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2) Technical advances
A) Motor vehicle industry
- Henry Ford wanted anyone earning a reasonable wage to be able to afford a motor car this led to 1914 - assembly line system introduced.
- as a result the cost of Model T Ford came down from $950 to $500 in 1914.
- by 1920 a car would be produced every 60 seconds.
By 1925 - cars cost $290 and one car was produced every 10 seconds.
By 1930 - 26.5 million cars were on U.S.. Roads.
However supply was greater than demand.
B) Electrical Consumer Goods
New Technologies led to the development of labour saving devices on a large scale.
1912 - 2.4 million electrical goods sold by 1929 this had risen to 160 million.
However much of rural U.S. without electricity.
3) New Business methods
A) Growth of Huge Corporations
B) Management Science
C) Advertising and salesmanship - new mass media - cinema and radio
By 1928 there were 17,000 cinemas in the US the time between features were filled with commercials.
By 1929 - 618 radio stations throughout the USA. The Dempsey-Tunney fight of 1929 was listened to by 50 million therefore huge audience for commercials.
4) Easy Credit
By 1929 almost $7 billion dollars worth of goods sold on easy credit and make goods more accessible.
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