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American History Chapter 19-2

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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 Af ford able. Ford created the 1 st assembly line for autos.

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automobiles change industry
Automobiles Change Industry
  • Late 1800s: Cars were toys for the rich only.
  • Henry Ford’s Model T changed American society.
cars became af ford able
Cars Became Affordable
  • Ford created the 1stassembly 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
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.
american society changes
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
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 buyingor buying on credit.
roaring twenties not prosperous for all
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.
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