The 1920's and the Automobile Industry

The 1920's and the Automobile Industry

In the 1920s, the USA's economy was booming. People felt that they had

a right to prosperity and many had aims of owning a nice house and

car. Most people in the USA had this state of mind.

I believe that the automobile industry was extremely important in the

economic boom! In the 1890s cars were only made by skilled

blacksmiths, and were very expensive. Only about 4000 were produced

each year/ However Henry Ford changed all this. He set up the first

real 'production line', where workers only had one or two jobs to do

on a car as it passed them. A skeleton of a car went in and after each

worker had done their bit a ready car came out. This was extremely

efficient and significantly lowered the price of cars. Not only this,

but it created a vast amount of employment! In 1929 4.8 million cars

were produced. The automobile industry not only created much

employment in its own industry but it created large employment in

other industries too. For example the cars needed steel and rubber and

due to the vast amounts of cars being produced much steel and rubber

was being produced hence more employment.

The 'T-model' car was coming off the production line at one every 10

seconds at one stage! As many people were buying cars, more roads had

to be made, and this created large employment (at one point making

roads was the USA's largest employer), boosting the economy. Many

people bought cars on credit, again stimulating the economy. The

automobile industry did indeed have a major role to play in the

prosperity of the 1920s.

However there were many other new industries that were also important.

The USA had the latest technology and many new consumer goods were

being produced. Every American household was full of the latest

consumer gadgets. Hoover became a household name! These goods

skyrocketed and also stimulated other industry (i.e. of raw

materials). The USA produced coal. Agriculture became much more