The Roaring Twenties: Economic Prosperity and Increased Standard of Living
Introduction to the Era
The 1920s, often called the "Roaring Twenties," was a period of significant economic growth and social change. Following a brief postwar recession, the U.S. experienced a boom that lasted until the end of the decade, characterized by a rise in the standard of living, advancements in technology, and cultural shifts.
Causes of Economic Prosperity
The economic boom was driven by a 64% rise in manufacturing output from 1919 to 1929, significantly influenced by increased productivity and technological innovations like the assembly line. The efficient mass production methods, pioneered by Henry Ford for automobiles, revolutionized various industries, enhancing worker productivity.
Increased Productivity and the Assembly Line
The assembly line, perfected by Ford in 1914, minimized the movement of factory workers, allowing them to perform repetitive tasks quickly. This innovation was widely adopted across major industries in the 1920s, leading to substantial gains in productivity.
Energy Technology
The shift towards oil and electricity further fueled economic growth. Oil began powering factories and vehicles, while electricity expanded into homes and industries, increasing electrical generation by over 300% during the decade.
Government Policy
The federal government's laissez-faire approach facilitated economic expansion. It provided corporate tax cuts and relaxed enforcement of antitrust laws, supporting an environment conducive to business growth and market speculation.
Consumer Economy
The adoption of electricity in homes spurred the purchase of consumer appliances like refrigerators and washing machines. Automobile affordability transformed personal transportation, and the introduction of buying on credit expanded consumer purchasing power but later contributed to economic instability.
Impact of the Automobile
Automobiles dramatically altered American society, boosting industries like steel, rubber, and gasoline, and changing everyday life in terms of commuting, leisure, and social interactions. However, it also introduced challenges such as traffic congestion and societal concerns over youth independence.
Farm Problems
Despite the economic boom, farmers faced declining prosperity. Prices for crops fell due to overproduction, exacerbated by technological advances that increased yield but not profitability, setting the stage for economic difficulties in rural America.
Labor Union Struggles
Although wages rose, union membership declined by 20% due to the prevalent "open shop" policies and corporate strategies like welfare capitalism, which aimed to undermine unionization efforts.
Technology and Culture
The decade saw significant changes in mass media and entertainment:
Architecture: Influenced by Art Deco, new building designs integrated modernist styles with new materials.
Mass Media: Radio emerged as a powerful medium, joining newspapers in shaping public opinion and culture.
Popular Music: Jazz, brought north by African American musicians, symbolized modern urban culture, while other genres also gained popularity through radio and phonographs.