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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