Today

1
Todays Questions

1. What were the governments beliefs during the
   Roaring Twenties?
2. How did Henry Fords assembly line affect
   business?
3. What did Americans spend their disposable income
   on in the Twenties?

2
The Roaring Twenties

• An Introduction

3
Calvin Coolidge

• Hands off government
• Laissez faire economic theory
• If the government left business alone, with no
  regulations, business would benefit the nation

4
Calvin Coolidge

• It wasnt the governments job to help people
  with social and economic problems
• Farmers
• New machinery helped them produce more food in
  less time
• Coolidge vetoed bill that would buy the extra food

5
Disposable Income

• National income rose by 35
• 522 to 716
• Americans had more money to spend
• Bought goods
• Did things for fun (leisure activities)

6
Henry Ford and His Model T
7
Henry Ford and His Model T

• Assembly line
• Sped up production
• Lowered cost to make
• Lowered price to buy
• 1914
• Ford cut workday from 9 to 8 hours
• Increased workers pay to 5 a day
• Effects
• Guaranteed plenty of workers for plants
• Created new customers who could afford Ford cars

8
Henry Ford and His Model T

• Produced 1 million in 1920
• Cost to consumer 335
• By the mid-1920s one every 10 seconds

9
Technology and its Effects

• Products created faster and cheaper
• Installment buying
• repaying the amount borrowed in small monthly
  payments
• Mostly only white middle class that could afford
  the new products

10
Technology and its Effects

• Petroleum and electricity widely available
• Electric vacuum cleaners
• Washers
• Sewing machines
• Toasters
• Fans