Growth and influence of consumerism including entertainment - rose + William Flashcards
(34 cards)
Growth of the automobile statistics from 1919-1941
Introduced the assembly line approach to mass production or
‘Fordism’ in 1913-14
This signifies a system in which each worker is assigned a
specific task along a conveyor belt
This effected an increase in industrial efficiency. Eg decrease in
the time taken to produce 1 car, from 12.5 hrs in 1913 to 1.5 hrs
in 1920, or from, 1 car produced every 3 mins in 1913 to 1 car
produced every 10 secs in 1920
This effected a reduction in the cost of production and an
increase in supply. Eg cost of a Model T reduced from $1,200 in
1909 to <$300 in 1928
Utilised ‘instalment buying’ to extend demand → Enabled
consumers to purchase cars through the payment of periodic
‘instalments’
Growth of the Ford Model T in 1920
Ford Model T reached production levels of 1.25 million in 1920, up from 36500 in 1908
How did the growth of the automobile industry create tensions?
The automobile industry created tensions between regional and city travelers where poorer communities resided in cities unable to afford to move out and day trips for the middle class.
How did the growth of the automobile influence the way products are sold?
The mass movement of individuals by automobiles shifted the marketing of industries who wanted to capitalise on the new movement of people in the form of billboards.
How did the automobile establish markets dependent on its success?
The autombile established new industries to support the car or at the very least reinforced existing markets. This includes the petroleum, rubber and steel works companies.
The automobile industry consumed 90% of petroleum products (mostly gasoline), 80% of rubber, 20% of steel, 75% of plate glass and 25% of machince tools in America.
Therefore, the automobile fueled job growth in the automobile sector.
How did mas consumerism influence markets?
Produced high supply for the unprecedentedly high levels of demand (mass market) in the beginning of the 1920s.
However, due to income disparity and the inflation of product
prices not matching that of the wages, this led to many
people not being able to afford the product or buy using
credit. Eg. by 1929, almost $7 billion worth of goods were
sold on credit – this included 70% of cars and 50% of major
household appliances.
Luxury goods became more common – in 1900, 12,000 pairs
of silk stockings were sold; in 1930, 300 million. By 1930,
soap as a grocery item was second only to bread.
tech advancements
New products included: vacuum cleaners, dishwashers, washing
machines, refrigerators
New electrical appliances
For example, the price of one of Henry Ford’s Model Ts had
dropped from $950 down to $290 in 1926.
An ideology of mass consumption grew, eg. mass production and consumption of cars
(Model T Fords – during the 1920s, one million were produced each year – on October 31
1925, Ford rolled a completed car of the assembly line every 10 seconds). In 1920, there
were 8 million cars in America. By 1930, there were 23 million. The car industry contributed
13% of US manufacturing production and the jobs of over 4 million people depended on it.
When consumers could no longer consume and consumption of cars decreased, this had a
knock on effect on the economy.
Chain stores grew – from 29,000 units in 1918 to 160,000 in
1929
Because of increased wages, shorter working hours, and an
increase of 50% in disposable income from 1922 to 1928,
many Americans had the time, money and confidence to
acquire an array of new goods and services.
↳ Mass consumption fed consumerism → encouraged
companies and businesses to produce more of their
goods/services → companies grew and began to place
shares of their business on the stock market
One of the main products that became part of consumerism was the automobile which tripled in production in 1920s to 4.8 million per year
By 1929, half of all American families owned a car
The consumption (purchase) of cars fueled a market that was dependent on car sales
America was producing 85% of the world’s cars, 40% of its own manufactured goods by the end of the 1920s
Majority of Americans were working class: 1930, 75% of American homes didn’t have a washing machine and 40% had a radio.
Agriculture: Reduced demand for agricultural products followed the conclusion of WWI saw a decline in the number of farms for the first time as banks took over their lands during the 1920s as gov. Subsidies for food ended at the conclusion of WWI
Consumerism in stocks → stock exchange → prosperity for a few
By 1920, 1.5 million Americans owned stock.
By 1920, Ford produced 1.25 million cars per year
By the end of 1920s, there were 23 million cars on the road and the manufacturing of automobiles was the biggest in the USA
The popularity of Ford resulted in increases to corporate profits which was reciprocated down to employees. Ford introduced a new minimum wage of $5 per day
“The growth of the motor industry had major social and economic effects. Henry Ford, with his limited imagination, had seen the car as strengthening what he believed to be traditional American values. The family would bond together through outings, the breadwinners could go further afield to seek work, and so on. He did not foresee its use by courting couples nor did he realise family outings might take the place of church attendance”.
Road deaths at 20 000 per year by the later 1920s
