Zusammenfassung der Ressource
US Economy (1921-1929) Cont
- Mass Production
- FORD
- New production
- Standardisation
- Just made one type of car
- Standard shape and sizes
- Less skilled workers
- Assembly Line
- Time taken rapidly decreased
- 12H to 1H33mins
- Model T
- Introduced 1914
- Division Of Labour
- Split up jobs for specific parts
- Faster assembly-More employment
- Average Wage rose by 8%
- Effects on CAR INDUSTRY
- 1908- Ford car cost $850 .
1926- Improved Ford cost $300
- 1915- 1 mil cars
1939- 28 mil cars
- In the USA
- By 1932, there were 7000 ford dealerships
- More employment
- By 1929 - 4 mil workers
depended on Car Industry
- Meant more consumers
- By 1929 - 75% of all leather,glass and rubber went to car industry
- Led to growth in roads
- About 400,000km of roads built in 1920s
- More opertunity for vacations
- Major Factor in BOOM
- Other manufacturers starting using Assembly Lines
- Normally expensive items such as fridges and radios
became available to almost anyone
- 5000 FRIDGES MADE IN 1921
- 890,000 FRIDGES MADE IN 1929
- Stock Market
- How it worked
- Buying shares in company
- Price of share went up with demand for share
- In the 1920s, new industries made so much money ,
shares continued upwards
- People started buying shares not for dividend but to sell again
- Stock Market Boom
- From 1927- it seemed like everyone was using stocks
- Heavy investments in Radio, Fridges. New consumer items
- 1926- 450.8 mil spent on trading
- By 1929- 890,000 mil spend on trading
- Price of share for radio went from
- $0.94 -March 1928
- $5.05- September 1929
- Buying on Margin
- People began to borrow money on shares
- Thinking they could pay it back once
they sold the share for more
- By autumn 1929- Banks were investing with peoples savings
- Federal Policies
- Laissez Faire attitude
- Calvin Coolidge said "Business of America is business"
- Few attempts to regulate business
- eg, Tariffs and taxes were cut
- Led to problems after war
- Low wages in rural areas/ large strikes and loss of jobs
- New Industry/ Hire purchase
- Many new industries started out using Hire Purchase
- Many people could not afford luxury good outright
- Paid over time
- No-longer unrespectable
- Became very popular
- Took mortgages out on house
- Led to Depression as they could not pay back