Category:Commerce and Economy

Commerce and the Economy

- The 1920s witnessed a boom in employment for women, though their occupations still fit traditional gender roles. These positions, or pink-collar jobs, were usually of a secretarial nature. ''Alan Brinkley, American History: Connecting with the Past, 14th Ed., Vol. 2 (New York, McGraw-Hill, 2012). p. 638.''

- In the 1920s, a serious wealth inequality existed in America despite the economic growth. Greater than 66% of Americans lived at or below what economists call a "minimum comfort level." ''Alan Brinkley, American History: Connecting with the Past, 14th Ed., Vol. 2 (New York, McGraw-Hill, 2012). p. 635.''

- In order to prevent worker backlash, some employers utilized a new concept called welfare capitalism, wherein employers provided certain welfare-related benefits to the workers. Henry Ford is one such example, as he provided his employees with higher pay and a shorter workweek. ''Alan Brinkley, American History: Connecting with the Past, 14th Ed., Vol. 2 (New York, McGraw-Hill, 2012). p. 635.''

- The standardization of the assembly line had a negative effect on skilled workers. This was a plus for employers and a negative for workers: Manufacturing productivity increased 32% between 1922-1929 while wages increased by only 8%. ''James P. Roark et. al, The American Promise: A Compact History, 4th ed., Vol. 2 (Boston: Bedford/St. Martin's, 2010). p. 573.''

- American consumerism went into full effect with the introduction of installment buying. This process allowed a consumer to purchase a new good by making a small initial payment followed by incremental monthly payments. ''James P. Roark et. al, The American Promise: A Compact History, 4th ed., Vol. 2 (Boston: Bedford/St. Martin's, 2010). p. 575.''

​- Early causes and warning signs to the Great Depression presented themselves in the late 1920s. By 1928, the previously flourishing construction industry started to decline. James West Davidson et al, 'Experience History', 2nd'' ed., Vol. 2 (Boston, McGraw Hill, 2011). p. 682.''

- Due to a significant decrease in consumer spending, business inventories saw a staggering rise. In 1928, business inventories stood at $500 million. By 1929, inventories were measured at $1.8 billion. James West Davidson et al, 'Experience History', 2nd'' ed., Vol. 2 (Boston, McGraw Hill, 2011). p. 682.''

- Black Thursday took place on October 24, 1929, when a massive number of orders to sell stock were issued by concerned investors. The result was a record $3 billion in market losses. James West Davidson et al, 'Experience History', 2nd'' ed., Vol. 2 (Boston, McGraw Hill, 2011). p. 681.''

- On Tuesday, October 29, 1929, the week after Black Thursday, stockholders lost $10 billion as fear spread and "New Era" optimism dwindled. James West Davidson et al, 'Experience History', 2nd'' ed., Vol. 2 (Boston, McGraw Hill, 2011). p. 681.''

- The economic vitality of the Roaring Twenties was clearly deteriorated by the end of the decade. During the 1920s, 6,000 banks failed and half of America's 25,000 banks were unprotected by the Federal Reserve. James West Davidson et al, 'Experience History', 2nd'' ed., Vol. 2 (Boston, McGraw Hill, 2011). p. 682.''

