1 / 19

The Roaring 20s: A G rowing Economy

The Roaring 20s: A G rowing Economy. Ch 8.2. Monday, March 26, 2012. Daily Goal: Understand what factors fueled the growing economy in the 1920s. Custom Made v Mass Produced. Why cars sucked before Ford…. Too expensive for the average American

ita
Download Presentation

The Roaring 20s: A G rowing Economy

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The Roaring 20s: A Growing Economy Ch 8.2

  2. Monday, March 26, 2012 • Daily Goal: Understand what factors fueled the growing economy in the 1920s.

  3. Custom Made v Mass Produced

  4. Why cars sucked before Ford… • Too expensive for the average American • Hand-built by skilled metal workers-increased prices • They took a long time to make each-increased prices • Each part was made from scratch-increased prices, made them unreliable and almost difficult to repair.

  5. ASSEMBLY LINE PRODUCTION

  6. $265 =$2742 IN 2002 DOLLARS $685.00 =$7089.00 IN 2002 DOLLARS $775.00 =$7863.00 ON 2002 DOLLARS New Industries and Prosperity •  Americans enjoyed higher wages and more leisure time than ever before. •  New technologies, such as automobiles, airplanes, and radios, led to new industries, while new methods of production increased output and lowered the prices of consumer goods.

  7. A New Way of Making Everything • Mass Production was improved by the Assembly Line introduced by Ford, which divided production into simple jobs for unskilled workers. • Reduced: costs/prices, production time.

  8. Prices tumbled! • 1908 Ford Model T (pre-assembly line) $850 • 1914 Ford Model T (assembly line) $490 • 1924 Ford Model T (improved assembly line) $295 • Cheaper cars=More buyers! More sales!

  9. Radio • Popular • Recorded music • Sporting events (baseball) • Elections + news • 1st commercial broadcast KDKA (Pitt) – Harding/ Cox election results • Growth in mass media = growth of national culture

  10. Discussion Questions • What messages do Advertisers use to sell you a product?

  11. Which sounds like a better deal? • Your shopping for a nice new flat screen TV and decide on 60 inch that costs $1200. • The store is currently offering a monthly installment plan, which reduces the cost to just $50 a month. • Which would you rather pay? $50/month? $1200 cash?

  12. Easy Credit fuels the Car Industry • Your car has just broken down. • You go to the dealer and they tell you replacing the transmission is $2000, far more than you have. • A salesmen then tells you that you can have a brand new car for a low monthly payment. • You use your repair money for a down payment and buy a new Honda Civic for $250/month.

  13. Discussion Questions • Is debt bad? • A Car loan is debt. • A Home Mortgage is debt. • Does credit (loans) encourage people to spend more? • Does credit (loans) encourage people to overspend?

  14. Mass Consumption • advertising and easy creditencouraged consumer spending and fueled a booming economy.

  15. Growing Wages • Ford paid his workers an unheard of $5/day • Used high wages to discourage workers organizing into unions.

  16. Farmers Struggle • Farmers had borrowed to increase production during WWI and when the War ended they had no way to pay back loans they had taken out • A “silent depression” began in agriculture.

More Related