10:2 A Growing Economy

• Rise of new industries– Earnings in U.S. increased 22 percent (1923-1929)– Work hours decreased– Mass Production: large-scale manufacturing done

with machinery

10:2

• The Assembly Line– Henry Ford– Highland Park, MI– Divided operations into simple tasks and removed

unnecessary motion – Before: automobile created every 93 minutes– After: automobile created every ten seconds

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• The Model T– Proved economic concept of “elasticity”• Relationship between demand and price• Demand high = price low

– G.M. and Chrysler created as imitators– Huge growth in other industries• Glass, rubber, nickel, lead, steel

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10:2

• “Disposable income”– Money left after paying taxes and bills• Electric razor• Frozen foods• Electric iron• Washing machines• Beauty products

10:2

• Birth of the Airline Industry – Wilbur and Orville Wright – “Kitty Hawk”– December 17, 1903, Kitty Hawk, N.C.

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• Charles Lindbergh– First flight across the Atlantic (1927)

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• Radio Industry– Westinghouse Company broadcast news of

President Harding’s victory (1920)– KDKA In Pittsburgh– National Broadcast Company (NBC) (1926)

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• Consumer Credit– Americans believed debt was “shameful”– Easy credit given to Americans in 1920s– “Buy now, Pay Later”

• Mass Advertising– Convince people they need something