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 Affordable
• Ford created the 1st assembly 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:
• 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.
Recreation Programs
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
• 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 buying or buying
on credit.
Radio
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.
Even When Things Seem Their Worst