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