IV. Prosperity and American Business

• A. The business cycle – the boom and bust cycles that our economy goes through for various reasons.

B. Three Revolutions in Business

• 1. Scientific Management – hiring individuals to analyze the production process

• - Middle manager, white collar workers

2. Advertising and Marketing

• - Convincing Americans into buying what they want not what they need.

• - Advertising becomes a major part of a business budget.

• - Unfortunately much of this consumption is going to be bought on credit.

3. Growth of the Automobile

Henry Ford1863-1947From 1908 to 1927more than half ofthe cars sold in theU.S. were Ford’s.

He built his firstsuccessful gasolineengine in 1893 andfirst automobile in1896

- Henry Ford’s goal – create a cheap form of transportation – Model T

The Ford assembly line

-Ford’s key invention was the assembly line where conveyors brought parts to workers.

- Pace of work was now set by machines

Effects of the Assembly Line

• #1- cut costs: in 1907 a car cost $2,100 by 1924 $290

• #2- Greater profits due to mass production.

• #3- Pays labor a wage of $5 a day compared with $3.

• #4- Monotonous Work – Boring - unskilled labor

Society in the 1920’s

To lower the price, Ford and his executives tried new ways to reduce production costs. For example, the company created an assembly line method in which conveyor belts brought automobile parts to workers. Each worker performed a particular task, such as adding or tightening a part. This system helped reduce the assembly time of a Ford automobile from about 121/2 worker-hours to about 11/2 worker-hours.Ford Motor Company began to produce its own parts instead of buying them from independent suppliers at a higher price. Ford also shipped automobile parts, rather than assembled automobiles, to market areas, where assembly plants put the parts together. Parts cost less to ship than whole automobiles did. In addition, the company began to make its own glass and steel.

Effects of the Automobile

• #5 - Increased investment in related industries. From raw materials to service stations.

• #6- Exponential Growth of the Suburbs

• #7- Driving becomes a leisure activity.

V. Rise of Organized Crime

• A. Definition• 1. Groups of individuals who

fight to gain control over the illegal but highly profitable trade in liquor.

• 2. They must first establish the source of bootlegged booze, secure their customers, fight over their territories and eliminate their competition.

Organized Crime• 3. Al Capone of

Chicago becomes the model of success in bootlegging.

• To be profitable in this new underworld you need a few things

• - Establish the fine art of intimidation.

• - Have police and judges in your pocket.

• - A good body guard.

Organized CrimeDion O’Bannion

Johnny Torrio

Bugs Moran

Al Capone

In 1924, O'Bannion was killed by Johnny Torrio's men and Moran became second in command behind Earl Weiss. On January 25, 1925 Weiss and Moran tried to kill Johnny Torrio, but just before Moran could kill him execution-style, Moran's gun misfired and, lacking any further ammo, a furious Moran had to back down. The now-terrified Torrio decided to retire and handed his operation over to Al Capone.

Earl Weiss

Organized Crime

4. Eliot Ness – U.S. treasuryAgent that brings Capone tojustice on tax evasion charges.

Al Capone – Mug shot after being Brought in on tax evasion.

Organized Crime

Louis Clementi (left), a Capone gunman,and friend Philip Mangano.

Phil D'Andrea, Capone's bodyguard and constant companion. He was caught trying to bring a gun into the courtroom during Capone's trial.

Organized Crime

Chicago Tribune headline after Capone's conviction on October 17, 1931. The trial was covered in magazines and newspapers all over the country.

5. As the violence becomes more intense serious talk of repeal of the 18th Amendment begin. The

21st amendment will be passed in 1933.

Bodies of St. Valentine's Day Massacre victims being removed from the garage at 2122 North Clark Street where they were shot.

The St. Valentine's Day Massacre is the name given to the shooting of seven people as part of a conflict between criminal gangs in Chicago on February 14, 1929.

VI. Standard of Living

• A. Definition• 1. The necessities

and luxuries a group enjoys in a given historical period.

• 2. Standard of Living and incomes increased for many people in the 1920’s.

Employment figures 1920-1940

B. Those left out of the prosperity1. Farmers – efficiency leads to lower crop prices. A quietdepression has alreadyemerged in farming.

2. Coal Mining – as new sources of fuel present themselves, Theneed for miners lessens.

Social Issues 1920’s3. Klan membership reaches its height in the 1927. The Klan sees

opportunity to zone in on America’s fears of foreign influence.Besides African Americans, those of the Jewish faith and recent

immigrants were terrorized.

C. A clash of cultures

• 1. A new morality versus traditional values.

• 2. The new morality glorified youth and personal freedom.

• 3. This frightened fundamentalists who felt the country was losing its traditional values.

Social Issues 1920’s

4. This growing divide is illustrated in the Scopes “monkey” trial which tested the teaching of evolution in public classrooms.

Scopes Trial

• Teacher John Scopes was arrested after violating the Butler Act in Tennessee that stated - teaching any theory that goes against the divine story of creation was illegal.

• Referred to as the monkey trial.

• Evolution v. Creationism• 5. After 8 days of trail Scopes

was found guilty and fined $100. This further reinforced the national divide.

D. Pop Culture 1920’sIncrease in leisure

activities in the 1920’s

1. Increase in wages

2. Decrease in workday

3. Availability of Credit

In 1927, the talkies arrived in Hollywood. Many studio bosses were deeply sceptical of the new technology, including Charlie Chaplin. He was fiercely opposed to adding sound to his movies, believing that it would compromise his art form. He once said of sound movies, "Words can defeat the imagination.

Pop Culture 1920’s - Slang• All Wet• Baloney• Heebie Jeebies• Cat’s Pajamas• Flat Tire• Ossified• Keen• Pinched• Gam• Giggle Water• Glad Rags• Handcuff• Hoofer

• Mistaken

• Nonsense

• The creeps

• It is great or wonderful

• Boring Person

• Drunk

• Attractive or Appealing

• Arrested

• Woman’s Leg

• Alcohol

• Nice clothes

• Engagement Ring

• A dancer

Pop Culture 1920’s

The Jazz Singer was the first talking motion picture. It starredAl Jolson and was about a young man trying to make it as a singer.

Steamboat Willie

Academy Awards

Pop Culture 1920’s

• The Jazz Age• Most popular music of the

time. A mix of slave rhythms of the past.

• Spoke to the rebellion of youth.

• Went beyond the social norms.

• “Satchmo” – Louis Armstrong

Other Artists

Duke Ellington13 Grammy Awards9 while he was alive Bessie Smith

Empress of the Blues

George GershwinRhapsody in Blue

Pop Culture 1920’sThe Charleston was the most popular dance

fad.

Pop Culture 1920’sThe spectator sports of baseball and boxing become

extremely popular.

Jack Dempsey held the heavyweight-boxing title from 1919 through 1923, he lost to Gene Tunney in 1926. In 1927, Dempsey and Tunney fought an epic grudge match watched by more than 150,000 spectators at Soldier Field in Chicago.

George Herman Ruth, 1895—1948, American baseball player, considered by many the greatest of all baseball players

The “Black” Sox

Popular CultureThe participatory sports of golf and tennis

become affordable.

The heroes of the time embraced the attitude of pushing the limits

Charles Lindbergh – Completedthe first transatlantic flightfrom NY to Paris.

Gertrude Ederle Set the recordfor swimmingacross the English Channel

HarryHoudini – Famous EscapeArtist

Pop Culture 1920’s• Flappers' behavior was

considered outlandish at the time and redefined women's roles. The image of flappers were young women who went to jazz clubs at night where they danced provocatively, smoked cigarettes through long holders, and dated freely, perhaps indiscriminately. They rode bicycles, drove cars, and openly drank alcohol, a defiant act in the American period of Prohibition.

The Flapper – Clara Bow – The “It girl”