US Economy (1921-1929) Cont

Jack Thorpej
Mind Map by Jack Thorpej, updated more than 1 year ago
Jack Thorpej
Created by Jack Thorpej over 4 years ago
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Mind map of US economy

Resource summary

US Economy (1921-1929) Cont
  1. Mass Production
    1. FORD
      1. New production
        1. Standardisation
          1. Just made one type of car
            1. Standard shape and sizes
              1. Less skilled workers
            2. Assembly Line
              1. Time taken rapidly decreased
                1. 12H to 1H33mins
                  1. Model T
                2. Introduced 1914
                3. Division Of Labour
                  1. Split up jobs for specific parts
                    1. Faster assembly-More employment
                      1. Average Wage rose by 8%
                4. Effects on CAR INDUSTRY
                  1. 1908- Ford car cost $850 . 1926- Improved Ford cost $300
                    1. 1915- 1 mil cars 1939- 28 mil cars
                      1. In the USA
                      2. By 1932, there were 7000 ford dealerships
                        1. More employment
                          1. By 1929 - 4 mil workers depended on Car Industry
                            1. Meant more consumers
                          2. By 1929 - 75% of all leather,glass and rubber went to car industry
                            1. Led to growth in roads
                              1. About 400,000km of roads built in 1920s
                                1. More opertunity for vacations
                          3. Major Factor in BOOM
                            1. Other manufacturers starting using Assembly Lines
                              1. Normally expensive items such as fridges and radios became available to almost anyone
                                1. 5000 FRIDGES MADE IN 1921
                                  1. 890,000 FRIDGES MADE IN 1929
                            2. Stock Market
                              1. How it worked
                                1. Buying shares in company
                                  1. Price of share went up with demand for share
                                    1. In the 1920s, new industries made so much money , shares continued upwards
                                      1. People started buying shares not for dividend but to sell again
                                2. Stock Market Boom
                                  1. From 1927- it seemed like everyone was using stocks
                                    1. Heavy investments in Radio, Fridges. New consumer items
                                      1. 1926- 450.8 mil spent on trading
                                        1. By 1929- 890,000 mil spend on trading
                                          1. Price of share for radio went from
                                            1. $0.94 -March 1928
                                              1. $5.05- September 1929
                                      2. Buying on Margin
                                        1. People began to borrow money on shares
                                          1. Thinking they could pay it back once they sold the share for more
                                            1. By autumn 1929- Banks were investing with peoples savings
                                        2. Federal Policies
                                          1. Laissez Faire attitude
                                            1. Calvin Coolidge said "Business of America is business"
                                              1. Few attempts to regulate business
                                                1. eg, Tariffs and taxes were cut
                                                2. Led to problems after war
                                                  1. Low wages in rural areas/ large strikes and loss of jobs
                                              2. New Industry/ Hire purchase
                                                1. Many new industries started out using Hire Purchase
                                                  1. Many people could not afford luxury good outright
                                                    1. Paid over time
                                                      1. No-longer unrespectable
                                                        1. Became very popular
                                                        2. Took mortgages out on house
                                                          1. Led to Depression as they could not pay back
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