Rise of Mass Production and Consumption
The 1920s in the United States marked a significant period of economic recovery and expansion following World War I. Central to this transformation was the rise of mass production, which had its roots in the late 19th century but became a hallmark of the decade. Henry Ford's innovations in manufacturing, particularly the introduction of the assembly line system, revolutionized how goods were produced. By organizing production into repetitive tasks along a moving conveyor belt, Ford decreased the time it took to manufacture a car from over 12 hours to just about 3 minutes for a T-Model Ford.
This method not only improved efficiency but also significantly reduced costs, allowing more consumers to afford automobiles and other durable goods like washing machines, radios, and refrigerators. The practice of 'hire purchase' (buying on credit) emerged, enabling families to purchase these goods through small monthly payments, further fueling consumption.
As investments in housing and household goods surged, a cycle of increased employment and income arose, leading to higher consumer demand and production. However, these developments created an economic bubble, culminating in the stock market crash of 1929, which initiated the Great Depression, revealing the volatility of this consumer-oriented economy.