Lecture 18: The Mass Production Economy

unparalleled economic growth began in ____

1870

mass production arose in

1930

mass production encompassed the idea that

we can robotize everything and construct our production processes so we don’t need a skilled worker to advance the chain of production

mass production leads to the rise of _________ tasks

unsophisticated

mass production meant that blue collar jobs performed ________ work

alienated

large scale production requires what kind of inputs and outputs? what did this lead to?

continuous input and output flows; led firms to integrate both forward (distribution) and backward (raw material supply)

a focus on organizational capabilities led to economies of ______ and _______

scale, scope

firms with strong _______ and ________ remained global leaders for decades

research, development

oligopolistic industries, that could earn returns on their Industrial research laboratories… competed not just on price but on

technological advancements, establishing dedicated research facilities to maintain an edge over competitors

what kept oligopolies from becoming monopolies and ensuring continuous industrial growth?

competition

what helps the US pull ahead of Britain?

mass production

when does the US acquire its substantial edge over the rest of the Dover Circle Plus?

1870 to 1950

Fordism

a system of mass production characterized by assembly line techniques and standardized products, named after Henry Ford

mass production created

economies of scale

how did mass production change consumer culture?

people began expecting constant product upgrades rather than just replacements

the assembly line substituted _______ labor for ______ labor

skilled, unskilled

how was the $5 work day impactful?

reduced worker turnover and made industrial jobs more attractive

mass production emphasized producing _____ goods at low prices, targeting the _____ market instead of luxury buyers

standardized, mass

Fordism promised utopia through

technology

mass production relied on ____ fixed capita and ____ per-unit costs

high, low

how did mass production bring widespread prosperity?

by 1941, most American households had radios, cars, and refrigerators

what was government involvement like during this time?

government-backed business innovation, especially through defense spending and the military-industrial complex

how did the Cold War affect government spending?

increased government spending on defense and military technologies, as the U.S. aimed to compete with the Soviet Union and enhance national security

____ embraced mass production early, but it was ______ ______ under Alfred Sloan who refined it with flexible, multi-divisional structures

Ford, General motors

what ended up costing For market share?

refusal to upgrade the Model T

what became essential to sustaining mass consumption in a saturated market?

product differentiation

the automobile industry dominated US manufacturing: by the 1950s, the US made __% of the world’s cars

75

true or false: mass production in the US emphasized style as much as engineering

true

how did mass production affect smaller producers?

created a concentrated, rationalized capitalism that squeezed out smaller producers

mass production eventually evolved into

flexible mas production

after WWII, the Us entered a ______ age of business, marked by __% annual GDP growth

golden, 3.8

corporate American adopted a model of _______ capitalism:

managerial; hierarchical, bureaucratic, and technocratic

who dominated post-WWII corporate America?

“organization men”

how were women and minorities affected in corporate America?

women were largely excluded from management roles, leading to civil rights and gender equality struggles

firms claimed to value ______ but actual practices reinforced elite _______

meritocracy, homogeneity

how did Toyota’s production system exemplify the next step beyond mass production?

they blended decentralization with efficiency

what exposed mass production’s relative fragility?

the 1970 crises— oil shocks, stagflation, and deindustrialization