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Reading Essentials
and Study Guide
netw rks
The Jazz Age, 1921-1929
Lesson 2 A Growing Economy
ESSENTIAL QUESTION
How was social and economic life
different in the early twentieth
century from that of the late
nineteenth century?
How has the cultural identity of the
United States changed over time?
Reading HELPDESK
Content Vocabulary
mass production the production of large quantities of goods using
machinery and often an assembly line
assembly line a production system with machines and workers arranged
so that each person performs an assigned task again and again as the
item passes before him or her
Academic Vocabulary
disposable remaining to a person after deduction of taxes
and living expenses
credit an amount or sum of money placed at a person’s disposal
by a bank on condition that it will be repaid with interest
Copyright © The McGraw-Hill Companies, Inc. Permission is granted to reproduce for classroom use.
Model T automobile built by the Ford Motor Company from 1908
until 1927
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Reading Essentials
and Study Guide Cont.
netw rks
The Jazz Age, 1921-1929
Taking Notes: Organizing
ACTIVITY As you read about the booming era of the 1920s, complete a graphic
organizer like the one below to analyze the causes of growth and prosperity.
The Rise of New Industries
GUIDING QUESTION How did new industries change Americans’ lives
in the 1920s?
By the 1920s, the automobile had become part of American life. A 1925 survey in
Muncie, Indiana, found that 21 out of 26 families who owned cars did not have
bathtubs with running water.
The automobile was just one part of Americans’ rising standard of living. Real
earnings per person went up 22 percent between 1923 and 1929. Earnings
increased as work hours decreased. In 1923 U.S. Steel cut its daily work shift from
12 hours to 8 hours. In 1926 Henry Ford cut the workweek for his employees from
six days to five. That same year farm machinery company International Harvester
started giving workers a two-week paid vacation every year.
Mass production made these changes possible. Using machinery for largescale manufacturing increased the supply of goods while lowering the costs.
Workers earned more money and the goods they bought cost less.
Ford, the Assembly Line, and the Model T
On an assembly line, manufacturing is broken down into simple tasks. In 1913
carmaker Henry Ford added the first moving assembly line to a factory in Highland
Park, Michigan. By the following year, workers were making an automobile every
93 minutes. By 1925 a Ford car was rolling off the line every 10 seconds.
Copyright © The McGraw-Hill Companies, Inc. Permission is granted to reproduce for classroom use.
IT MATTERS BECAUSE
In the 1920s, widespread ownership of automobiles, radios, and other new
products changed how Americans lived. The Coolidge administration worked for
stability in international affairs. It also encouraged business growth.
Name________________________________________ Date ________________ CLASS __________
Reading Essentials
and Study Guide Cont.
netw rks
The Jazz Age, 1921-1929
Ford’s assembly line product, the Model T, was an example of the economic
idea of elasticity, or how product demand is tied to price. The year 1908 was the
Model T’s first year. That year, the car sold for $850. By 1914 mass production
brought the price down to $490. Ford paid his workers higher wages in 1914. He
brought their wages up to $5 a day, which doubled their pay. He also reduced the
workday to eight hours. Ford took these steps to win the loyalty of workers and _
to undercut union organizers. By 1924 Model Ts were selling for $295. Ford sold
millions of cars.
Other companies began to imitate mass production methods. By the mid-1920s,
General Motors and Chrysler made cars that competed with Ford. The auto
industry led to growth in other industries such as steel, petroleum, rubber, plate
glass, nickel, and lead.
Cars changed American life. Rural families were now less isolated. People _
could now live farther from work. The “auto commuter,” who traveled to work by
car, appeared. Other forms of public transportation, such as the trolley, became
less popular.
Consumer Products
Birth of the Airline Industry
After the Wright brothers’ first successful flight in 1903, the aviation industry
developed quickly. Leading the way was American inventor Glenn Curtiss. He
invented ailerons—surfaces attached to wings that could be tilted to steer a plane.
Ailerons made it possible to build rigid wings and much larger aircraft. The
government began to support the airline industry. In 1918 the postmaster general
introduced the world’s first airmail service.
In 1925 Congress passed the Kelly Act. It gave postal officials authority to hire
private pilots. The Air Commerce Act of 1926 gave federal aid to build airports. In
1927 former airmail pilot Charles Lindbergh flew alone across the Atlantic Ocean.
His flight left no doubt about the future of air travel. By 1928, 48 airlines were
serving 355 American cities.
The Radio Industry
In 1913 American engineer Edwin Armstrong invented a special circuit. The circuit
made it practical to send the sound of voices long distances on radio waves. The
radio industry began a few years later. In November 1920 the Westinghouse
Company broadcast the news of Harding’s landslide election victory from station
KDKA in Pittsburgh. One of the first public broadcasts in history, its success
prompted Westinghouse to open other stations.
Copyright © The McGraw-Hill Companies, Inc. Permission is granted to reproduce for classroom use.
People now had more disposable income. Americans bought new products such
as electric razors, facial tissues, frozen foods, and home hair color. Mouthwash,
deodorants, cosmetics, and perfumes also became popular products.
Companies created many new products for the home. As indoor plumbing
became more common, Americans’ concern for hygiene led to the development of
many household-cleaning products. Electric irons, vacuum cleaners, washing
machines, and refrigerators were advertised as labor-savers. These products
changed the way people cleaned their homes and made their meals.
Name________________________________________ Date ________________ CLASS __________
Reading Essentials
and Study Guide Cont.
netw rks
The Jazz Age, 1921-1929
In 1926 the National Broadcasting Company (NBC) set up a network of stations.
The network broadcast daily radio programs. By 1927 there were almost 700
stations around the country. Sales of radio equipment grew from $10.6 million in
1921 to $411 million in 1929. By 1929 there were more than 12 million radios in
use across the country.
In 1928 the Columbia Broadcasting System (CBS) put together a coast-to-coast
network of stations to rival NBC. The two networks sold advertising time and hired
musicians, actors, and comedians from vaudeville, movies, and nightclubs to
appear on their shows. The first presidential campaign to use radio happened in
1928. The radio networks sold more than $1 million in advertising time to the
Republican and Democratic Parties for the 1928 campaign.
PROGRESS CHECK
Analyzing How did the new industries such as the automobile and radio change
the way people lived?
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GUIDING QUESTION How did attitudes toward credit and consumerism change
in the 1920s?
Higher wages and shorter workdays resulted in a decade-long buying spree. This
period of spending kept the economy booming. Changing their outlooks from thrift
and common sense, Americans in the 1920s embraced their new role as
consumers.
Easy Consumer Credit
One notable aspect of the economic boom was the growth of individual borrowing.
Credit was available before the 1920s. But most Americans had thought that debt
was shameful. Now attitudes toward debt started changing. People began to think
that paying debts off by making regularly scheduled payments over time was a
good idea. They felt they could buy now and then pay off their purchases in
installments. Americans bought 75 percent of their radios and 60 percent of their
automobiles on the installment plan. Some who started buying on credit spent
more than they actually made.
Mass Advertising
Otto Rohwedder made a bread slicer in 1928. But he faced a problem common to
inventions. The invention—sliced bread—was something people didn’t know they
needed. To attract consumers, manufacturers turned to advertising, another
booming industry in the 1920s.
Advertisers tied products to characteristics linked to the modern era. They used
words such as progress, convenience, leisure, success, and style. Advertisers also
took advantage of consumers’ fears about status.
Copyright © The McGraw-Hill Companies, Inc. Permission is granted to reproduce for classroom use.
The Consumer Society
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Reading Essentials
and Study Guide Cont.
netw rks
The Jazz Age, 1921-1929
The Managerial Revolution
By the early 1920s many industries had changed their business structure.
Companies were split into departments. The departments had functions such as
sales, marketing, and accounting. Companies hired managers to run these
departments. Department managers took care of business on a day-to-day basis,
giving executives and owners time to deal with other company issues. The large
number of new managerial jobs helped the middle class to grow. A growing middle
class added to the nation’s prosperity.
Uneven Prosperity
Not all Americans took part in the economic boom. For example, thousands of
African Americans had held factory jobs during World War I. But returning
servicemen had replaced them, so many African Americans were without jobs.
Native Americans were given citizenship in 1924. Citizenship improved
opportunities for Native Americans. But it could not increase job prospects for the
many who lived on reservations where there was little work. Many immigrants also
had difficulty finding work. Most were farmers or factory workers with very low
wages. In the Deep South, the traditional agricultural economy had worn away
after the war. This left many people in the Deep South out of the economic boom.
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The Farm Crisis
GUIDING QUESTION Why did farmers miss out on the prosperity of the 1920s?
American farmers did not share in the prosperity of the 1920s. On average, they
earned less than one-third of what other American workers earned. Technological
advances in fertilizers, seed varieties, and farm machinery meant that farmers
could produce more. But higher yields without an increase in demand meant
farmers got lower prices for their crops. Between 1920 and 1921, corn and _
wheat prices went down. However, the cost of better farming equipment continued
to increase. Many factors added to this depression in American agriculture. During the war,
the government had urged farmers to produce more to meet the need for food _
in Europe. Many farmers had borrowed heavily to buy new land and new
machinery. After the war, however, European farm production went up. Debtridden countries in Europe had little money to spend on American farm products.
To make matters worse, Congress passed the Fordney-McCumber Act in 1922. The
new law raised tariffs, which weakened the American market for foreign goods.
This rise in tariffs also sparked a reaction in foreign markets against buying
American agricultural products.
Copyright © The McGraw-Hill Companies, Inc. Permission is granted to reproduce for classroom use.
PROGRESS CHECK
Explaining How did changing attitudes about credit affect people's daily lives?
Name________________________________________ Date ________________ CLASS __________
Reading Essentials
and Study Guide Cont.
netw rks
Roman
Civilization
The
Jazz
Age, 1921-1929
Congress tried to pass legislation to help farmers sell their surpluses. President
Coolidge vetoed the bills. He argued that farmers would use the money they would
gain to produce even greater surpluses. Farmers stayed in recession throughout
the 1920s.
PROGRESS CHECK
Synthesizing What factors led to the growing economic crisis in farming?
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Copyright © The McGraw-Hill Companies, Inc. Permission is granted to reproduce for classroom use.