1920s consumption (article) | 1920s America | Khan Academy (2024)

Consumption in the 1920s

The prosperity of the 1920s led to new patterns of consumption, or purchasing consumer goods like radios, cars, vacuums, beauty products or clothing.

The expansion of credit in the 1920s allowed for the sale of more consumer goods and put automobiles within reach of average Americans. Now individuals who could not afford to purchase a car at full price could pay for that car over time -- with interest, of course!

With so many new products and so many Americans eager to purchase them, advertising became a central institution in this new consumer economy.

Affordable automobiles

New possibilities of mobility opened up in the 1920s for a large percentage of the US population. Once a luxury item, cars became within reach for many more consumers as automobile manufacturers began to mass produce automobiles. The most significant innovation of this era was Henry Ford’s Model T Ford, which made car ownership available to the average American.

By the early twentieth century, hundreds of car manufacturers existed. But they all made products that were too expensive for most Americans. Ford’s innovation lay in his use of mass production to manufacture automobiles. He revolutionized industrial work by perfecting the assembly line, which enabled him to lower the Model T’s price from $850 in 1908 to $300 in 1924, making car ownership a real possibility for a large share of the population. Soon, people could buy used Model Ts for as little as five dollars, allowing students and others with low incomes to enjoy the freedom and mobility of car ownership. By 1929, there were over 23 million automobiles on American roads.

An advertisem*nt entitled “Watch the Fords Go By” features drawings of two Ford automobiles. The prices are listed at 780and725, along with details about each model. In the center of the advertisem*nt, an illustration shows a couple driving along an idyllic country road. At the bottom is the text “Ford Cars Sold by Russell Motor Car Co. 2120-2130 Canal Street, New Orleans, LA. See Our Exhibit Booth at Show”.

The assembly line helped Ford reduce labor costs within the production process by moving the product from one team of workers to the next, each of them completing a step so simple that workers had to be—in Ford’s words—“no smarter than an ox.” Ford’s reliance on the assembly line placed emphasis on efficiency over craftsmanship.

Ford’s focus on cheap mass production brought both benefits and disadvantages to his workers. Ford would not allow his workers to unionize, and the boring, repetitive nature of the assembly line work generated a high turnover rate.

A photograph shows assembly line workers producing Ford automobiles.

On the other hand, Ford doubled workers’ pay to five dollars a day and standardized the workday to eight hours—a reduction from the norm of the time. Ford’s assembly line also offered greater racial equality than most employment of the time; he paid white and black workers equally. Seeking these wages, many African Americans from the South moved to Detroit and other large northern cities to work in factories. Ford shaped the nation’s mode of industrialism to rely on paying decent wages so that workers could afford to be the consumers of their own products.

The automobile changed the face of America, both economically and socially. Industries like glass, steel, and rubber processing expanded to keep up with auto production. The oil industry in California, Oklahoma, and Texas expanded as Americans’ reliance on oil increased and the nation transitioned from a coal-based economy to one driven by petroleum.

The need for public roadways required local and state governments to fund a dramatic expansion of infrastructure, which permitted motels and restaurants to spring up and offer new services to millions of newly mobile Americans with cash to spend. With this new infrastructure, new shopping and living patterns emerged, and streetcar suburbs gave way to automobile suburbs as private automobile traffic on public roads began to replace mass transit on trains and trolleys.

Airplanes

The 1920s not only witnessed a transformation in ground transportation but also major changes in air travel. By the mid-1920s, men—as well as some pioneering women like the African American stunt pilot Bessie Coleman—had been flying for two decades. But there remained doubts about the suitability of airplanes for long-distance travel. Orville Wright, one of the pioneers of airplane technology in the United States, once famously declared, “No flying machine will ever fly from New York to Paris [because] no known motor can run at the requisite speed for four days without stopping.” However, in 1927, this skepticism was finally put to rest when Charles Lindbergh became the first person to fly solo across the Atlantic Ocean, flying from New York to Paris in 33 hours.

Charles Lindbergh stands in front of his plane Spirit of St. Louis.

Lindbergh’s flight made him an international hero: the best-known American in the world. On his return, Americans greeted him with a parade. His flight, which he completed in the monoplane Spirit of St. Louis, seemed like a triumph of individualism in modern mass society and exemplified Americans’ ability to conquer the air with new technology.

Following his success, the small airline industry began to blossom, fully coming into its own in the 1930s as companies like Boeing and Ford developed airplanes designed specifically for passenger air transport. As technologies in engine and passenger compartment design improved, air travel became more popular. In 1934, the number of US domestic air passengers was just over 450,000 annually. By the end of the decade, that number had increased to nearly two million.

The lure of technology

Technological innovation influenced more than just transportation. As access to electricity became more common and the electric motor was made more efficient, inventors began to churn out new and more complex household appliances. Newly developed innovations like radios, phonographs, vacuum cleaners, washing machines, and refrigerators emerged on the market during this period. These new items were expensive, but consumer-purchasing innovations like store credit and installment plans made them available to a larger segment of the population.

Many of the new devices promised to give women—who continued to have primary responsibility for housework—more opportunities to step out of the home and expand their horizons. Ironically, however, these labor-saving devices tended to increase the workload for women by raising the standards of domestic work. With the aid of these tools, women ended up cleaning more frequently, washing more often, and cooking more elaborate meals rather than gaining spare time.

Despite the fact that the promise of more leisure time went largely unfulfilled, the lure of technology as the gateway to a more relaxed lifestyle endured. This enduring dream was a testament to the influence of another growing industry: advertising. The mass consumption of cars, household appliances, ready-to-wear clothing, and processed foods depended heavily on the work of advertisers. Magazines like Ladies’ Home Journal and The Saturday Evening Post became vehicles to connect advertisers with middle-class consumers. Colorful and occasionally provocative print advertisem*nts decorated the pages of these publications and became a staple in American popular culture.

An advertisem*nt headlined “Keep That Wedding Day Complexion” features an illustration of a rosy-cheeked, elaborately dressed bride. An image of Palmolive soap is shown alongside a lengthy description of the soap’s benefits. At the bottom, to illustrate that the soap contains oils used by Cleopatra, an image depicts two rosy-cheeked, white women dressed in flowing garments and seated in a room whose décor is reminiscent of ancient Egypt.

1920s consumption (article) | 1920s America | Khan Academy (2024)

FAQs

Why did consumer spending increase during the 1920s select the two correct answers? ›

Consumer spending increased during the 1920s for two main reasons: Consumers responded to the decrease in prices of manufactured goods: The 1920s experienced a decrease in prices of manufactured goods due to advancements in mass production techniques and increased competition among businesses.

What was the concept of consumerism in America in the 1920's? ›

Consumerism can be thought of as the culture surrounding the buying and selling of products. Consumerism came into its own throughout the 1920s as a result of mass production, new products on the market, and improved advertising techniques.

What was consumption like in the 1920s? ›

Consumption in the 1920s

The prosperity of the 1920s led to new patterns of consumption, or purchasing consumer goods like radios, cars, vacuums, beauty products or clothing. The expansion of credit in the 1920s allowed for the sale of more consumer goods and put automobiles within reach of average Americans.

What was the most important new product for Americans in the 1920s group of answer choices? ›

But the most important consumer product of the 1920s was the automobile. Low prices (the Ford Model T cost just $260 in 1924) and generous credit made cars affordable luxuries at the beginning of the decade; by the end, they were practically necessities.

How did consumer goods impact America's economy during the 1920s? ›

A fundamental shift took place in the American economy during the 1920s. The nation's families spent a declining proportion of their income on necessities (food, clothing, and utilities) and an increasing share on appliances, recreation, and a host of new consumer products.

Why did people of the 1920s have more spending money than in the past? ›

The 1920s was a decade of increasing conveniences for the middle class. New products made household chores easier and led to more leisure time. Products previously too expensive became affordable. New forms of financing allowed every family to spend beyond their current means.

How did consumerism change American society? ›

Greater choice, easier access, and improved goods at lower prices meant that even lower-income Americans, whether rural and shopping via mail order, or urban and shopping in large department stores, had more options. These increased options led to a rise in advertising, as businesses competed for customers.

What were 4 problems with the economy in the 1920s? ›

By the end of the decade several problems in the economy were becoming apparent including speculation, poverty, overproduction and tariffs. Why was speculation a long-term weakness in the 1920s American economy? Speculation was buying shares to sell for a profit, based on the belief that prices would carry on rising.

How does consumerism affect society? ›

Is Consumerism Bad for Society? While people need to be consumers in order to live and obtain our needs and wants, excess consumerism is widely thought to be a negative for society. Consumerism leads to negative externalities like pollution and waste. Moreover, consumerism begins to define people by what they own.

What were the benefits of consumerism in 1920s society? ›

Consumerism in 1920s society brought benefits such as increased leisure time and a higher standard of living. Explanation: In the 1920s, consumerism had significant benefits for society. Two of these benefits were increased leisure time and an increased standard of living.

How did consumers weaken the economy in the late 1920s? ›

The correct answer is B: Consumers bought too many goods they could not afford. The late 1920s is the time of the Great Depression, according to economic history. The number of goods produced increased, and people purchased more than they could pay for.

What is the problem with consumerism? ›

One negative impact of consumerism is that it can lead to overconsumption and waste. When people consume more than they need, it can result in excess waste and pollution. This can have serious consequences for the environment, including habitat destruction, water and air pollution, and climate change.

What three items most changed modern culture in the 1920s? ›

The 1920s was a decade of change, when many Americans owned cars, radios, and telephones for the first time. The cars brought the need for good roads. The radio brought the world closer to home. The telephone connected families and friends.

How did high consumer spending in the 1920s contribute to the Great Depression? ›

High consumer spending on credit in the 1920s contributed to the Great Depression as it led to increased consumer debt. Many people were unable to pay back their loans following the stock market crash of 1929, resulting in many banks failing due to the unpaid debts.

What was the most popular consumer attraction of the 1920s? ›

MOVIES. The increased prosperity of the 1920s gave many Americans more disposable income to spend on entertainment. As the popularity of “moving pictures” grew in the early part of the decade, “movie palaces,” capable of seating thousands, sprang up in major cities.

How did consumer spending increase in the 1920s? ›

The factors that contributed to increased consumer spending in the 1920's was increased incomes and with the introduction of credit.

Why did consumer debt increase in the 1920s? ›

In the 1920s, finance companies emerged as middlemen, borrowing from banks and lending to car dealerships, which could then extend financing plans to individual buyers. “For the first time, money from the core of capitalism, the consumer banks, was invested, albeit indirectly, in consumer debt,” Hyman writes.

What were 3 reasons for the increase in the economy during the 1920s? ›

The modern auto and airline industries were born. The U.S. victory in World War I gave the country its first experience of being a global power. Soldiers returning home from Europe brought with them a new perspective, energy, and skills. Everyone became an investor thanks to easy access to credit.

What causes an increase in consumer spending? ›

The key factor that determines consumer spending is income and employment. Those who have steady wages have the ability to make discretionary purhcases, thereby generating demand. Other factors include prices, interest, and general consumer confidence.

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