The New Automobile Industry And Propsperity Of 1920's

1597 words - 6 pages

The New Automobile Industry and Propsperity of 1920's

I believe that the comment: "Without the new automobile industry the
prosperity of the 1920s would scarcely have been possible" is
exaggerated and not true. In my opinion the Motor Industry- one of the
new industries, revolutionizing industries with new methods- was not
the most important reason for the economic boom.

I believe World War 1 was the most important reason for the economic
boom. Whilst France, Britain and Germany were too busy fighting a war
to focus on trade and growth, America was able to continue growing and
exceeded the European powers. As a result of the war, Germany's
chemical industry ceased to advance any further, but before it was one
of the world's most successful chemical industries. During the war the
US chemical industry continued to advance and exceeded the German
chemical industry. It now supplied chemical products such as
fertilizers and dyes, which had previously come from Germany. While
the European powers were too busy to trade, America took over their
places trading with the European powers' colonies. Explosives and
weapons during the war stimulated a range of by-products, which became
new industries. Plastics and other new materials were also being
produced too. Since the Americans joined the fighting in 1917, they
hadn't been in the war long enough for the war to drain America's
resources and put a strain on the economy as it had done to the
European countries. After the war there was a slight downfall in
American industry but after some readjustment to peace, by 1922 the
American economy was growing fast again.

The next most important reasons were The American State of mind and
the New Industries & New methods. They both stimulated each other. As
a result of mass advertising via radio, billboards, posters, etc,
Americans were being strongly encouraged to spend money. Americans
began to believe it was part of being American to spend lots of money.
They believed they had a right to 'prosperity'. Many people made it
their aim to have a nice house, good job, lots to eat and all the
latest consumer items at home - now known as "The American Dream". The
New Industries made products for the people to buy. As people were
spending more and more, the new industries had to make more and more
products and therefore they grew and developed and made more money and
contributed to the boom.

Out of these new industries the most important was the Motorcar
industry. The motorcar had been only been developed in the 1890s. The
first cars were built by blacksmiths and other skilled craftsmen,
taking a long time and also very expensive. In 1900 only 4000 cars
were made! Henry Ford revolutionized the production of cars. In 1913
he set up the first moving production line in the world, in a giant
shed in...

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