Creating large quantities of standardized products
Henry Ford
Created assembly line
Owner of Ford Motors
Ford's mass production
1. Went from creating 100 to 1000 cars
2. Boom cycle - more workers employed, more wages spent, more goods bought, more goods made
Model T (Tin Lizzie)
Car produced for many years, parts for one type of car required only, reduces price, more affordable
In 1911, the Model T cost nearly $800, by 1929 it cost $295 and 15 million were bought during this time
By 1929, 6 cars were produced every minute, all were black as this was quicker to produce
Laissez Faire
Rugged individualism, very few regulations so business free to do what they wanted & low taxes
Assembly line
Workers did not waste time fetching tools and equipment, instead brought to them so production was quicker
Credit
Huge increase in consumer spending and meant people could buy goods even when they did not have enough cash
Knowledge developed
Electricity
Skyscrapers
Fridges
Vacuum cleaners
Radios
American manufacturers and farmers took over European overseas market and expanded them further, replacing Germany as world's leading producer of fertiliser and chemicals
Advertisement
Attractive women in ads, attract men and females encouraged to buy cars too through magazines, newspapers, radio and cinema. This increased sales and profits
By 1929 most homes had electricity which stimulated industrial growth as electricity provided flexible and efficient form of power for factories and workshops. Use of oil doubled and gas quadrupled
Tariffs
Fordney McCumber Tariff (1922) raised important duties on goods coming to USA, encouraged Americans to buy home-produced goods. Reduction in income tax = more money to spend
Up to 25 million people involved in frenzy of share dealing in last years of the 1920s. By 1928, share prices were rising fast and the Bull Market was on the Wall Street Stock Exchange
Jazz Age
1920s known for jazz music, dance like the Charleston, and clubs like the Cotton Club
Older generation saw jazz as a corruption influence on younger people
Popular entertainment in the 1920s
Radio
Baseball
Boxing
Cinema (100 million tickets sold, first 'talkie' film made in 1927)
Hollywood films about sex
More conservative states disapproving of the new entertainment, 36 states threatened to introduce censorship legislation
Tension between rural and urban areas
People in the country believed traditional values that emphasised religion and family life were under threat from growing cities that they thought were full of atheists, drunks and criminals
Women in the 1920s
Given opportunities to do skilled factory work for the first time when USA joined the war in 1917
Domestic work made easier eg vacuum cleaners and washing machines
Wore flappers, more daring clothes, smoked and drank in public, went out without chaperones and even kissed in public
10 million women in jobs in 1929, 24% more than in 1920
1914 - 100,000 divorces, in 1929 twice as many, women unlikely to stay in unhappy marriages
Obtained a more traditional role once married
After the war, many women fired when men returned, still paid less than men, teaching forbidden for married women and many employers made it a rule to not employ
Total US farm income dropped from $22 billion in 1919 to $13 billion in 1928, with most farm prices falling by 50% in 1921
¾ of a million African American farmers became unemployed and forced off their land in the 1920s
Hundreds of rural banks collapsed, resulting in 5 times as many bankruptcies than in the 1900s and 1910s
Coalminers did not benefit as they found it difficult to compete with gas and electricity, by 1929 the average wage was $100 compared to a bricklayer in NY earning more than £300/month
Many coal miners were made redundant or had a reduction in hours worked, others accepted a reduction in their standard of living and did not look for employment elsewhere
Few railroad companies made large profits due to the rapid development of nationwide road networks and increased car ownership, reducing train usage
Prohibition
1920 - Volstead Act banned alcohol because religious groups saw it as sinful, dangerous to children, caused crime, ruined family life, made workers less efficient and land should be used to grow food not alcohol
Alcohol consumption fell by 30% in the 1920s, but increased again later on
Only 3000 prohibition agents, who were poorly paid and lacked motivation, and policemen were corrupted and took bribes to ignore them
Al Capone and other gangsters flourished, making and selling illegal alcohol, leading to gang violence
Some people stopped drinking and spent more time with families, non-alcoholic drinks became popular and some Black Americans gained fame from entertaining in Speakeasies
Bootleggers
Illegal liquor, rum from West Indies, whisky crossed river Detroit to Canada
1850-1914 'open door policy' - 40 million people emigrated to America, equating to 10% of the population in Europe. By the 1920s, there were twice as many Irish people in NY than in Dublin
'New immigrants'
Italy, Austria-Hungary, Poland, Greece and Russia in the early 1900s or late 1800s
The 'new immigrants' were often resented or feared - they were poor, did not speak English well, and had unfamiliar traditions and practices
Irish immigrants competed for the best jobs and housing, Mexicans faced racism
1917 - Literacy Tests banned entry to anyone who was unable to read a sentence of 40 words, 1921 - Immigration Quota Law limited to 350,000 each year, 1924 National Origins act limited to 150,000 per year
Red Scare
Fear of communism increased as fear of communist revolution in 1929, American Communist party set up already with 1.5 million Russians
Alexander Mitchell Palmer, in charge of law & police, was the target of a terrorist attack. He then found a communist paper next to the suicide bomber