An Economic Revolution <ul><li>After today you should know: </li></ul><ul><li>How the economy changed in the 1920’s </li><...
Ford Revolutionizes Industry <ul><li>First cars appeared in late 1800’s </li></ul><ul><li>Owned by the wealthy </li></ul><...
Henry Ford Studies… <ul><li>Studied manufacturing processes </li></ul><ul><li>Hired experts in scientific management </li>...
The Assembly Line <ul><li>Items move along a conveyor belt to different work stations </li></ul><ul><li>Each worker was as...
The Model T <ul><li>1917 – Model T sold for less than $500 </li></ul><ul><ul><li>Still not cheap </li></ul></ul><ul><li>By...
Competition and Productivity <ul><li>In 1920’s over half the cars on the road were Fords </li></ul><ul><li>General Motors,...
Welfare Capitalism <ul><li>Ever heard of a job with BENEFITS? </li></ul><ul><ul><li>Idea started in the 1920’s </li></ul><...
What would life be like if cars were never invented?
Industry Changes Society <ul><li>Car production boosted steel, glass, rubber, and oil industries </li></ul><ul><ul><li>Dow...
Growth in Northern Cities <ul><li>Automakers put Detroit, MI on the map </li></ul><ul><ul><li>1910 – 500,000 </li></ul></u...
Change in the Consumer <ul><li>During the war Americans sacrificed buying things for their own pleasure </li></ul><ul><li>...
New Products <ul><li>New, efficient and faster manufacturing processes helped factories produce more things and do it more...
The Radio <ul><li>The new favorite technology was the RADIO </li></ul><ul><li>By end of 1920’s - 4 in 10 homes had a radio...
The Airplane <ul><li>Commercial flights began in 1920’s </li></ul><ul><li>Travel cross country was more comfortable by tra...
Advertising <ul><li>Modern, persuasive advertising developed </li></ul><ul><li>Companies paid for ad space in newspapers, ...
Paying on Credit <ul><li>In early 1900’s people paid for items in full </li></ul><ul><li>Borrowing money was not respected...
 
The Roaring 20’s <ul><li>Boom in cars, consumer goods, radio and advertising earned the 1920’s the nickname the ROARING 20...
Trouble for Farmers <ul><li>European farmers returned to their fields </li></ul><ul><ul><li>Tons of products entered U.S. ...
Lasting Effects of WWI <ul><li>War Debt </li></ul><ul><li>European nations borrowed $10 billion from the U.S. </li></ul><u...
Lasting Effects of WWI <ul><li>Arms Race </li></ul><ul><li>Arms Race - nations competing to build more and more weapons in...
Lasting Effects of WWI <ul><li>Arms Race </li></ul><ul><li>U.S. organized the Washington Naval Conference in 1921 </li></u...
Lasting Effects of WWI <ul><li>Air Power </li></ul><ul><li>General Billy Mitchell encouraged U.S. to invest in building up...
Lasting Effects of WWI <ul><li>Treaties With Others </li></ul><ul><li>U.S. did not join League of Nations but wanted to pr...
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1920s Lecture 3

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1920s Lecture 3

  1. 1. An Economic Revolution <ul><li>After today you should know: </li></ul><ul><li>How the economy changed in the 1920’s </li></ul><ul><li>How industry changed society in the 1920’s? </li></ul><ul><li>Who struggled economically in the 1920’s? </li></ul>
  2. 2. Ford Revolutionizes Industry <ul><li>First cars appeared in late 1800’s </li></ul><ul><li>Owned by the wealthy </li></ul><ul><li>1908 Henry Ford started selling the Model T </li></ul><ul><li>Began mass producing </li></ul><ul><ul><li>Making identical cars and keeping them simple </li></ul></ul>
  3. 3. Henry Ford Studies… <ul><li>Studied manufacturing processes </li></ul><ul><li>Hired experts in scientific management </li></ul><ul><li>Adopted use of interchangeable parts, moving belts </li></ul><ul><li>Studied how workers should move to be the most efficient </li></ul>
  4. 4. The Assembly Line <ul><li>Items move along a conveyor belt to different work stations </li></ul><ul><li>Each worker was assigned to a work station </li></ul><ul><li>Their job was to complete a specific task in the manufacturing process </li></ul><ul><ul><li>Same activity all day, every day </li></ul></ul>
  5. 5. The Model T <ul><li>1917 – Model T sold for less than $500 </li></ul><ul><ul><li>Still not cheap </li></ul></ul><ul><li>By 1920, Ford could produce a car every minute </li></ul><ul><ul><li>Price went down </li></ul></ul><ul><li>Average Cost of Car in 1908 </li></ul><ul><ul><li>$850 </li></ul></ul><ul><li>Average Cost of Car in 1925 </li></ul><ul><ul><li>$525 </li></ul></ul><ul><li>Average Cost of Car today </li></ul><ul><ul><li>$27,589 </li></ul></ul>
  6. 6. Competition and Productivity <ul><li>In 1920’s over half the cars on the road were Fords </li></ul><ul><li>General Motors, Chrysler tried to improve Ford’s model </li></ul><ul><ul><li>Developed new designs </li></ul></ul><ul><ul><li>Colors </li></ul></ul><ul><li>Competition caused industry to grow </li></ul><ul><li>Ford didn’t change model until 1927 </li></ul><ul><li>Productivity rose by 60% </li></ul><ul><ul><li>Measure of output per unit of input (labor) </li></ul></ul><ul><li>Auto industry boom led to WELFARE CAPITALISM </li></ul>
  7. 7. Welfare Capitalism <ul><li>Ever heard of a job with BENEFITS? </li></ul><ul><ul><li>Idea started in the 1920’s </li></ul></ul><ul><li>A system in which a company provides benefits to employees in an effort to promote worker satisfaction and loyalty </li></ul><ul><ul><li>Paid pensions (retirement) </li></ul></ul><ul><ul><li>Recreation programs for workers </li></ul></ul><ul><li>Purpose was to encourage workers to shun unions and accept lower pay </li></ul>
  8. 8. What would life be like if cars were never invented?
  9. 9. Industry Changes Society <ul><li>Car production boosted steel, glass, rubber, and oil industries </li></ul><ul><ul><li>Down since end of WWI </li></ul></ul><ul><li>Repair shops, motels, gas stations, restaurants </li></ul><ul><li>Created tourist industry </li></ul><ul><ul><li>Made travel easy, available to everyone </li></ul></ul>
  10. 10. Growth in Northern Cities <ul><li>Automakers put Detroit, MI on the map </li></ul><ul><ul><li>1910 – 500,000 </li></ul></ul><ul><ul><li>1930 – 1,500,000 </li></ul></ul><ul><li>Other Northern cities exploded </li></ul><ul><ul><li>Akron, Ohio – rubber industry </li></ul></ul><ul><li>Suburbs grew because of access to cities by car </li></ul><ul><li>Florida </li></ul>
  11. 11. Change in the Consumer <ul><li>During the war Americans sacrificed buying things for their own pleasure </li></ul><ul><li>In 1920’s consumers got back into the habit of buying and liking it </li></ul><ul><li>New products and new entertainment exploded </li></ul>
  12. 12. New Products <ul><li>New, efficient and faster manufacturing processes helped factories produce more things and do it more quickly </li></ul><ul><li>New products: </li></ul><ul><ul><li>Refrigerators </li></ul></ul><ul><ul><li>Electrical appliances </li></ul></ul><ul><ul><li>Vacuum cleaners </li></ul></ul><ul><li>Electricity spread because of these new products </li></ul>
  13. 13. The Radio <ul><li>The new favorite technology was the RADIO </li></ul><ul><li>By end of 1920’s - 4 in 10 homes had a radio </li></ul><ul><li>Families gathered around the radio for news, dramas, comedy </li></ul><ul><li>Connected the world </li></ul>
  14. 14. The Airplane <ul><li>Commercial flights began in 1920’s </li></ul><ul><li>Travel cross country was more comfortable by train </li></ul><ul><ul><li>Planes were unpressurized and uninsulated </li></ul></ul><ul><ul><li>Couldn’t fly at night </li></ul></ul><ul><li>People flew mostly for thrills </li></ul>
  15. 15. Advertising <ul><li>Modern, persuasive advertising developed </li></ul><ul><li>Companies paid for ad space in newspapers, magazines, on radio </li></ul><ul><li>Gave wide exposure to consumer products </li></ul><ul><li>http://www.youtube.com/watch?v=cofP4NwNCQg&feature=related </li></ul>
  16. 16. Paying on Credit <ul><li>In early 1900’s people paid for items in full </li></ul><ul><li>Borrowing money was not respected </li></ul><ul><li>Installment buying introduced in 1920’s </li></ul><ul><ul><li>Making for an item over time in small payments </li></ul></ul><ul><li>People started buying on credit and loved it! </li></ul><ul><li>By end of the 1920’s, 90% of long-lasting were bought on credit </li></ul><ul><li>“ Get what you want now!” </li></ul>
  17. 18. The Roaring 20’s <ul><li>Boom in cars, consumer goods, radio and advertising earned the 1920’s the nickname the ROARING 20’s </li></ul>
  18. 19. Trouble for Farmers <ul><li>European farmers returned to their fields </li></ul><ul><ul><li>Tons of products entered U.S. markets </li></ul></ul><ul><ul><li>U.S. farm prices plunged </li></ul></ul><ul><li>19221 Fordney-McCumber Tariff only helped a little </li></ul><ul><li>Bugs destroyed cotton crops all over the South </li></ul><ul><li>1927 Mississippi River flood </li></ul><ul><ul><li>1,000 people died </li></ul></ul><ul><ul><li>Destroyed homes, farmland </li></ul></ul><ul><li>Hurricane struck Florida </li></ul><ul><ul><li>Ended boom in Florida </li></ul></ul><ul><ul><li>Florida sunk into depression </li></ul></ul>
  19. 20. Lasting Effects of WWI <ul><li>War Debt </li></ul><ul><li>European nations borrowed $10 billion from the U.S. </li></ul><ul><ul><li>Struggled to pay it back </li></ul></ul><ul><ul><li>Couldn’t earn money to pay off debts to U.S. </li></ul></ul><ul><li>Germans couldn’t pay the reparations </li></ul><ul><ul><li>U.S. started loaning money to Germany </li></ul></ul><ul><ul><li>Assumed the role of banker to all of Europe </li></ul></ul>
  20. 21. Lasting Effects of WWI <ul><li>Arms Race </li></ul><ul><li>Arms Race - nations competing to build more and more weapons in an effort to avoid one nation gaining a power advantage </li></ul><ul><ul><li>Peacetime brought pressure to reduce U.S. armed forces to save money and reduce the threat of war </li></ul></ul><ul><li>People feared that Britain and Japan were on the verge of naval arms race </li></ul>
  21. 22. Lasting Effects of WWI <ul><li>Arms Race </li></ul><ul><li>U.S. organized the Washington Naval Conference in 1921 </li></ul><ul><ul><li>Major naval powers of the world attended </li></ul></ul><ul><ul><li>Agreed to cut back on the size of navies </li></ul></ul><ul><ul><li>Led to an agreement on issues that threatened world peace </li></ul></ul><ul><ul><li>Considered a great success at the time </li></ul></ul>
  22. 23. Lasting Effects of WWI <ul><li>Air Power </li></ul><ul><li>General Billy Mitchell encouraged U.S. to invest in building up its air power </li></ul><ul><ul><li>Conducted tests to prove air power is better than naval power </li></ul></ul><ul><li>People were not convinced </li></ul>
  23. 24. Lasting Effects of WWI <ul><li>Treaties With Others </li></ul><ul><li>U.S. did not join League of Nations but wanted to prevent another war </li></ul><ul><li>France proposed a treaty between U.S. and France, but U.S. suggested a bigger plan </li></ul><ul><li>KELLOGG-BRIAN PACT - said countries would condemn war as solution for international problems </li></ul><ul><ul><li>60 nations involved </li></ul></ul><ul><ul><li>But a countries word was the only enforcement </li></ul></ul>

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