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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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American history chapter 19 2

American History Chapter 19-2

A New Economic Era


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.