Growth and influence of consumerism including entertainment - rose + William

Question 1

Growth of the automobile statistics from 1919-1941

Answer 1

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’

Question 2

Growth of the Ford Model T in 1920

Answer 2

Ford Model T reached production levels of 1.25 million in 1920, up from 36500 in 1908

Question 3

How did the growth of the automobile industry create tensions?

Answer 3

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.

Question 4

How did the growth of the automobile influence the way products are sold?

Answer 4

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.

Question 5

How did the automobile establish markets dependent on its success?

Answer 5

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.

Question 6

How did mas consumerism influence markets?

Answer 6

Produced high supply for the unprecedentedly high levels of demand (mass market) in the beginning of the 1920s.

Answer 7

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.

Answer 8

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.

Question 9

tech advancements

Answer 9

New products included: vacuum cleaners, dishwashers, washing
machines, refrigerators

Answer 10

New electrical appliances

Answer 11

For example, the price of one of Henry Ford’s Model Ts had
dropped from $950 down to $290 in 1926.

Answer 12

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.

Answer 13

Chain stores grew – from 29,000 units in 1918 to 160,000 in
1929

Answer 14

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.

Answer 15

↳ 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

Answer 16

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

Answer 17

By 1929, half of all American families owned a car
The consumption (purchase) of cars fueled a market that was dependent on car sales

Answer 18

America was producing 85% of the world’s cars, 40% of its own manufactured goods by the end of the 1920s

Answer 19

Majority of Americans were working class: 1930, 75% of American homes didn’t have a washing machine and 40% had a radio.

Answer 20

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

Answer 21

Consumerism in stocks → stock exchange → prosperity for a few
By 1920, 1.5 million Americans owned stock.

Answer 22

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

Answer 23

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”.

Answer 24

Road deaths at 20 000 per year by the later 1920s

Answer 25

The automobile industry consumed 90% petroleum products (mostly gasoline), 80% of rubber, 20% of steel, 75% of plate glass and 25% of machine tools in America. Hence consumerism in relation to automobiles had significant impacts on American society, which led to increased movement and disparity betweeb demographics, as well as the establishment of new industries and labour forces that provided new job opportunities and became dependent on the success of the automobile.

Question 26

By 1929, how much was bought by Americans on credit?

Answer 26

$7 billion worth of goods, including half of all major appliances being sold using credit. –> reliance on credit contributed to banks going bankrupt during the 1929 financial crisis.

Answer 27

From 1922 to 1930, weekly attendance had grown from 40 million to 100 million individuals respectively.

Answer 28

The mass production of radio sets led to commercial broadcasting. Following the
success of the first station, KDKA, in Pittsburgh, others followed, and by 1924
there were over 500 radio stations. By 1929, $852 million worth of radio sets were
sold, up from $60 million in 1922. Consider the effect this had on the stock market
Within a decade the radio and movies nationalised American
popular culture, projecting the same performers and the same
stereotypes in every section of the country

Answer 29

Silent films had been around for many years, but during the
1920s, Hollywood, as an industry expanded – by 1930, the
average weekly attendance at the movies was 100 million, up
from 40 million in 1922.

Question 30

1920s

Answer 30

Kurtz
Increased wealth and the purchase of new consumer goods
Average wealth increased
Average family income rose by over 10% → people could buy consumer goods: automobiles, refrigerators, radios, etc.
Industrial workers received a 25% increase in income during the 1920s.
“Corporate profits, stockholder dividends and industrial production increased substantially”
“Americans had more money to spend than ever before” opinion

Question 31

1920s

Answer 31

Henry Ford and the expansion of industry
1908 - Established the moving assembly line
Increased production: reduced manufacture of automobiles from 6 to 2hrs.
By 1925 - the moving assembly line was key to the expansion of industrial production of goods across a range of industries.
Home appliances, telephones, radios, cigarettes, etc → gave rise to new industries and expanded existing ones, contributing to the national prosperity.

Question 32

1920s

Answer 32

Technology and mass production
By 1925 - the moving assembly line was key to the expansion of industrial production of goods across a range of industries, enabled by modern technology and innovation.
1919 - Less than 7 million cars
1929 - 23 million cars
Key car companies: Ford, General motors, Chrysler → mass production techniques with increasing returns to scale.

Question 33

1920s

Answer 33

Social and technological changes
1920 → 35% homes with electric lighting
1934 → 50% homes with electric lighting

1910 → 1 telephone/14.5 people
1920 → 1 telephone/8.5 people

Question 34

Khan Academy

Answer 34

Model T’s price from $850 in 1908 to $300 in 1924, making car ownership a real possibility for a large share of the population. Soon, people could buy used Model Ts for as little as five dollars, allowing students and others with low incomes to enjoy the freedom and mobility of car ownership. By 1929, there were over 23 million automobiles on American roads.