Was Henry Ford responsible for the rise of the consumer culture in the 1920s? Consumer Economy. Rise of the Consumer Economy

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1 Was Henry Ford responsible for the rise of the consumer culture in the 1920s? Consumer Economy Individuals who purchase items or products - in other words they consume What contributed to this taking place in the 1920s? Rise of the Consumer Economy Electrical Power Distribution Power customers quadrupled between 1913 and 1927 Mainly in urban areas - why? Farms were too remote for the economical infrastructure 1

Rise of the Consumer Economy General Electric Company Formed from Thomas Edison s Electric Company Began developing and selling items such as Washing machines Vacuum cleaners Sewing machines Coffee

2 Rise of the Consumer Economy General Electric Company Formed from Thomas Edison s Electric Company Began developing and selling items such as Washing machines Vacuum cleaners Sewing machines Coffee pots Etc. Rise of the Consumer Economy Americans purchased these items on credit New way to pay for things - installment plan High interest rates 11-40% Purchased items such as: Cars - 60% Furniture - 70% Radios, Refrigerators, Vacuums - 80% Sewing and Washing Machines - 90% Henry Ford The Man and His Vision 2

3 The Nation (1909) As soon as a standard cheap car can be produced of a simple type that does not require mechanical aptitude in the operator and that may be run inexpensively there will be no limit to the automobile market Design a car for: Doctors Lawyers Businessmen Prosperous farmers Fords Goals Ford s Criteria High Quality Simplicity - masses not mechanics Absolute reliability Easy to control and operate 3

4 Cheap to Buy Expensive to Build Large number productions Slow rate of production Expensive production machines Demand for high quality by Ford Ford s Dilemma He had to change the way parts were produced Example Magneto Assembly - 29 separate parts Old way - One worker given all parts to build it Took 20 minutes Fords Idea New Way - 29 workers in a line First try 29 units in 13 minutes seven minutes five minutes Ford improved the assembly line, did not invent it 4

5 Fords Line Assembly line ran at 44 inches per minute All employees were required to assemble their portion of the vehicle as the line moved Ford s Assembly Line Chassis Assembly 5

6 Chassis Assembly Chassis Assembly Chassis Assembly 6

7 Chassis Assembly Chassis Assembly Start-Up 7

8 Body Attachment One Day s Work 8

9 Ford s Success and Problems In 1914 Ford s profit was $27 Million 300% employee turnover Raised worker pay from $2.40 to $5.00/day But You had to do things his way Wife had to stop working Kids must be in school Had to have a bank account Ford s Sociology Department Kids arrested - Ford lawyer helped Wife sick - Ford doctor helped Worker drunk - Wife received paycheck Ford felt that if he was going to pay $5.00 per day he didn t want to have problems Life at Ford Immigrants were hired in their native language Company notices printed in multiple languages Held English classes Held naturalization classes Company award for naturalized citizens Hired handicapped - Leader Hired African Americans - Leader 9

10 Advertisement in the 1920s Ford s Marketing Advertisement in the 1920s Ford s Marketing Advertisement in the 1920s Ford s Marketing 10

Ford s Marketing Advertisement in 2005 Related Industries Garages Car dealerships Motels Campgrounds Gas stations Restaurants Truck lines In 1929 US spent $2

11 Ford s Marketing Advertisement in 2005 Related Industries Garages Car dealerships Motels Campgrounds Gas stations Restaurants Truck lines In 1929 US spent $2 billion dollars to build roads New Industrial Growth Laissez-Faire policies contributed to rapid expansion of business Publishing Movies Machine making Petroleum Steel 11

12 Ford s Contribution to the Economy in the 1920s 15% of Steel Production 80% of Rubber Production 50% of Glass 65% of Leather and Upholstery 7 Billion Gallons of Gasoline Other Industries Manufacturers copied the Ford assembly line of production Increased the amount of products made Created more products faster and cheaper Increased the amount of products available to consumers Henry Ford Responsible for change in American Industry Responsible for a change in American Culture Responsible for a change in the American nation 12

13 Was Henry Ford responsible for the rise of the consumer culture in the 1920s? 13

Ch 19-2 A New Economic Era

Ch 19-2 A New Economic Era The Main Idea New products, new industries, and new ways of doing business expanded the economy in the 1920s, although t not everyone shared in the prosperity Content Statement