THE

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THE ROARING ECONOMY OF THE 1920S
1927 Ford Model T the automobile was the symbol
of the new era in American business
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A Booming Economy The 1920s
Income increases
People purchase more goods
Boom Cycle
Companies earn higher profits
Companies expand and hire more people
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Impact of the Car Industry
Henry Ford used assembly lines to produce cars.
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The efficiency of the assembly line helped to
decrease car prices.
Model-T 1909 - 850 1916 - 360
1924 - 290
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rubber
steel
oil
The following industries grew as a result of
the booming car industry
glass
construction (roads and bridges)
housing (as the suburbs grew)
paint
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Employment and the standard of living increased.

• As World War I ended, technology focused on
  consumer goods.
• (Ex radios, washing machines, telephones, and
  cars)

An increase in wages caused an increase in
buying power.
1925 RCA Radiola Super VIII
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Conspicuous Consumption

• Buying to show off flaunt your wealth
• Name brands, expensive price tags, the first one
  to own
• Keep up with the Jones (neighbors)!

1920'S
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USE YOUR TEXTBOOK

• Pgs. 693-699
• Make a list of all the many changes in business
  and the economy that developed throughout the
  1920s..

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New Era of Business

• New Policies
• Credit/Installment payments
• scientific management
• Efficiency increases
• Profits increases
• The American Plan
• End closed shop
• Yellow dog contracts
• welfare capitalism
• Kiss Me Clubs
• Doctrine of Wages
• 5 Day (H. Ford)

• New Products
• Vitamins
• Belt and bucket conveyor
• Model T
• Wristwatches
• Canning
• Cigarette lighters
• Skyscrapers
• Radio

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1920s Business World

• M

• Mass Production
• Mass Media
• Materialism
• Modern Corporate Bureaucracy