Examine the economic boom Evaluate the impact of

Examine the economic boom. Evaluate the impact of the auto industry. Discuss new consumer practices.

� Would you rather be required to wear a school uniform or your last Halloween costume all year? � Analyze the rise and fall of the KKK in the 1920’s. � What invention do you believe has had the most impact on American society and why? � No Quote? Sweet. Time Table � � � Bell Work – 10 min. Lecture Notes – 20 min. The Golden Twenties – 20 min.

� Prosperity and Productivity �Following the turbulent period of demobilization, the U. S. economy soared. The Gross National Product increased 30% from 19221929. With improved business came wage increases. With wage increases came consumer interest in new products. Electricity became common in the majority of American homes, doubling in production through the roaring twenties. American industry provided a variety of new electric products:

� The Automobile Industry �Henry Ford lowered the cost of their cars by implementing the assembly line. �The Model T, first developed in 1908, dropped rapidly in price as productions on the assembly line skyrocketed. �Ford’s goal was to produce a car that his employees could afford, they made five dollars a day. �By 1924 a Ford cost $290 �In 1929 more than 1 million people worked in the automobile industry. �The automobile changed American life.

� The New Consumer �While Ford pushed affordability, his competitors pushed luxury. To pull this off, installment plans were introduced. The practice of installments spread to kitchen appliances, piano’s, and sewing machines. Sound familiar? �Manufacturers quickly realized that introducing new models of what was essentially the same product could boost sales. GM introduced yearly model changes and offered trade-ins for “old” cars. The department of Labor showed that women were going into debt to buy the latest style of clothes.

�Advertising Advertising went into high demand with product competition on the rise. Spending on ads went from $500 million a year before WWI to $3 billion in 1929. Ads targeted mostly women, using psychology to play on consumers’ hopes and fears.