Was the introduction of mass production the most important reason for the economic boom in the USA in the 1920’s? Why and what was the most important reasons for Americas economic boom almost a century ago? In this essay I will explain what the most important reason for the great economic boom in the USA during the 1920’s was and why it is. One of the main causes that was in the initial essay question was mass production. Henry Ford made cars for a living and came up with this way of easily producing cars cheaply, efficiently and on a very large scale.
Life had never seemed better for the majority of the American people. This boom developed for a number of reasons; The main reason why there was a boom in America in the 1920s was the impact of mass manufacturing & mass production. Before the war, mass manufacturing was almost unheard of - everything was individually made by hand. The American Henry Ford was the first engineer who mass manufactured cars. He was able to cut down the time to build a car from a few weeks to an hour and a half.
But though these helped the motor car without the republican policies the motor car might not of done as well. The policies for things like import tariffs increased the demand on American goods like the T-ford car. Also the idea of hire purchase made it easier for people who did not make much (companies like the T-ford only paid their works 5$ per day) compared to the price of the car ($290), to be able to afford the car. By 1929 Americans owned more than 23 million cars. The workers earnt good wages ,
During the war, the US has increased in defence spending. US navy ships rose from 600 to 1000, air force increased from 42 wing groups to 72. Which also helped the US to be equip itself to be the ‘World’s police officer’ This shows how the US military gained a lot of money from the War benefiting them in war, as they were better armed. As a result this raised more businesses to profit from more defence weapons as they were popular in demand (‘the military-industrial complex). Therefore the money raised helped the American economy and living standards which hence shows how the Americans could be seen as the successors of the War.
As well as increasing living standards, it also benefits the government, as they will see an increase in revenue collected in income tax. This will allow the government to further improve public services such as healthcare, and as the quality of healthcare increases, so does the quality of life for the population. Another benefit of economic growth is that unemployment will fall. As companies and services expand, they can output a great deal more, and therefore more labour is demanded, this means that unemployment will fall. If unemployment falls, less people will be claiming unemployment benefits and other similar pay-outs from the government, this will allow a lot of tax to be spent on other things, such as expanding public services further, which also leads to an increase in living standards.
Task 1 P1 Describe the type of business, purpose and ownership of two contrasting organisations. In the first of a series of articles Helen Lyne looks at two contrasting business organisations that operate in the North West How different can two organisations be? The first business I will look at is Ford Motor Company .Ford is an international car manufacturing company that has been in business since 1903 and was founded in America by a man called Henry Ford, initially set up in Detroit. Ford soon became dominant in Americas manufacturing industry and at the time was one of America’s largest employers. With new efficient and cheap methods of production like the ‘production line’ Ford’s products (cars) became cheaper than anyone else’s and the Ford business soon came to Europe and other places around the globe.
Taking Sides: Is Bigger Government Better Government? Introduction to American Politics, Professor J. Carter Written by Adam Raymond In “Taking Sides, Issue 3”, humanities professor Jeff Madrick surveyed the numerous government interventions in the economy since the end of World War II and concluded that they have been essential to America's growth and well being. ““Bigger government could create more jobs and more money in additional sales, and has also had a positive effect on the education system.” Madrick continues: “Better education leads to less crime, less need for special education programs, and less need for welfare.” Madrick believes that government regulation can “make economies work better...reduce corruption, monopolistic pricing...[they] can temper financial speculation which distorts the flow of capital toward inefficient uses” (p.42). “When done well, regulation keeps competition honest and free, enables customers to know and understand the products they receive, and foster new ideas” (p.43).” Madrick continues to summarize many other points, stating, “Government is needed to make some things a standard across the board”, such as public water system, railroads, and the highway system. He continues by stating the National Institute of Health has been expanded due to government backing that “accounted for high proportion of medical breakthroughs.” He further illustrates this point citing the Department of Defense, and how Federal money in the 1960s eventually helped create things like the internet.
Why did the automobile industry expand in the 1920’s? The automobile industry was perhaps the most successful industry for the USA during the 1920’s from producing one car per minute to using up 80% of America’s rubber, 75% of her plate glass, 65% of her leather and using up to seven billion gallons of petrol per year due to the production rate in the automobile industry. There are many reasons as to why the industry expanded – most of the reasons direct back to Henry Ford, creator of the model T ford, a car in which everyone could afford, followed by the creator of the assembly line, the most efficient means of production possible. Following this, there came the cycle of prosperity in which spiralled from people buying cars providing jobs for everyone in which, again, resulted in the expansion of the industry. There are many short term and long term effects, short term being the fact that the model T ford was so cheap, the increased prosperity for some in the 1920’s and the introduction of Credit.
Imports and exports rose greatly according to Source A- Imports and Exports 1700-1900. Source D shows a new railway in India 1880s if Britain didn’t take over these countries they wouldn’t have new technologies such as the railway spreading British ideas and inventions. Overall the British Empire improved Britain by spreading its values, keeping the economy going, showing off how modern and advanced Britain was, creating jobs and increasing trade, money and power. On the other hand it could be said that having an empire didn’t make Britain great because of Britons attitude. They considered non white people to be lower than them.
Since privatisation, companies such as BT, and British Airways have shown degrees of improved efficiency and higher profitability due to the competitiveness within their respective industries. It can also be noticed that vast improvements in technology have occurred due to investment in order to achieve these efficiency and profit increases. As efficiencies increase, firms are more willing to produce at a lower price, effectively shifting the supply curve to the right. This causes a reduction in the price from P1 to P2 and an increase in the equilibrium quantity from Q1 to Q2. Another possible advantage of privatisation is an increase in competition as the privatisation of state owned monopolies usually occurs at the same time as deregulation of the industry.