A Growing Economy The Rise of New Industries

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In the 1920s the automobile became an
important part of America life
The use of mass production made more
products available

Also lowered the cost of the products; changed the
American economy

Henry Ford used the assembly line to make
cars

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Divided operations into simple tasks that unskilled
workers could do
In 1913, it took workers 12 hours to build a car.

By 1925, with the assembly line, they built a car
every 10 seconds.
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Ford’s assembly line product was the Model T
Soon there was competition with General
Motors and Chrysler.
The auto industry led to the growth of other
industries; such as a plate glass, steel, and
rubber.

The automobile created an increase in small
businesses such as garages and gas stations.


Brought city people to the country and rural people
to the cities.
Allowed people to live further from work
(created the commuter culture).

With increased income, consumers were able to
buy many new products

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Electric razors, frozen foods, vacuum cleaners,
refrigerators, washing machines.
Also new industries were created for personal
care products.

Deodorant, mouthwash, cosmetics

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This did not become as prosperous as the
automobile industry
Most Americans saw them as dangerous
innovations

Some saw them as opportunities for exciting
joyrides.

In 1926, Congress passed the Air Commerce
Act


In 1927, the idea of using airplanes for
commercial use received a boost.


Provided federal aid for building airports.
Charles Lindbergh made a solo flight across the
Atlantic Ocean.
The idea became very popular among business
executives in the 1920s.

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Higher wages of the 1920s allowed Americans to
increase their buying power
Prior to the 1920s, Americans believed to be in
debt was shameful


In the 1920s they began to believe they could pay what
they owed at a later date.
They began buying furniture and cars based on
credit

Some bought at a faster rate than their income could
increase

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Many inventors faced the problem of not being
able to make the public aware of their
inventions.
As a result advertising became an important
industry in the 1920s

Unions in the 1920s were not very effective

Employers supported open shops

Workplace where workers were not required to join
a union.

Many also set up welfare-capitalism


Companies allowed workers to buy stock,
participate in profit sharing, and receive benefits
such as medical care.
These measures made unions seem
unnecessary to many workers.
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