The Automobile Indicator
Cars had been invented and available for purchase at the turn of the century. By 1930 more than 25 million cars were on the road in the United States. In 1929 close to two billion dollars was spent on paved roads and bridges. Most automobile purchases had been made during the 1920s when engineer and businessman Henry Ford developed a process for producing cars for the masses.
In 1908, Ford designed and sold the Model-T, an improved version of a car he had designed earlier. He used principles of scientific management to develop an assembly- line process to assemble cars quickly, which reduced their price so the general public could more easily afford them. Parts were developed to be interchangeable, and each car was exactly the same. Car manufacturers also purchased steel, rubber, and glass.
Increases in car manufacturing boosted sales in other areas of the economy, as well. In 1908, the base price for one of Ford’s cars was $950. Due to Ford’s efficient methods and consumer demand, the price of a car dropped to $360 by 1916. During the 1920s, Ford’s manufacturing operation was the biggest industry in the United States. The common man was able to purchase a car.
Look at the picture below. What other opportunities did America’s fascination with cars create?
