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A Growing Economy. Chapter 10, Section 2. Henry Ford. American industrialists Founder of Ford Motor Company Sponsored development of the assembly line. Improvements for the Labor Force. Assembly line mass production Workers paid more, goods cost less Work week 5 days
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A Growing Economy Chapter 10, Section 2
Henry Ford • American industrialists • Founder of Ford Motor Company • Sponsored development of the assembly line
Improvements for the Labor Force • Assembly line mass production • Workers paid more, goods cost less • Work week 5 days • International Harvester • Two-week paid vacation • High wages to encourage loyalty
Impact of the Car • Decline in mass transportation • Greater mobility and freedom • Move to the suburbs; not cut off from city • Boom in oil business • Expansion of support industries • Rubber, plate glass, lead, steel
Consumer Goods and Credit • Better wages and working conditions • Disposable income • Leisure time • Introduction of products like: • Electric razors • Facial tissues • Frozen foods • Home hair color • Before 1920s, debt considered shameful • Attitude towards debt changed • Believed in ability to pay debts overtime • Major boom in the use of credit
Economic Limits • Prosperity did not reach everyone • African Americans lost WWI factory jobs • Native Americans isolated on reservations • Immigrants could not get well paying jobs • Most farmers or factory workers low wages • Deep south • Mostly agricultural • Economic base eroded
The Farm Crisis • Technological advances allowed more crops • Demand did not increase with output • Over production/saturated market • Low prices • Machinery still costly
Ties to War • Government urged for greater agricultural production • Had to meet needs for European food supply • Farmers borrowed greatly • Bought land and machinery • Post-war: • Enormous European debt; little money for American farm products • Congress makes things worse
The Fordney-McCumber Act (1922) • Raised tariffs to protect American industry • American markets now had limited foreign goods • Sparked a reaction • Foreign markets now against American agricultural products • Farmers can’t sell products overseas • Market increasingly flooded
The McNary-Haugen Bill • Attempt to help farmers • Proposed every year from 1924-1928 • Government boost to farm prices • Buy up surplus crops; sell at a loss overseas • Congress passed bill twice; Coolidge vetoed both times • Did not want to encourage farmers to produce a greater surplus