Industrialization, Prosperity, and Social Change

Why Study the 1920s?

Many historians argue that the United States became a modern nation during the 1920s.

Why Study the 1920s?

Traditional

Agrarian economy (mostly farming)

People spread out in rural areas

Strong sense of traditional morality and religion

Regional culture

Modern

Industrial economy (mostly manufacturing)

People concentrated in cities

Challenges to traditional morality; changes in fashion and culture

National culture

Why Study the 1920s?

Increasing prosperity is essential to explaining the changes in the United States during the 1920s.

How did the American economy change during the

1920s?

Economic Growth in the 1920s

Write in your notebook: According to this chart, how did the US economy change during the 1920s?

This chart shows that the US economy grew rapidly and steadily from 1921 to 1929.

Why Did the Economy Grow?

Fun Fact In 1929, American industry

produced almost twice as much stuff as it did in 1921

Yet the number of people employed in manufacturing stayed constant between 1919 and 1929

In your notebook: what explains this growth in output?

Why the Economy Grew

Higher productivity = amount of output per unit of input (for instance, person-hours)

Enormous growth in industrial productivity during the 1920s

Why Did Productivity Increase?

New technologyMechanization – using machines to produce goodsAssembly line

Scientific management (aka Taylorism)Focus on carefully analyzing and controlling workers’

behavior to increase productivityIncreasingly popular from 1880s to 1910s; ideas were

widely implemented by the 1920s

But not everybody gained from this…

Wages did rise during the 1920s

But corporate profits rose much more

Farmworkers didn’t gain much

How did economic growth affect life for average

Americans?

Changes in Living Standards

Increased incomeDecreased working hoursMore affordable stuffIn your notebook: What would you do if you had more

money and more free time?

Leisure Time and Luxury Goods

Americans started spending more money on luxury goods

New (or newly affordable) products

Cars

Appliances

More time for leisure activities

Sports

Movies

Radio

Consumer Culture

Date: 1920sDefinition: a culture (way of doing things) that

encourages people to buy more goods and services in order to display their social status

SignificanceStimulates economic growth by encouraging people to spend

money

Changes lifestyles by pushing people to own more luxury goods

Culture Goes National

Before the 1920s, region was very important to people’s identities and cultural experiences

The advent of mass media (movies, radio) made some shows popular across the country

National celebrities (Babe Ruth, Charlie Chaplin, Jack Dempsey) emerged

Changes in Values

Traditional

Thrift, self-denial, and saving money

Children obey their parents

Women as submissive

Traditional religion: follow the rules now, get into Heaven later

Community before the individual

Modern

Consumer culture and spending

Children assert independence

More independence for women

Declining influence of religion; focus on immediate gratification

Individual happiness comes first

The Automobile and Social Change

By 1929, half of all American families owned a car

Encouraged the growth of suburbs

Spurred tourism

Established a new sense of freedom

Let young people escape the supervision of their families

The Big Picture

The United States experienced unparalleled prosperity in the 1920sWealthier economy overall

More buying power for most workers

This prosperity led Americans to develop a national consumer cultureMore time spent on leisure activities

More money spent on luxury goods

Change in values