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American History Chapter 19-2

American History Chapter 19-2. A New Economic Era. Automobiles Change Industry. Late 1800s: Cars were toys for the rich only. Henry Ford’s Model T changed American society. Cars Became Af ford able. Ford created the 1 st assembly line for autos.

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American History Chapter 19-2

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  1. American History Chapter 19-2 A New Economic Era

  2. Automobiles Change Industry • Late 1800s: Cars were toys for the rich only. • Henry Ford’s Model T changed American society.

  3. Cars Became Affordable • Ford created the 1stassembly line for autos. • Item being built moves on a conveyor belt to different workstations. • By 1928 Ford Co. produced a car every minute. • 22 million cars in the U.S. by 1929. • Cost dropped below $500/car.

  4. Car Industry Continued: • Ford Motor Co. dominated in the 1920s. • Ford paid workers well but was anti-union. • Competition grew as GM & Chrysler came out with new designs/colors. • Car manufacturing increased the demand for other products & businesses related to autos. • Rubber, steel, glass, petrol, etc. • Other industries went to assembly line usage. • Productivity rose by 60%: Output per unit of input. • Welfare capitalism grew: Benefits provided to workers. • Retirement pensions and recreation programs.

  5. Recreation Programs

  6. American Society Changes • City populations boomed due to increased manufacturing. • Suburbs grew as cars allowed people to be more mobile. • Tourism increased.

  7. The New Consumer • New products: Electric refrigerators/vacuums. • The radio becomes highly popular. • Radio unified people. • The airplane became a choice for public transportation. • Advertising became a huge industry. • Created a demand for products. • Consumers began using installment buyingor buying on credit.

  8. Radio

  9. Roaring Twenties Not Prosperous For All • Farmers struggled: • Demand decreased & crop prices plummeted. • Competition increased as Europe rebounded. • Natural disasters took a toll. • Floods, insects, hurricanes. • Farm foreclosures increased.

  10. Even When Things Seem Their Worst

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