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A Business Boom

A Business Boom. http://www.fortworthchamber.com/images/newz/Main_street_1920.jpg. Angela Brown Chapter 11. A Consumer Economy. Consumer Economy – One that depends on a large amount of buying by consumers Consumers – individuals who use products Wages rose 28% # of millionaires doubled.

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A Business Boom

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  1. A Business Boom http://www.fortworthchamber.com/images/newz/Main_street_1920.jpg Angela Brown Chapter 11

  2. A Consumer Economy • Consumer Economy – One that depends on a large amount of buying by consumers • Consumers – individuals who use products • Wages rose 28% • # of millionaires doubled http://stlouis.missouri.org/government/heritage/citypics /Rexall%20warehouse-1920%27s.jpg

  3. Buying on Credit • Installment Plan – a system that lets customers make partial payments (installments) at set intervals over a period of time until the total debt is paid – fueled consumer economy • Up to this time borrowing money for anything except a house or land unthrifty even immoral • People bought who would not have – despite interest rates from 11 to 40% • 1929 60% cars; 70% furniture; 80% vacuum cleaners, radios, and refrigerators; 90% sewing machines, washing machines

  4. http://www.crossley-motors.org.uk/history/1920/18-50.jpg http://static.howstuffworks.com/gif/railroads-of-the-1920s-truck-400x314.jpg

  5. Electric Power • customers quadrupled • 63% people with electric power (urban) • 4% American farms (many used wind powered generators) • GE formed 1892 – take over Thomas Edison’s electric light business • Sold household electrical appliances – electric motors

  6. New Products to Buy Ford and the Automobile Ford and the “Model T” 1896 perfected first version of lightweight, gas-powered car called quadricycle(sold it to make a better one) 1903 started automobile company 1908 sold 30,000 Model T’s • Electric toasters, • ovens, • sewing machines, • coffee pots, • irons, and • vacuum cleaners, • telephones, • cosmetics

  7. http://www.edinphoto.org.uk/0_edin_t/0_edinburgh_transport_cars_vans_lorries_-_lorries.jpghttp://www.edinphoto.org.uk/0_edin_t/0_edinburgh_transport_cars_vans_lorries_-_lorries.jpg

  8. Ford’s Assembly Line • wanted to “democratize the automobile” produce sell cars at prices ordinary people could afford • assembly line – manufacturing process in which each worker does one specialized task in the construction of the final product • Made assemble line more efficient – like today • Model T made every 24 seconds http://www.johndclare.net/images/Ford%20Assembly%20line.JPG

  9. Model t • 1914 (first year of assembly line) Model T’s $490 each (1/2 price from year before) • Ford “any color as long as its black” – black paint dried faster – 1928 Model A color variety • General Motors – low priced Chevrolet – many colors • Ford – vertical consolidation – controlled businesses that make up phases of products development (raw ore, coal mines, wood, rubber, glassworks, railroads, fleet of ships, tools) https://secure.lynbrook.k12.ny.us/ msarosy/images/model-t.gif

  10. Complex Businessman • 1914 praised for $5-a-day rate for workers (double other factories) • used violence to fight unions • gave millions of Americans cars – but refused to meet tastes • 1936 slipped to 3rd place in car business • contempt for history • 1915 tried to talk Europe out of WWI • 1920 blamed Jews for world’s problems in his newspaper – sued for slander – apologized – sold paper

  11. http://memory.loc.gov/learn/lessons/01/mayhem/images/montage.jpghttp://memory.loc.gov/learn/lessons/01/mayhem/images/montage.jpg

  12. Industrial Growth • nation’s biggest single industry – automotive • garages, car dealerships, motels, campgrounds, gas stations, restaurants, truck lines • 3.7 million people employed directly or indirectly because of automobile in 1929 • $2 million spent to build/maintains roads and bridges • Power of monopolies declined even while American business was getting bigger • Publishing, motion picture, machine making, industries boomed

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