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What drove the US Economy in the 1920’s ?

MASS PRODUCTION

Simple repetitive tasks that could be learnt by anyone replaced skilled craftsmen and so workers received lower wages.

henry ford T model 1921

The assembly line (invented by Henry Ford) revolutionised the way things were built as parts move to the workers instead of workers carrying parts around. Therefore companies like Ford were able to make more cars a lot more quickly which lead to cars becoming more and more affordable.

As they were more cars being built this created a bigger demand for raw materials such as oil, steel, rubber and glass, Also more roads had to be built and so this lead to more jobs and the better transport system lead to more trade.

As companies like Ford were making so much money they could pay higher wages, Ford offer an astronomical $5 a day for factory workers. As there was higher wages people had more money to spend on things like cars, clothes, washing machines, radios, fridges etc., which fuelled the US economy further.



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