A Booming Economy
After World War I our country was in a recession. Later on, the economy got a little better and it lasted for most of the 1920’s. The nation’s gross national income grew from seventy billion in 1922 to 100 billion in 1929. Technology rapidly grew in the 1920’s, which led to industrial growth. Many people started using electricity because it was cheaper then steam power, it also cut the cost of production, and businesses could lower prices and increase profits. Many businesses adopted new ways of managing to help their businesses grow. For example, employers used scientific management, which lowered cost and increased productivity. Many businesses also used mass production techniques, such as the assembly line. In some ways businesses owners had better relationships with their employees. They created safety programs, and provided health and accident insurance. They also encouraged workers to buy stock in the company. By doing so employees worked harder as they were partial owners. By the 1920’s the demand for electric appliances increased. More than sixty percent of American households had electricity. Businesses also began advertising their products, for example, they would advertise through newspapers, TV, and radios. When people saw the ads they wanted to buy more of these new products. If they couldn’t afford it outright they were able to by in on installment, paying slowly over time.
During the 1920’s, the automobile became an important part of American life. Almost four million Americans worked for auto companies, or car related jobs. Henry Ford made the first affordable car, called the Model T. Ford paid his workers five dollars a day, which was considered a good wage. New car models started coming out, so by the 1920’s Ford had competition. The increase in cars led the building of roads and high-ways. Along these roads were businesses, such as gas stations, which helped the economy grow. People could now travel for pleasure and suburbs grew rapidly since they could easily travel to the city for work. Unfortunately, not everyone shared in this economic boom; for example, farmers, railroad workers, coal miners, and textile workers did not. The farmers had to compete with European agriculture, but they could not meet the demands of the other manufactures, so the farmers loss money and land. In addition, food product prices went down, electricity went down, and Americans started buying less cotton and more synthetic clothes, which is why textiles closed. By 1929 seventy-five percent of families had incomes below twenty-five hundred dollars, which was considered how much money you need for a comfortable lifestyle. However, the cost of living unfortunately went up more than the wages they were receiving.
During the 1920’s, the automobile became an important part of American life. Almost four million Americans worked for auto companies, or car related jobs. Henry Ford made the first affordable car, called the Model T. Ford paid his workers five dollars a day, which was considered a good wage. New car models started coming out, so by the 1920’s Ford had competition. The increase in cars led the building of roads and high-ways. Along these roads were businesses, such as gas stations, which helped the economy grow. People could now travel for pleasure and suburbs grew rapidly since they could easily travel to the city for work. Unfortunately, not everyone shared in this economic boom; for example, farmers, railroad workers, coal miners, and textile workers did not. The farmers had to compete with European agriculture, but they could not meet the demands of the other manufactures, so the farmers loss money and land. In addition, food product prices went down, electricity went down, and Americans started buying less cotton and more synthetic clothes, which is why textiles closed. By 1929 seventy-five percent of families had incomes below twenty-five hundred dollars, which was considered how much money you need for a comfortable lifestyle. However, the cost of living unfortunately went up more than the wages they were receiving.