Chapter 10 Section 2 – A Growing Economy
(p. 368-375)
MAIN IDEAS
New Industries
(p. 368-372)
NOTES
1.) _________________________________________________________________________________________
 Model T = 1913

“Tin Lizzie” or “Flivver”
a.) _____________________________________________________________________________________
b.) _____________________________________________________________________________________

Large-scale manufacturing done with machinery, increased supply and reduced costs

Divided tasks and cut unnecessary motion to a minimum

lowered the cost

increased sells
c.) _____________________________________________________________________________________
 1925 survey in Muncie, IN = 21 out of 26 families who owned cars did not have bathtubs with running water
 “You can’t ride to town in a bathtub.” – farm wife
2.) _________________________________________________________________________________________
a.) ________________________________________________________________________ = Dec. 17, 1903

Kitty Hawk, NC = Orville made the first crewed, powered flight
b.) _____________________________________________________________________________________
c.) _____________________________________________________________________________________

1918 = first regular airmail service between Washington DC and New York

1925 = Kelly Act = allowed postal officials to contract private airplane operators to carry mail

1926 = Air Commerce Act = provided federal aid for building airports
d.) 1927 = _______________________________________________________________________________
________________________________________________________________________________________

Showed the possibility of commercial aviation
 1928 = 48 airlines served 355 US cities
3.) _________________________________________________________________________________________
 1926 = NBC = National Broadcasting Company
 1928 = CBS = Columbia Broadcasting System
a.) _____________________________________________________________________________________
b.) _____________________________________________________________________________________
c.) _____________________________________________________________________________________
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Chapter 10 Section 2 – A Growing Economy
(p. 368-375)
The Consumer Society
(p. 368 & 372-373)
1.) _________________________________________________________________________________________
2.) _________________________________________________________________________________________
a.) _____________________________________________________________________________________
 Higher wages and shorter workdays resulted in consumers buying more
3.) _________________________________________________________________________________________
 New goods: electric razors, facial tissues, frozen foods, home hair color
 Cleaning products = Indoor plumbing led to increased concern for hygiene and cleaning
 Fashion and youth = Mouthwash, deodorants, cosmetics and perfumes
 New appliances saved time and labor = Electric irons, vacuum cleaners, washing machines, and refrigerators
4.) _________________________________________________________________________________________
a.) _____________________________________________________________________________________
b.) _____________________________________________________________________________________
5.) _________________________________________________________________________________________
a.) _____________________________________________________________________________________
 used to buy appliances, radio and automobiles
Welfare Capitalism
(p. 374)
1.) _________________________________________________________________________________________
 Companies allowed workers to buy stock, share in profits and receive medical care and pensions
 benefits helped to cover basic needs and workers had more money to spend to help improve their quality of
life
 minorities did not share in the economic boom and better work conditions
2.) _________________________________________________________________________________________
3.) _________________________________________________________________________________________
 a workplace where employees were not required to join a union
The Farm Crisis
(p. 375)
1.) _________________________________________________________________________________________
 New advances in fertilizers, seeds and machinery allowed them to produce more
 During WW I, farmers got loans to raise more crops
2.) _________________________________________________________________________________________
 After WW I , Europe started to farm more or had less money to buy US crops

1920-1921 = corn prices dropped 19%

Wheat dropped from $1.83 to $1.03

Farmers in the 1920s earned 1/3 less than other workers

“Quiet depression” in agriculture
3.) _________________________________________________________________________________________
 Fordney-McCumber Act (1922) – raised tariffs on foreign imports
4.) _________________________________________________________________________________________
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Chapter 10 Section 2 – A Growing Economy
(p. 368-375)
Helping Farmers
(p. 375)
1.) _________________________________________________________________________________________
a.) _____________________________________________________________________________________
________________________________________________________________________________________
b.) _____________________________________________________________________________________

by Senator Charles McNary (Oregon) and Representative Gilbert Haugen (Iowa)

presented plan to Congress every year from 1924 to 1928
2.) _________________________________________________________________________________________
3.) _________________________________________________________________________________________

Said it would encourage farmers to grow even more surplus
4.) _________________________________________________________________________________________
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