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Economy in 1920s (Car industry (assembly line (1913 Ford produced the…
Economy in 1920s
Car industry
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workforce
Ford encouraged his workers but they found the assembly line boring so in 1914 ford increased wages to $5 and reduced shift lengths.
Ford also brought down the price of cars by 1926 had dropped by $450 could use hire purchase- more accessible.
Benefits of the industry
Used a lot of resources that provided jobs for over 5 million people and made hire purchase a way of life for most americans
Enabled average americans to buy a car, promoting road building, travel, motels and resturants . 4.5 million in production by 1929
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Road building
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Breaking Laissez fair the Fede4ral Highway Cat 1921 responsibility for gov to make roads. 10,000 miles per yr by 1929- not wnough for the traffic
1936 reported 25-50% of modern roads were worn out due to the amount of traffic. But improved transportation for goods in industry
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Technological change
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Conveyer belts and mass production was introduced to more industry's it bikes improving productivity
Plastic ie Bakelite helped household products and concrete mixers improved industry. New materials, new buildings ie skyscrapers
New business methods
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Cartels ( GROUPS AGREEING ON A PRICE) fixed prices and gov ignored it / US Steel so big they could dictate output and price through the industry/ Also created holding companies ( control the smaller companies and the market)
management science was created with business schools , 89 by 1928
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Stock Market boom
Value of stocks and shares rose dramatically 28-29 as well as the buying and selling with ordinary people getting involved.
Most companies shares would rise, people would lend money to buy shares and then pay back the bank after the profit was made- Buying on the margin
By 1928 there was a bull market ( time when stocks are rising) and in 1929 1.1 billion shares were sold. Over the decade 25 mil people became involved.