Samstag, 24. November 2012

The mass consumer society of the “Golden Twenties” in the USA

In the twenties of the 20th century the USA entered an extrordinary phase of prosperity. Many positive circumstances met at this time, both in the USA and globally. The “Golden Twenties” turned the U.S. society into a in this shape new mass consumer society.

Basis of the “Golden Twenties” was a thrust of industrialization, that startet around 1870 in the USA. Different factors favored that: Strong population increase caused by immigration and high birth rates provided basically enough worker to use new factories efficiently. At the same time the high mobility of the workers and their possibility to migrate along the west “frontier” forced employers to pay relatively high wages. In order to compensate this it was necessary to introduce innovative technologies, to replace man by machine. Everybody followed the “American Dream”, the thought of fundamental equality, the conviction to be able to gain a fulfilled life by self-disciplin and own initiative. This in turn conditioned a very success- and achievement-oriented behaviour and good working morale and especially immigrants came with puritanic (religious) ideas of diligence and modesty to America.
Both in the USA and in foreign countries much capital for investments was available, banks provided large credits. The machines enabled very high effieciency increase.
The railway and canal network was built up properly soon and by the this way established, excellent infrastructure it was possible in particular to get and process the raw materials such as wood and oil, which due to the expansion in the west seemed to be of an immeasurable amount. The catastrophic, ecological consequensences of the overexploitation showed only in the 21th century.
The under this favorable conditions produced goods could be sold on a huge internal market, that was secured by high protective tariffs against foreign (European) competitors. In addition, the state did not interfere into economic affairs exept for an absolute minimum. The policy of economic liberalism (“laissez faire”) and protectionism promoted the economy and led to an unprecentended boom period. Certainly, many of the aforementioned factors were also present in the European countries but only in the United States everything met.
The USA also benfited from World War I, while the European nations was weakened due to the immense damage and loss of this first “industrialized” war. They were highly indebted to the United States. They claimed very (too) high reperations from Germany in the Treaty of Versailles to pay their war debts and reconstruction. Germany, in turn, borrowed money for that porpuse from the United States. This very lucrative circuit made the USA finally to the world´s largest economy.

The economic success was now as mentioned the basis for the consumer society. Industrial mass production made consumer goods affordable. Moreover, the real income of workers increased, while working hours decreased; the eight-hour day was introduced. By the change in the ratio of labor and leisure demand for new services, such as cinema, services for the car, vacation etc. arose. Luxery items were offered in mail order catalogs and became affordable by hire-purchase. Often consumer loans were exepted since goods became prestige objects and brands important. The social pressure intensified; consumption is becoming a status symbol.
The high standard of living also had a high price. Only by perfectly rational, scientific management of firms ("Taylorism", "Fordism"), that only focused on maximazing profits, consumer goods could be produced for such low prices. The fact that this caused complete depersonalisation was noticed but not considered by employers and economists. Industrial workers lost their individual relation to work. Poor working conditions of assembly line work had both physical and psychological consequensences. With the chance of unskilled workers in the labor market the risk of unemployment and social decline increased. There were vitually no advancement opportunity and simply less demand on skilled workers so a the greater differentition within society was product.

Overall, the man as individual became the man as part of a mass of consumers. As such, many of course took part in the electrification and motorization of the time and therefore a high standard of living. But the worker, however, was fully subordinate to economic principles and suffered from heavy loads, particularly the rural population. That the purchasing power could not permantly rise as much as production capacity showed in a greater extend only in the “Black Friday” and the “Great Depression”.

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