The Mass-Consumption Economy
- In the '20s the economy sprinted out of its war harness under the expansionist policies of Treasury Secretary Andrew Mellon.
- Oil-powered machines, including the assembly line dramatically increased the productivity of the working class.
- Supplying electric power for new machines and the automobile industry both became huge businesses.
- By 1930, there were around 30 million cars in America, and manufacturers became more concerned with consumption than production, which led to the birth of advertising.
- Bruce Barton, a master advertiser, published The Man Nobody Knows, which told how Jesus Christ was the greatest adman of all; he even cited how he turned 12 men from the bottom ranks of business into an organization that conquered the world.
- Sports also became big business, with stars like Babe Ruth, and Jack Dempsey becoming more popular than statesmen.
- Buying on credit also became popular, with the thought of owning things before buying them sending Americans into a frenzy, however prosperity soon acquired an overhanging cloud of debt, and the economy became vulnerable to any disruptions of credit.
Putting America on Rubber Tires
- Thanks to the automobile, a new industiral revolution roared through America, and changed the lives of the people dramatically.
- Auto inventors, like Henry Ford, and Ransom Olds developed the auto industry, which by 1910 had 69 companies distributing hundreds of thousands of cars a year.
- Henry Ford, more than any other man put America on rubber tires with his cheap and rugged Model T.
- Ford created an immense empire on the cornerstone of his mechanical genius and through his economical assembly-line methods he was selling his roadster for only $260.
- By 1914, half a million Model Ts were on the road, by 1930, that number increased to 20 million, a ratio of one Model T. for every 5 Americans when the market collapsed.
More information on automobiles, and other features of the 1920's can be found on Micheal's blog. Take it away Michael! http://michaelswh2final.blogspot.com/
Tom, this was a very informative post in a nice and short easy to understand way. I really liked the part where you commented on the advertising, and how Americans were concerened with consumption instead of preduction. I guess we know now where consumer America got its start! Good job!
ReplyDeleteGood post! The 20s were really the Golden Age for many things and it would have been so cool to have been living at that timeperiod. The sports and the cars all just emerging onto the scene would have seemed like the world was changing faster than ever seemed possible. You know, boxing is making a comeback now with the economic problems, maybe we're due for some 1920s like prizefights again??
ReplyDeleteI wonder what Henry Ford would think of the automobile industry today?? It's funny to think that it all started here. Great job!
ReplyDeleteThat is a great picture of the Manassa Mauler Jack Dempsey (I love boxing if you can't tell). This was really a Golden Age for the sport not reached again until Ali entered the ring.
ReplyDeleteIt would have been so much fun to be there in the 20's with all this new technology coming out! Thanks for putting the part about Man Nobody Knows in there... made me laugh with his description of Jesus and the disciples! Great job :)
ReplyDeleteTom.
ReplyDeleteYour post is really easy to understand. The 20s seem like a crazy and fun time to live in. I never knew that the production of cars were grow so fast like it did in 1930 to 20 million cars!!! That is crazy!! I like how people thought of paying later and possesing now. Good Job.
I like the buying on credit part of your post Tom. What would America do these days without buying on credit?
ReplyDeletethank you for explaining this topic so well.. I agree with you "thanks to the automobile revolution" and to Henry Ford!
ReplyDeletegood post :)
Thanks, Tom. You've described the emergence of a consumer culture that sounds pretty familiar, much like our own world! And you provided a review of relevant specific information.
ReplyDeleteEvan and Jacob, the thought of boxing making a comeback is food for thought now isn't it?
ReplyDeleteAnother thing, America without credit cards or automobiles, I shudder just thinking about it.
ReplyDelete