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Unit III A Modern Nation

• Chapter 9 Section 2
• A New Economic Era

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A New Economic Era

• The Main Idea
• New products, new industries, and new ways of
  doing business expanded the economy in the 1920s,
  although not everyone shared in the prosperity.
• Reading Focus
• What role did the Ford Motor Company and Henry
  Ford play in revolutionizing American industry?
• How did both the auto industry and the nation
  change during the 1920s?
• What were some qualities of the new consumer of
  the 1920s?
• What were some weak parts of the economy in the
  1920s?

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Henry Ford Changing the Way Americans Worked,
Played, and Traveled (0242)
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Ford Revolutionizes Industry
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Life in the Jazz Age - Automobile

• As the end of the decade neared, Ford and
  Chevrolet locked horns in a fierce pricing battle
  that continued through the Thirties. Other
  automakers, such as Cadillac, Packard, and
  Chrysler, began to have an impact on the market.
• Virtually every household in America owned an
  automobile, and it quickly became an integrated
  part of American life. Parents would drive to
  work in their automobiles. Families could visit
  friends and family who lived farther away. And
  young people found a whole new way to have fun.
  Entertainment and recreation as well as work.
• A wide variety of new industries were spawned-
  petroleum, manufacturing, road construction, etc.

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Automobile Production
Motor Vehicle Production (Thousands)
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Ford Revolutionizes Industry

• What made it possible for Fords workers to be
  able to buy cars themselves?
• Why was Henry Fords Model T such a revolutionary
  idea?
• How did the assembly line both benefit and hurt
  workers?

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The Effects on Industry

• The Ford Motor Company dominated auto making for
  15 years, but the entire industry grew when
  competitors like General Motors and Chrysler
  tried to improve on Fords formula by offering
  new designs, starting competition.
• Other industries learned from Fords ideas, using
  assembly-line techniques to make large quantities
  of goods at lower costs, raising productivity, or
  output, by 60 percent.
• The success of businesses led to welfare
  capitalism, a system in which companies provide
  benefits to employees to promote worker
  satisfaction and loyalty.
• Many companies offered company-paid pensions and
  recreation programs hoping employees would accept
  lower pay, which many did.

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Industry Changes Society
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Industry Changes Society

• How did the Auto industry and the nation change
  during the 1920s?
• What new industries developed as a result of
  automobiles?
• How did the growth of the automobile industry
  affect the American lifestyle?
• Why did Henry Ford and other automakers choose
  the Detroit, Michigan, area for their center of
  operations?

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The New Consumer
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The Radio

• Most radio historians assert that radio
  broadcasting began in 1920 with the historic
  broadcast of KDKA
• Radio became a product of the mass market
• Between 1923 and 1930, 60 percent of American
  families purchased radios. Families gathered
  around their radios for night-time entertainment
• Radio stations broadcast things like popular
  music, classical music, sporting events,
  lectures, fictional stories, newscasts, weather
  reports, market updates, and political
  commentary.
• The Federal Radio Commission was set up in 1926
  the Radio Act of 1927 organized the Federal Radio
  Commission.
• Crystal radios, like the one at left, were among
  the first radios to be used and manufactured.

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The Phonograph

• The phonograph or Victrola was developed as a
  result of Thomas Edison's work on two other
  inventions, the telegraph and the telephone.
• Uses of the Phonograph- according to Edison
• Letter writing
• dictation
• Phonographic books,
• The teaching of elocution.
• Reproduction of music.
• The "Family Record"--a registry of sayings,
  reminiscences, etc., by members of a family in
  their own voices, and of the last words of dying
  persons.
• Music-boxes and toys.
• Clocks
• The preservation of languages
• Educational purposes.
• Connection with the telephone

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Refrigerators

• Two of the first home refrigerators both appeared
  in Fort Wayne, Indiana, where, in 1911, General
  Electric company unveiled a unit invented by a
  French monk. In 1915 the first "Guardian"
  refrigerator - a predecessor of the Frigidaire -
  was assembled in a wash house in a Fort Wayne
  backyard.
• Kelvinator and Servel models were among some two
  dozen home refrigerators introduced to the U.S.
  market in 1916. In 1920 the number had increased
  to more than 200. Compressors were generally
  driven by belts attached to motors located in the
  basement or in an adjoining room.
• In 1918 Kelvinator introduced the first
  refrigerator with any type of automatic control.
  One manufacturer's 1922 model had a wooden
  cabinet, a water-cooled compressor, two ice cube
  trays and nine cubic feet of storage space. It
  cost 714. In 1923 Frigidaire introduced the
  first self-contained unit. Steel and porcelain
  cabinets began appearing in the mid-20s.

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Washing machines

• In 1922 The Maytag Company introduced a system of
  forcing water through the clothes by means of an
  agitator rather than dragging the clothes through
  the water. This system is most commonly used now.
  
• Even as early as 1875 there had been more than
  2,000 patents issued for various washing devices.
  Not every idea worked, of course. One company
  built a machine designed to wash only one item at
  a time.
• What may have been the first "laundromat" was
  opened in 1851 by a gold miner and a carpenter in
  California. Their 12-shirt machine was powered by
  10 donkeys.
• Earliest washers were hand powered by means of a
  wheel, pump handle or similar device. One, was
  driven by twisted ropes which powered the washer
  by "unwinding" somewhat like the use of a rubber
  band to power model airplanes. One washer
  contained rollers which were pushed back and
  forth by hand to squeeze out dirt. Several
  featured "stomping" devices and one - called a
  "Locamotive" was moved rapidly back and forth on
  a track washing the clothes by slamming them
  against the walls of the tub.

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Vacuum Cleaners

• In 1907 an American named James Murray Spangler,
  who was working as a cleaner, Designed the first
  small electric cleaner. he sold the patent to a
  harness maker named Hoover. By the 1920's Bothe
  started to produce his own range of electric
  cleaners under the Goblin name. He had 2500 door
  to door sales representative's in England selling
  mainly under hire purchase. Both the Hoover and
  the Goblin range were very successful and are
  still operating today selling machines that have
  not changed much in basic design since their
  first prototype.
• In 1908 Hoover introduced the Model O vacuum, the
  first to use both a cloth filter bag and cleaning
  attachments. The machine weighed only 40 lbs.
• Hoover developed positive agitation in 1926, and
  this greatly increased the dirt removal
  efficiency of the vacuum. The Model 700 featured
  a rigid beater bar which was used in combination
  with the brush on the agitator to dislodge dirt
  from the carpet.

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The New Consumer

• What were some of the qualities of the new
  consumer of the 1920s?
• How did advertising change the American
  marketplace?
• How was the public hurt and helped by
  advertisements?
• Do you think Americans would have bought as many
  appliances if they had not been advertised?

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New Ways To Pay

• In the early 1900s, most Americans paid for items
  in full when they bought them, perhaps borrowing
  money for very large, important, or expensive
  items like houses, pianos, or sewing machines.
• Borrowing was not considered respectable until
  the 1920s, when installment buying, or paying for
  an item over time in small payments, became
  popular.
• They bought on credit, which is, in effect,
  borrowing money.
• Consumers quickly took to installment buying to
  purchase new products on the market.
• By the end of the decade, 90 percent of durable
  goods, or long-lasting goods like cars and
  appliances, were bought on credit.

Advertisers encouraged the use of credit, telling
consumers they could get what they want now and
assuring them that with small payments they would
barely miss the money.
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Weaknesses in the Economy
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Weaknesses of the Economy

• What were some of the weak parts of the economy
  in the 1920s?
• Why did American agriculture suffer after World
  War I?
• How did low prices for crops affect farmers?