Economic Boom of the 1920s

Economic Growth and the Assembly Line

• The $1920s$ saw a significant increase in the standard of living and overall economic strength.

• Henry Ford revolutionized manufacturing with the assembly line to produce the Model T cheaply and efficiently.

• Model T sales grew from over $8$ million in $1920$ to $23$ million by $1930$.

• The assembly line allowed for the mass production of goods at lower costs, enabling the average American to purchase products like automobiles.

Impact of the Automobile Industry

• Increased road construction led to the creation of Route 66, running from Chicago, Illinois, to Los Angeles, California.

• The rise of driving spurred the growth of gas stations, motels, diners, mechanics, and the rubber industry.

• Increased car ownership allowed rural residents to access cities and let workers live further from their jobs.

• The popularity of car travel caused a decline in the railroad industry.

Advancements in Aviation

• Airplanes transitioned from strictly mail-carrying services to passenger transportation by the late $1920s$.

• The Lockheed Company produced the popular Vega in $1927$.

• Pan American Airways launched the first transatlantic passenger flight.

Consumerism and the Credit System

• Americans adopted the "buy now, pay later" model through installment plans.

• By $1930$, consumer debt had doubled from $1920$ levels.

• Over half of all automobiles and $70\%$ of radios were purchased on credit during this era.

• Modern advertising techniques, including radio broadcasts and Hollywood endorsements, were used to create consumer demand for products like Listerine.

Wealth and Modern Conveniences

• Americans held $40\%$ of the world's wealth, with average annual incomes rising from $\$522$ to $\$705$ ($35\%$ increase).

• New electrical appliances, such as vacuum cleaners, washing machines, and refrigerators, reduced the time needed for housework.

• While electricity became standard in cities and suburbs, most rural areas remained without power.

Government Policy and Economic Disparities

• President Calvin Coolidge (elected $1923$) promoted low taxes, business credit, and high tariffs on imported goods to encourage private industry.

• Not all sectors prospered: textile, coal mining, and agriculture suffered.

• Farmers faced a post-WWI drop in demand and prices, leading to significant debt from land and equipment purchases.