The Roaring Twenties

1
The Roaring Twenties

• 11.5.7
• MASS PRODUCTION/ CONSUMER GOODS

2
Economic Changes in the 1920s

• Second Industrial Revolution and increased
  production
• Increase in real wages
• More leisure time
• Boom in consumer industries

3
Economic Changes in the 1920s

• Uneven distribution of income
• Economic collapse in 1929
• Changes in business organization, workplace, and
  rise of mass popular culture

4
The Second Industrial Revolution

• mass production of consumer goods (assembly
  line)
• increase industrial production, without expanding
  the work force.
• unskilled workers
• Electricity replaced steam

5
New Consumer Industries

• Automobiles 500
• Radios 75
• Washing machines 150
• Telephones
• Canning
• Chemicals
• Plastics

6
EFFECTS OF ELECTRICITY

• CONSUMER GOODS
• REFIGERATORS, VACUUMS, TOASTERS, RADIOS, RECORD P
• MADE LIFE EASIER
• MOST FARMS LACKED POWER

7
BUYING ON CREDIT

• INSTALLMENT PLAN- BUY GOODS ON CREDIT
• CONSUMER DEBT PROBLEM BEGAN

8
Changes in Corporate America
9
Advertising

• New goods flooded market
• Business would rely on advertising to sell product

10
Past Business Management

• In the 19th century Rockefeller and Carnegie
  maintained corporate control (ownership) and
  business leadership (management) in their
  enterprises.

11
The New Management Method

• THE CEO
• salaried executives who made corporate policy
  without having a controlling interest in stock

12
Characteristics of the Successful Corporation

• Integration of production and distribution
• Product diversification
• Industrial research

13
Divisions of GM

• Cadillac (Upper Class)
• Oldsmobile (Upper Middle Class)
• Buick (Middle Class)
• Pontiac (Middle Class)
• Chevrolet (Working and lower middle class)

14
Successful Companies of the 1920s

• Du Pont
• General Electric
• Westinghouse
• Ford Motor Company

15
Business Mergers

• 50 of total industrial income was concentrated
  in 100 companies
• Oligopolies became norm
• Local markets were synthesized into a national
  market

16
The Auto Age

• automobile dramatically changed U.S. society
• symbolized new emphasis of consumer industries
• 1929 automobile became single largest industry

17
Henry Fords Innovations

• Assembly line production
• Higher wages
• Shorter work day

18
Ford Model Ts

19
Effects of the Growth of the Automobile Industry

• Stimulated other industries
• road construction
• Housing boom
• suburbs

• service industries
• Tourist industries (Florida and California)
• Made daily life more convenient

20
Cities and Suburbs
21
Cities and Suburbs

• Automobiles promoted urban and suburban growth
• The 1920 census was the first in which the urban
  population exceeded rural population

22
Attractions of Cities

• Business opportunities
• Jobs
• Cultural entertainment
• Personal freedom

23
Rise of Skyscrapers

• In 1930 there were over 400 buildings in the
  U.S. over 20 stories high.

24
Rise of Sunbelt Cities

• Los Angeles
• Houston
• Miami
• San Diego

25
Rise of Suburbs

• Suburbs grew faster than inner cities
• Real estate on the fringe of cities became
  valuable
• Commercial businesses expanded into suburbs