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Was Henry Ford responsible forthe rise of the consumer culture
in the 1920s?
Consumer Economy
• Individuals who purchase items or products- in other words they consume
• What contributed to this taking place in the1920s?
Rise of the Consumer Economy
• Electrical Power Distribution• Power customers quadrupled between 1913
and 1927• Mainly in urban areas - why?• Farms were too remote for the economical
infrastructure
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Rise of the Consumer Economy
• General Electric Company– Formed from Thomas Edison’s Electric
Company– Began developing and selling items such as
• Washing machines• Vacuum cleaners• Sewing machines• Coffee pots• Etc.
Rise of the Consumer Economy
• Americans purchased these items on credit– New way to pay for things - installment plan– High interest rates 11-40%
• Purchased items such as:– Cars - 60%– Furniture - 70%– Radios, Refrigerators, Vacuums - 80%– Sewing and Washing Machines - 90%
Henry Ford
The Man and His Vision
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The Nation (1909)
• “As soon as a standard cheap car can beproduced of a simple type that does notrequire mechanical aptitude in the operatorand that may be run inexpensively there willbe no limit to the automobile market”
Fords Goals
• Design a car for:– Doctors– Lawyers– Businessmen– Prosperous farmers
Ford’s Criteria
• High Quality• Simplicity - masses not mechanics• Absolute reliability• Easy to control and operate
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Cheap to BuyExpensive to Build
• Large number productions• Slow rate of production• Expensive production machines• Demand for high quality by Ford
Ford’s Dilemma
• He had to change the way parts wereproduced
• Example– Magneto Assembly - 29 separate parts– Old way - One worker given all parts to build it– Took 20 minutes
Fords Idea
• New Way - 29 workers in a line– First try 29 units in 13 minutes– 1914 - seven minutes– 1915 - five minutes
• Ford improved the assembly line, did notinvent it
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Fords Line
• Assembly line ran at 44 inches per minute• All employees were required to assemble
their portion of the vehicle as the linemoved
Ford’s Assembly Line
Chassis Assembly
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Chassis Assembly
Chassis Assembly
Chassis Assembly
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Chassis Assembly
Chassis Assembly
Start-Up
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Body Attachment
One Day’s Work
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Ford’s Success and Problems
• In 1914 Ford’s profit was $27 Million• 300% employee turnover• Raised worker pay from $2.40 to $5.00/day• But
– You had to do things his way– Wife had to stop working– Kids must be in school– Had to have a bank account
Ford’s Sociology Department
• Kids arrested - Ford lawyer helped• Wife sick - Ford doctor helped• Worker drunk - Wife received paycheck
• Ford felt that if he was going to pay $5.00per day he didn’t want to have problems
Life at Ford
• Immigrants were hired in their native language• Company notices printed in multiple languages• Held English classes• Held naturalization classes• Company award for naturalized citizens• Hired handicapped - Leader• Hired African Americans - Leader
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Ford’s Marketing
• Advertisement in the1920s
Ford’s Marketing
• Advertisement in the1920s
Ford’s Marketing
• Advertisement in the1920s
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Ford’s Marketing
• Advertisement in 2005
Related Industries
• Garages• Car dealerships• Motels• Campgrounds• Gas stations• Restaurants• Truck lines• In 1929 US spent $2 billion dollars to build roads
New Industrial Growth
• Laissez-Faire policies contributed to rapidexpansion of business
• Publishing• Movies• Machine making• Petroleum• Steel
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Ford’s Contribution to theEconomy in the 1920s
• 15% of Steel Production• 80% of Rubber Production• 50% of Glass• 65% of Leather and Upholstery• 7 Billion Gallons of Gasoline
Other Industries
• Manufacturers copied the Ford assemblyline of production
• Increased the amount of products made• Created more products faster and cheaper• Increased the amount of products available
to consumers
Henry Ford
• Responsible for change in AmericanIndustry
• Responsible for a change in AmericanCulture
• Responsible for a change in the Americannation
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Was Henry Ford responsible forthe rise of the consumer culture
in the 1920s?
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