began (Glenn Curtis)

Military bought planes

Post office - airmail / Flew mail from Washington to NY / Expanded to entire U.S.

Air Commerce Act - Fed Funding for airports

1928 - 48 Commercial Airlines in U.S.

Auto Industry - Assembly Auto Industry - Assembly LineLine

Auto Industry - Assembly Auto Industry - Assembly LineLine

Henry “Installed” first assembly line

Increased manufacturing efficiency

produce car every 93 minutes (Prev. 12hrs)

By 1925 - 1 car off assembly line every 10 sec.

Henry “Installed” first assembly line

Increased manufacturing efficiency

produce car every 93 minutes (Prev. 12hrs)

By 1925 - 1 car off assembly line every 10 sec.

Model - TModel - TModel - TModel - T

Model T - first assembly line car

1908 - $850 / 1914 - $490 / 1917 - $360 / 1924 - $295

1920 - over 9 mil. cars

lower cost = increased sales

Ford factory workers wages = $5 day

Model T - first assembly line car

1908 - $850 / 1914 - $490 / 1917 - $360 / 1924 - $295

1920 - over 9 mil. cars

lower cost = increased sales

Ford factory workers wages = $5 day

Impact of CarsImpact of CarsImpact of CarsImpact of Cars

Opened new types of jobs and businesses

Changed “Rural Life” - most towns now in reach

People began to commute to work

Opened new types of jobs and businesses

Changed “Rural Life” - most towns now in reach

People began to commute to work

Farm CrisisFarm CrisisFarm CrisisFarm Crisis

Did not share in the prosperity of the 1920’s

Able to produce more - demand was low = low price

Called = Quiet Depression

Did not share in the prosperity of the 1920’s

Able to produce more - demand was low = low price

Called = Quiet Depression

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Questions & Ch.8 Sec.2 Questions & Ch.8 Sec.2 QuestionsQuestions

Questions???Questions???H.W. - Ch.7 Sec.2 H.W. - Ch.7 Sec.2

Questions & Ch.8 Sec.2 Questions & Ch.8 Sec.2 QuestionsQuestions