Assembly Line Slides The Roaring
Engine
Mass Production, Henry Ford, and the Birth of the Modern Middle Class
Unit: 1920s Economics
Lesson 1 of 5
The Efficiency Challenge
Round 1: The Artisan
Work individually to build as many paper airplanes as possible in 3 minutes. You are responsible for every fold, from start to finish.
Round 2: The Assembly Line
Work in a team . Each person is responsible for only ONE specific fold. Pass the paper down the line to the next person.
PREDICTION
Which method will produce more planes?
Which method will produce higher quality?
Which job would you rather do for 8 hours?
The Machine That
Changed Everything
Before 1913, building a car was a luxury craft. It took 12.5 hours to assemble one Model T.
By 1925, Ford's assembly line produced a new car every 10 seconds .
Price dropped from $850 to $260
Cars became a necessity, not a luxury
Interchangeable parts meant easy repairs
"Any customer can have a car painted any color that he wants so long as it is black."
— Henry Ford
The $5 Day
The Wage Jump
Ford doubled the industry standard wage overnight. Most factories paid $2.34; Ford paid $5.00.
Creating Customers
"If you want people to buy cars, you have to pay them enough to afford one." - Ford's Strategy.
Social Control
To get the $5, workers had to live "cleanly"—no drinking, no gambling, and keeping a tidy home.
Discussion Question
Was Ford a "Man of the People" or was this a brilliant business calculation to stop unions and worker turnover?
Assembly Line Worksheet The Model T Simulation
Efficiency vs. Experience
Name:
Date:
Part 1: Production Log
Production Method Total Units Built Defective Units Net Production Round 1: Individual Craftsmanship Round 2: Assembly Line Efficiency
Part 2: Simulation Reflection
Which method was more productive? Why do you think that is?
How did your level of "boredom" or "focus" change between rounds?
Analyzing Ford's "$5 Workday"
Primary Source Snippet
"The payment of five dollars a day for an eight-hour day was one of the finest cost-cutting moves we ever made... The people were happy, they worked harder, and they could afford to buy our products. We didn't do it to be nice; we did it to be efficient."
— Henry Ford, My Life and Work
1. If the assembly line makes work boring and repetitive, why did Ford have a massive line of people waiting for jobs at his factory?
2. "Circular Consumption": How did paying workers more help Ford's profit in the long run?
3. Synthesis: Was the Assembly Line a net positive or negative for the American worker in the 1920s? Defend your position. Teacher Facilitation Guide Teacher Facilitation Guide
Roaring Economics (1920-1929)
Sequence Duration:
5-7 Days
Sequence Arc
This unit moves students from the mechanics of production (efficiency/labor) to the psychology of consumption (ads/credit), and finally to a structural analysis of the economy (urban/rural divide). The goal is for students to see that the "Roar" of the 20s was loud, but unevenly distributed and built on borrowed money.
Lesson 1
Ford & Production
Lesson 2
Advertising & Wants
Lesson 3
Credit & Margin
Lesson 4
Urban vs Rural
Lesson 5
Synthesis Brief
Key Insights & Common Misconceptions
Lesson 1: The $5 Day
Tip: Ensure students understand that Ford's wage increase wasn't charity—it was a way to solve high turnover (380% per year) and create a customer base. If they can't afford the car, he can't sell the cars.
Lesson 3: Buying on Margin
Misconception: Students often think the crash happened because the stocks were "fake." Clarification: The stocks were real, but the wealth was inflated. Buying on margin meant people owed money they didn't have to brokers who also didn't have the cash. It was a liquidity trap.
Lesson 4: The Rural Divide
Insight: Highlight that the Great Depression effectively started in 1920 for farmers. While the rest of the country "roared," rural America was in a decade-long depression that eventually dragged the urban economy down.
Simulation & Calculation Quick Checks
Credit Ledger (Lesson 3)
Radio Installment Total: $95.00 ($5 down + $90 in payments).Interest Paid: $20.00 (26.6% increase over cash price).Margin Scenario A Profit: $5,000 (Initial $1k investment turned into $6k total).Margin Scenario B Loss: $1,000 loss of principal + $1,000 still owed.
Advertising (Lesson 2)
Status: GM slogan ("Every purse and purpose").Anxiety: Listerine ("Often a bridesmaid").Lifestyle: Lucky Strike ("Reach for a Lucky"). Advertising Slides Selling the Dream
Psychology, Persuasion, and the Rise of Consumerism
Lesson 2: Media Literacy
Case Study: Listerine
How to Invent a
Medical Condition
In the 1920s, Listerine didn't sell "fresh breath." They sold a cure for "Halitosis."
"Halitosis" was an obscure medical term for bad breath. By using it, they made a common thing sound like a terrifying social disease.
The result? Sales went from $115k to $8M in 7 years.
"Often a bridesmaid, never a bride"
The ads warned women that their breath was the only thing standing between them and marriage.
The Goal: Create an insecurity, then sell the solution.
The Great Shift: Need to Want
The "Old" Way (Pre-1920s)
Focused on utility and durability .
"This soap gets you clean."
"This car is made of steel."
"This coat will last 10 winters."
The "Modern" Way (1920s)
Focused on identity and status .
"This soap makes you popular."
"This car proves you've made it."
"This coat is what New Yorkers wear."
The Persuader's Toolbox
Social Appeal
Buy this to be part of the "in-crowd." Fear of being left behind (early FOMO).
Fear & Anxiety
What will people think of your kitchen? Your clothes? Your hygiene?
Luxury for All
Electric fridges and washing machines are no longer for the rich—you deserve them too.
Coming Up: The Ad Architect
Apply these techniques to real 1920s advertisements.
Ad Architect Worksheet Ad Architect
Cracking the Code of 1920s Persuasion
Name:
Date:
Part 1: Decoding the Hook
Read the description of the 1920s advertisement below. Then, answer the analysis questions.
Advertisement Case Study: The General Electric Monitor Top Refrigerator (1927)
The ad shows a brightly lit, modern kitchen. A woman in a stylish dress is showing her new refrigerator to a group of well-dressed neighbors. The neighbors look on with expressions of awe and envy.
Headline:
"The Mark of the Modern Home: Why be the last to own a General Electric?"
Copy Text Snippet:
"No more messy ice-blocks. No more spoiled milk. But more importantly, no more staying behind the times. Your neighbors have moved into the electric age. Have you? Bring the sparkle of modern science into your kitchen today."
1. Identify the "Problem" & "Solution"
What fear or insecurity does this ad create? How does the fridge fix it?
2. Target Audience & Appeal
Who is this ad for? Is it appealing to "Need" or "Want"? Explain.
Part 2: The Persuader's Toolbox
Match the 1920s ad slogan to the psychological technique it uses. (Draw a line)
"Often a bridesmaid, never a bride." (Listerine)
"Reach for a Lucky instead of a sweet." (Lucky Strike Cigarettes)
"A car for every purse and purpose." (General Motors)
Status & Accessibility
Social Anxiety/Insecurity
Health & Lifestyle Benefits
Pitch Your Product
Madison Avenue Challenge
Your Task:
Create a 1920s-style ad for a **Radio**. Use at least one psychological technique discussed in class (Fear, Status, or Modernity).
Draft your Headline:
Which technique are you using?
Sketch your visual here
Credit Slides Buy Now,
Pay Later
The Fragile Foundation of the 1920s Prosperity
Lesson 3: Credit & Risk
Installment Plans
Before the 1920s, if you couldn't pay cash , you didn't buy it.
The "Dollar Down" Revolution
By 1927, 75% of automobiles and 80% of phonographs were bought on "installment plans" (credit).
"Possess today! Pay tomorrow! The easy way to have the life you've always dreamed of."
The Consumer Equation
Wages Stagnant
Spending Exploding
Massive Debt
Buying on Margin
Gambling with borrowed money.
The Method
Investors only had to put down 10% of a stock's price. The broker lent them the other 90%.
The Trap
If the stock price drops, the broker makes a "Margin Call." You must pay back the full loan IMMEDIATELY.
The Domino Effect
1 Stock prices dip slightly.
2 Brokers panic & call in loans.
3 Investors sell stocks to pay loans.
4 MARKET CRASHES.
Were There
Warnings?
"The country is witnessing a spectacular rise in the stock market... but this is not based on actual production or profits. It is a house of cards built on the shifting sands of credit."
— Roger Babson, Economist (Sept. 1929)
The Reality Check
Wealth was concentrated at the top. The "roaring" part only applied to a few.
Factories were overproducing—making more goods than people could actually afford to buy.
Consumer debt had tripled in 10 years.
The Credit Ledger Worksheet The Credit Ledger
Calculating the Cost of Prosperity
Name:
Date:
Part 1: The Real Cost of "Installments"
You are a clerk in 1925 earning **$25.00 a week**. You want to buy a high-end **Atwater Kent Radio**.
Option A: Cash Price
$75.00
Option B: Installment Plan
$5.00 Down Payment
+ $2.00/week for 45 weeks
Calculate the Total Cost for Option B:
$
How much "Interest" (extra money) did you pay?
$
Reflection: If you lose your job at week 20, what happens to the radio?
Part 2: The Stock Market Gamble
The "Margin" Scenario
You buy 100 shares of RCA stock at **$100 per share**.
Total Value: **$10,000**
You pay **$1,000** (10% Margin). Your broker lends you **$9,000**.
SCENARIO A: The Stock goes UP to $150.
You sell the shares. You pay back the $9,000 loan. How much profit do you keep?
$
SCENARIO B: The Stock goes DOWN to $80.
The broker makes a "Margin Call" for the $9,000. You sell for $8,000. How much do you still owe?
$
Part 3: The Warning
"Installment buying is a great thing if the buyer can keep his job. But the whole system is built on the assumption that everyone will stay employed and wages will keep rising. If a slight depression hits, the whole structure will come crashing down like a house of cards."
— Financial Review, 1928
Based on today's math, why is this economist calling the 1920s economy a "House of Cards"?
Urban vs Rural Slides A Tale of
Two Americas
The Urban Boom, the Rural Bust, and the Myth of Universal Wealth
Lesson 4: Comparative Economics
The City
Skyline Dreams &
Electric Nights
By 1920, for the first time in history, more Americans lived in cities than on farms.
Electricity powered 70% of urban homes by 1929.
The era of the Skyscraper (Empire State, Chrysler).
A boom in entertainment: Jazz clubs, cinemas, radio.
URBAN WAGES
+20% INCREASE
Average real income growth (1923-1929)
The Price of Wheat (Per Bushel)
$2.45 1919 (WWI Peak)
$0.90 1921 (Post-War)
$1.05 1928 (Stagnation)
Source: US Dept. of Agriculture Historic Data
The Farm
Foreclosure &
Forgotten Fields
While cities roared, the countryside suffered . WWI had created artificial demand that vanished.
New tech led to overproduction and price drops.
Between 1920-1929, 600,000 farmers went bankrupt.
90% of rural homes had NO electricity.
The Inequality Gap
"One half of America was buying a second car on credit, while the other half was losing their home to the bank."
The Connection?
If 30% of the population (farmers) can't afford to buy products, how long can the city's factories keep growing?
The Result?
Wealth became highly concentrated. By 1929, the top 0.1% of families owned as much as the bottom 42% combined.
Urban vs Rural Worksheet The Divide
Urban Wealth vs. Rural Struggle
Name:
Date:
Part 1: The Tale of Two Photos
Photo A: New York City (1925)
Observations: Photo A
Photo B: Nebraska Farm (1925)
Observations: Photo B
Part 2: The Data Gap
U.S. Household Modernization (1929)
Category % Urban Homes % Rural Homes Wired for Electricity 85% 10% Indoor Plumbing 71% 12% Radios 45% 4%
1. How does the lack of electricity in rural areas limit the "Consumer Revolution" for farmers?
2. Critical Thinking: If the cities are the producers and the rural areas are the food suppliers, how does the poverty of one eventually hurt the other?
Economic Advisor Brief Confidential
Office of the Economic Advisor
Recipient:
President Calvin Coolidge
Date:
November 12, 1928
The Mission: State of the Economy Brief
Mr. President, the stock market is at an all-time high, but whispers of instability are growing. Your task is to evaluate the sustainability of our current prosperity. Use the data you have collected over the last four lessons to provide a clear, evidence-based recommendation.
1. Production & Labor
Think: Assembly lines, $5 day, worker satisfaction vs. boredom.
2. Consumer Credit & Debt
Think: Installment plans, buying on margin, "Want-based" ads.
3. The Rural Crisis
Think: Wheat prices, foreclosure rates, urban/rural divide.
4. Final Recommendation
Verdict: Is the economy Healthy or in Danger? Why?
Includes Wage Data
Includes Debt Analysis
References Farmers
File Ref: ECON-1920-SYNTHESIS
Economic Advisor Slides GE 124.5 ... RCA 102.3 ... FORD 15.2 ... GM 88.1 ... STND OIL 45.6 ... US STEEL 112.9 ...
... GE 124.7 ... RCA 102.5 ... FORD 15.3 ... GM 88.3 ... STND OIL 45.7 ... US STEEL 113.1
The Warning
Bell
Synthesis & Sustainability: Advising the President
Culminating Assessment
March 1929: Peak Prosperity?
The headlines say the economy is the strongest in world history.
The Ticker Tape
"Brokers report record volume. Everyone from shoe-shine boys to grandmothers is buying stock. No end to the bull market in sight."
BUT YOU KNOW THE DATA.
The Critical Question
"If you knew what was coming in October 1929, what would you tell the President in March?"
Your Role: Presidential Economic Advisor
The Advisor's Checklist
Production
Are we making too much? Can people afford what we are building?
Recall Lesson 1
Consumer Debt
Is the "Buy Now, Pay Later" model sustainable? What happens if wages stop growing?
Recall Lessons 2 & 3
The Rural Warning
If the farmers can't buy goods, who will? Is the rural bust a sign of a larger crash?
Recall Lesson 4
Write the Brief
Your goal isn't just to report data. It is to persuade the President. Use evidence to defend your verdict.
Evaluation Criteria
Use specific data points
Synthesize 3+ lessons
Clear recommendation
Economic reasoning
