This is because they had access to radios and fridges really cheaply. This cause American production to rise up to about 50% this period saw lots of production of manufactured goods. All this caused many Americans to expect a high standard of living. Employment was high so this ment people had confidence and having work combined so people had money to spend on new consumer goods, which included cars and radios enabled many people to go to places more often. New forms of entertainment such as cinema caused many Americans who had money to go and see films or go and watch a baseball match ment they had confidence to travel in there cars to watch it.
This meant that people had one specific job on the production line that they repeated over and over so they became very good at this one job, this meant that the T-ford model could be produced every 10 seconds. Henry For could then sell these cars for much a cheaper price than before because it used to take blacksmiths hours to produce a single car. This mass production also provided many people with jobs. People felt that they could buy cars at this cheaper price and therefore more cars were bought, putting more money into the economy. The car industry also helped the economic boom because more people could move near to cities without actually living in the centre of them and then drive into the cities to work and earn money.
Credit gave people time to pay off the cost of the product. Henry Ford was the first factory owner who believed that if he payed his workers more they would be happier and work would be superior, he raised their wages to $5 a day. In 1925 having industrious workers Ford was able to create an assembly line, for his Model T cars, to be built every 24 seconds. This mindless and fast repetitive work rather than the slow work by skilled craftsmen was less expensive for factory workers and allowed for an increase in affordable consumer goods. Scientific management and time-motion studies created a greater knowledge of production.
Personal savings grew, so people could afford to buy more. * In 1950, Americans bought over 6 million cars and GNP reached $318 billion. Baby boom and suburban flight helped increase consumer demand. * Abundant oil and cheap gasoline * Electronics industry boomed (TV was invented, first generation of computers). * Construction, cars, electronics all did well.
This allowed for Ford to sell over 15 million vehicles and make them a major part of the automobile market share. The introduction of the Model T began a new age in North America and transportation. This spurred the growth of roads, and jobs, and changed the way Americans traveled. Ford’s success can be credited to the implementation of the assembly line; this is what differentiated his company from any other automobile makers in America at the time, this had a great impact on the American culture. Mass production along with advancements in technology proved to be greatly Ford’s advantage; this strategy gave Ford the ability to make automobiles in large quantities and make them affordable to many.
1) What are some of the features of the Indian Market that make i tan attractive domestic market to TATA? The feature of Indian market is that it is made up of several people who are categorized as lower-class economically. Therefore the fact that Tata Motors produces low cost vehicles some retailing at less than $2,000.00 so these individuals will afford. The other fact is that India experiences a remarkable increase in population of the middle-class population with high purchasing power of low cost vehicles. This situation makes a huge market for Tata Motors.
Explain why the US economy ‘boomed’ during the 1920’s? An economic boom is the rapid growth in a country’s money making that leads to increased prosperity and wealth. The 1920’s was a time of extreme highs and lows, a time of dramatic changes in society and many new inventions. Many American industries boomed in the 1920s, with the economy doubling in size. This economic boom was based around consumer goods-luxury items that many Americans wanted to buy but didn’t really need.
For example, the current cost to own a Prius is about $32,000. I would decrease that cost to about $15,000 to make it more easily affordable. From the Model T that Henry Ford designed to the Prius that Toyota designed, there have been many improvements. From the human assembly lines to the machine assembly lines, there have been many achievements made.
They produced many new jobs with the need for new roads since the American landscape was drastically expanding. Advertisements not only made businesses prosper but gave people actual helpful information, such as the idea of keeping a much better personal hygiene being better for your health. Alternating electrical current increased energy efficiency tenfold compared to direct current since people could actually turn off their electricity. However, the Installment Plan created a country-wide idea that you could now buy what you really can’t afford and that made a lot of debt which eventually made the stock market crash leading to the Great Depression. Although there was a blotch on the great economic image of the twenties, the bigger smudge was on the cultural rifts that
Henry Ford put Winslow’s ideas to good use, creating the assembly line to mass produce his Model T car. Since production costs decreased, Ford was able to pay his workers enough so that they could afford their own Model T. Ford’s workers were the first to be paid a sufficient amount (Danzer 333). America, the land of opportunities, quickly became a melting pot of cultures due to its many prospects. People from all countries “melted” together in one big community. Immigrants, especially Jews, gathered in the United