Economic Progression In 1920 - 45 Flashcards
How important was the growth o the car industry in the economic boom
Creation of the assembly line by ford in 1913
Latter part of the 1920s figures show that the 4.5 million in 1929 were using cars
Stimulated other industry due to te demand ie steel iron and rubber
Created new services like garages, motels and petrol station car also used sales rooms
What was new business methods
By 1929 the largest rest 200 corporations possessed 20% of the nations wealth
Operated in cartels to fix pricing government turned a blind eye
Corporation like US steel were so large that they were able dictate output and pricing levels
Examples of technological change
Conveyor belt
Mass production technique
Plastic like Bakelite were décelée and used in household products
New materials mean skyscrapers
Road building
The federal highway act 1921 gave responsibility to the central government highways constructed at a rate of 10,000 mies per year by 1929
- new roads weren’t keeping up to the pace with growth of traffic - 1936 25 and 50% of the roads built 20 years ago was unfit to use
Truck registration increased from less that 1 million in 1919 to 3.5 million by 1929 when 15 billion gallons of petrol were used and 4.5 million new cars were sold
The stock market
Link. To the US prosperity
Values of stock rose steadily then increased dramatically in 1928 and 1929 - ordinary working people became involved ‘even the shoeshine boy’
People who didnt have enough money would borrow - buying on the margin
What was the number of shares traded in 1929 and 1929
In 1929 about 451 million increased to 577 million the following year
In 1928 with share prices rising fast there was a bul market in 1929 there were more than 1.1 billion shares sold up to 25 million American become involved in fenzy of share dealing
Consumer
Increase in demand was due to serval factor by 1927 2/3 of US home had electricity
In 1912 16% had electrical lit homes and by 1927 number has rien to 63%
The growth of female employment also increased due to the need for labour saving devices such as washing machine se and vacuum cleaners hire purchase schemes made it easier to buy goods on credit
Advertising
Technique that become popular during the 1920s
Hired psychologist to design campaigns that target specific groups like young women
Lucky strike encourage women to smoke in public marketed as ‘torches of freedom’
Emphasised on slogan brands named celebrities endorsement and consumer aspiration
How much was complained spending on advertising
By 1929 companies were spending 3 billion annually on advertising five time more than in 1919
