'The US economic boom of the 1920's was primarily due to the motor manufacturing industry' 

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  • 'The US economic boom of the 1920's was primarily due to the motor manufacturing industry'
    • Motor Manufacturing
      • Ford's assembly line revolutionized production
      • 12 1/2 - 1 1/2 hours
      • 10 seconds
      • Cheaper to produce, wages increased
        • $5 per day
      • Model T popular
      • No. of cars 1914-$850 1926-$296
      • 1930- 13% of US manufacturing
      • 1930- employed 4 million
      • Created business for fuel stations, mechanics and cinemas
    • Taylorism
      • Scientific Management
      • Used by Ford
        • Sociological Department- monitoring
      • Maximise Efficiency
      • Method not habit- suited to capabilities
      • 'Fair day's pay for a fair day's work'
      • motivated by money
      • Time and Motion studies- what is the best method
      • Motor Manufacturing
        • Ford's assembly line revolutionized production
        • 12 1/2 - 1 1/2 hours
        • 10 seconds
        • Cheaper to produce, wages increased
          • $5 per day
        • Model T popular
        • No. of cars 1914-$850 1926-$296
        • 1930- 13% of US manufacturing
        • 1930- employed 4 million
        • Created business for fuel stations, mechanics and cinemas
    • Government
      • Laissez-Faire (Leave to do)
        • They did not get involved
        • Business did what it wanted
      • Rise in consumerism
        • Due to less taxes
        • More money to spend
      • Tariffs
        • Protectionism
        • Fordney- McCumber 1922
          • Import tax up to 50%
        • retaliatory Tariffs
          • Trade Reduced
      • Federal Highway Act 1929
        • 10,000 miles per year
        • More people could use cars
    • Banking and Credit
      • Hire purchase- pay installments
        • 75% cars bought on credit
        • 50% household appliances
      • People could buy what was previously unaffordable
      • Buying stock for investment
        • Borrowing money to buy stock
        • Seen as how to get rich quick
    • Advertising
      • Encouraged people to spend more money
      • Catchy and appealing
      • Celebrity Endorsement
        • Red Rock Cola
          • Babe Ruth
      • Total advertising grew from $200m to $3bn
      • Radio and Cinemas became popular
        • Platforms for advertising
    • Mellon and Hoover
      • Mellon
        • Trickle down economics
        • Cut taxes 1921,1924,1926
        • Top income tax- 77% down to 24%
        • Low income tax- 4% down to 0.5%
        • Policies reduced public debt
          • $26bn down to $16bn-1930
      • Hoover
        • Promoted Aviation
          • Move forward in technology
        • 1927 Mississippi flood
          • Set up health units to work in regions that were flooded

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