Henry Ford Industry Model

A Model-A of Henry Ford by 1900’s

In the 1920s the automobile/motorcar, came out to represent a great part of the American dream, offering independence and adventure to its owners. During that period, the price of cars fell dramatically, so that the people could afford them. That was a smart tactic for many car industries, because due to the previous high prices, only the rich were able to afford one. They could be sold to a mass market because they could be made more cheaply, using assembly line methods. The assembly line of Henry Ford had brought down approximately the average of a car from $850 in 1908 to $250 in 1925. As a result of this action, jobs in the car industry were easier to seek while factories were capable to provide

Henry Ford’s success led to the founding o f new industries that enriched the American economy. Many new industries developed, especially the ones of manmade fibres and electrical goods.

European Industries such as the German chemical industry was held back by the war causing the US to take the lead, making fertilizers plastics and dyes. The downfall of those European industries gave a great advantage to the American ones.

A picture from the Henry Ford Museum In effect, there was a second industrial revolution, in radios, consumer goods, automobiles, vacuum cleaners, fridges and telephones. Such goods were only owned by the wealthy ones in the past, but now many more Americans had the opportunity to take a chance on them. Eventually, huge numbers of those goods were sold to a mass market. These products were very beneficial, simply because they made people’s lives easier and now, since people could now spend less time on routine household work, they had more time for

These were industries such as textiles, coal, iron, steel and shipbuilding. Coal industries declined dramatically, due to the oil and electricity which replaced steam power while Cotton and wool industries declined due to the new man- made fibres, which replaced their products.

The government of the Repucblicans was in a preparation to give business its head. As Calvin Coolidge said: ‘the business of America is business’. The attempts to regulate business were few. Instead, taxes were cut, encouraging Americans to spend more. In 1922 the Fordney-McCumber Tariffs on imports, were imposed by the government. This action made foreign goods to look very expensive, so Americans bought only their country’s. In result, by 40% was the average valorem tariff rate raised, therefore many trading partners of the US had their tariffs increased. For example, France raised by 45% to 100% its tariff on cars. Henry Ford’s automobile industry and the automobile industry in general, had a long-term impact on the American economy and the global as well. The automobile industries began a new era in mankind, an era where technology advanced forward in huge steps allowing mankind to make new and tremendous in importance discoveries which will and have already defined the course of our