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    The Age of the Automobile [ushistory.org]

    46a. The Age of the Automobile

    Cruising in automobiles such as the Duesenberg pictured above was popular in America, but this typically Sunday afternoon family past time was largely discontinued during the depression.

    Perhaps no invention affected American everyday life in the 20th century more than the automobile.

    Although the technology for the AUTOMOBILE existed in the 19th century, it took HENRY FORD to make the useful gadget accessible to the American public. Ford used the idea of the ASSEMBLY LINE for automobile manufacturing. He paid his workers an unprecedented $5 a day when most laborers were bringing home two, hoping that it would increase their productivity. Furthermore, they might use their higher earnings to purchase a new car.

    Ford reduced options, even stating that the public could choose whatever color car they wanted — so long as it was black. The MODEL T sold for $490 in 1914, about one quarter the cost of the previous decade. By 1920, there were over 8 million registrations. The 1920s saw tremendous growth in automobile ownership, with the number of registered drivers almost tripling to 23 million by the end of the decade.

    Economic Spin-offs

    The growth of the AUTOMOBILE INDUSTRY caused an economic revolution across the United States. Dozens of spin-off industries blossomed. Of course the demand for vulcanized rubber skyrocketed. Road construction created thousands of new jobs, as state and local governments began funding highway design.

    Motorsports Hall of Fame

    The famous 'Ford 999' racer from 1902. Although it is not the first race car ever built, it is certainly the first car to rise to the status of legend.

    Even the federal government became involved with the FEDERAL HIGHWAY ACT OF 1921. GAS STATIONS began to dot the land, and mechanics began to earn a living fixing the inevitable problems. Oil and steel were two well-established industries that received a serious boost by the demand for automobiles. Travelers on the road needed shelter on long trips, so MOTELS began to line the major long-distance routes.

    Even cuisine was transformed by the automobile. The quintessential American foods — hamburgers, french fries, milk shakes, and apple pies — were hallmarks of the new roadside DINER. Drivers wanted cheap, relatively fast food so they could be on their way in a hurry. Unfortunately, as new businesses flourished, old ones decayed. When America opted for the automobile, the nation's rails began to be neglected. As European nations were strengthening mass transit systems, individualistic Americans invested in the automobile infrastructure.

    Effects of the Automobile

    The social effects of the automobile were as great. Freedom of choice encouraged many family vacations to places previously impossible. Urban dwellers had the opportunity to rediscover pristine landscapes, just as rural dwellers were able to shop in towns and cities. Teenagers gained more and more independence with driving freedom. Dating couples found a portable place to be alone as the automobile helped to facilitate relaxed sexual attitudes.

    Americans experienced TRAFFIC JAMS for the first time, as well as traffic accidents and fatalities. Soon demands were made for licensure and safety regulation on the state level. Despite the drawbacks, Americans loved their cars. As more and more were purchased, drivers saw their worlds grow much larger.

    Source : www.ushistory.org

    Unit 3.1 Test Flashcards

    USH Standards 15 & 16 Learn with flashcards, games, and more — for free.

    Unit 3.1 Test

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    For which of the following reasons did the United States elect to enter World War I?

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    Unrestricted submarine warfare had led to attacks on US shipping vessels, and the conflict threatened the economic interests of the country abroad.

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    What role did Mexico play in the United States' decision to enter World War I?

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    Germany tried to persuade Mexico to invade the United States

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    1/30 Created by GehlhausenGCA

    USH Standards 15 & 16

    Terms in this set (30)

    For which of the following reasons did the United States elect to enter World War I?

    Unrestricted submarine warfare had led to attacks on US shipping vessels, and the conflict threatened the economic interests of the country abroad.

    What role did Mexico play in the United States' decision to enter World War I?

    Germany tried to persuade Mexico to invade the United States

    The sinking of the RMS Lusitania is viewed as one of the factors that turned public sentiment in the United States away from remaining neutral. How could the sinking of a British ship have this effect?

    The ocean liner was en route from New York City and its sinking by a German submarine caused the deaths of 128 US civilian passengers.

    Which of the following groups were hired in large numbers for the first time during World War I?

    African Americans and women

    Why did the population of African Americans decline in the South at the turn of the 20th century?

    The onset of World War I created job opportunities in northern cities as demand for industrial goods soared and workers were sent overseas. African Americans, seeking employment and an escape from the violence and discrimination in the Jim Crow South, migrated in record numbers.

    President Woodrow Wilson's Fourteen Points statement emphasized

    freedom, openness, and respect among nations in political and economic affairs.

    Why did the leaders of the Allies resist following Woodrow Wilson's Fourteen Points in the negotiations that concluded World War I?

    They believed Wilson did not outline a harsh enough punishment for Germany.

    Why did the fear of communism spread and intensify dramatically in the United States in the 1910s, leading to the Red Scare?

    The communists who were victorious in the Russian Revolution called for a worldwide communist revolution.

    What was one result of the Red Scare in the United States in the years after World War I?

    the limiting of the number of people allowed to immigrate to the United States

    This cartoon from 1920 shows Soviet leader Vladimir Lenin seated on a throne and holding Mars, the god of war, on a leash. Which sentence accurately describes how this cartoon is related to events in the United States around 1919-1920?

    Fears of Communist expansion led to multiple arrests connected to the Red Scare.

    How did the ratification of the Eighteenth and Nineteenth Amendments demonstrate the impact of Progressive Era reformers?

    by illustrating the success of women's efforts in the temperance and suffrage movements

    How did the Eighteenth Amendment cause an effect opposite to its intention?

    The amendment sought to reduce crime resulting from the consumption of alcohol, but in fact it led to the rise of organized crime in the United States.

    Which of the following is one way that the automobile industry affected the growth of cities?

    People came to urban centers where auto manufacturing plants and related industries were located.

    What was a major economic change after WWI?

    Production and technology are directed toward consumer goods

    How did people react after new products entered the market after WWI?

    People invest their personal savings in the stock market.

    Which of the following accounts for the growing popularity of movies during the 1920's in the United States?

    They offered an escape from the harsh realities of the world.

    What was one effect of the growing popularity of radio in the 1920's?

    Advertisers reached more Americans than before, which led to the growth of consumer culture.

    What contributed to the Harlem Renaissance?

    African Americans escaping Jim Crow violence in the South brought their art and culture to Harlem, New York.

    Which of the following was NOT a contributing factor that led to the Harlem Renaissance?

    Jim Crow laws in the North that prevented African Americans from joining labor unions or being hired by government agencies

    Why were the Espionage Act of 1917 and the Sedition Act of 1918 used by President Woodrow Wilson's administration during World War I?

    to silence critics of the war effort

    What MOST LIKELY prompted the inclusion of a point about freedom of the seas by President Wilson?

    German attacks on civilian ships during World War I

    How did technological innovations lead to increased national unity in the United States after World War I?

    Popular radio broadcasts provided a shared cultural experience for millions of citizens.

    During World War I, the Zimmermann Telegram was intercepted by the United States and found to contain what suggestion, to be undertaken if the United States entered the war?

    Source : quizlet.com

    The contribution of the automobile industry to technology and value creation

    How can India's auto industry build momentum for growth?

    The contribution of the automobile industry to technology and value creation


    How can India's auto industry build momentum for growth?

    The automobile industry is a pillar of the global economy, a main driver of macroeconomic growth and stability and technological advancement in both developed and developing countries, spanning many adjacent industries. For developing countries such as India, understanding the auto industry's evolution in other countries offers a roadmap forward.

    India's auto industry is the world's sixth-largest producer of automobiles in terms of volume and value. It has grown 14.4 percent over the past decade, according to the Society of Indian Automobile Manufacturers (SIAM). With more than 35 automakers, the industry contributes 7 percent to India's GDP and is responsible for 7 to 8 percent of India's total employed population.

    To maintain auto's primary role in growth, India must make the right moves at all critical junctures. This paper examines how the industry, government, and key stakeholders in other countries have propped up their auto industries, and how India and other emerging markets can use the same strategies to build growth momentum.

    Auto's contribution to the global economy

    The core automotive industry (vehicle and parts makers) supports a wide range of business segments, both upstream and downstream, along with adjacent industries (see figure 1). This leads to a multiplier effect for growth and economic development. Furthermore, R&D and innovation within automotive can benefit other industries, such as the insurance industry's use of innovative ideas (for example, automotive telematics).

    Automotive contributes to several important dimensions of nation building: generating government revenue, creating economic development, encouraging people development, and fostering R&D and innovation (see figure 2).

    Generating revenue. The automotive sector contributes significant tax revenues from vehicle sales, usage-related levies, personal income taxes, and business taxes. Production and sales of new and used vehicles, parts, and services deliver excise, sales, value-added, and local taxes and import duties. For instance, in Japan, auto-related taxes totaled $7.72 billion in 2012, roughly 9 to 10 percent of all tax revenues, according to the Japan Automobile Manufacturers Association.1 In the United States, auto contributes $135 billion per year, including 13 percent of state tax revenues and 2 percent of federal tax revenues. In India, duties collected from sales of motor vehicles, accessories, and fuel contributed 7 to 8 percent of central tax collections in 2012.

    Additionally, as automakers reap the benefits of globalization through exports, they also generate foreign exchange earnings. This is crucial to a country's current-account performance and trade balance with other economies. Not surprisingly, the share of automotive exports is higher in developed countries than in emerging economies—18 percent in Germany and 17 percent in Japan, compared with 6 percent in Brazil and 5 percent in India. However, for some developing economies, 4 to 6 percent of export earnings are offset by vehicle imports and auto components.

    Economic development. The automotive industry is important to global economic development. Globally, automotive contributes roughly 3 percent of all GDP output; the share is even higher in emerging markets, with rates in China and India at 7 percent and rising.

    There is also a close correlation between foreign direct investment (FDI) inflows and automotive output, particularly in developing economies. For example in China, the correlation between growth in auto output and FDI is almost 1 to 1, as the automotive industry's rise has closely tracked that of China's economy. Automotive FDI also brings investment in related industries and can lead eventually to the development of a wider automotive ecosystem. In South Korea, for example, 40 percent of total FDI in 2000 was for the automotive industry, providing the country a crucial step out of its recession following the 1997 Asian financial crisis. Today, South Korea is the world's fifth-largest vehicle producer, and has benefited from a multiplier effect as adjacent industries (such as steel and finance) also profit from the growth (see figure 3). Steel sales, for example, went from 55 thousand tons in 2002 to 210 thousand tons in 2012. Every job in the core auto industry leads to more than four additional jobs in upstream or downstream industries.

    Economic development is primarily in two areas:

    Industrial development. Across the world, auto is a spark for regional development. Industrial clusters form as original equipment manufacturer (OEM) plants are surrounded by component manufacturing facilities, including steel plants, glass manufacturers, used car dealerships, aftermarket shops, and transportation service providers. These clusters lead to new municipalities with solid road infrastructures, railway and freight connectivity, and new housing developments. Most major auto economies have these clusters, including Detroit in the United States and Ulsan in South Korea. In developing countries, these clusters include the ABC region near São Paulo in Brazil; Pune, Gurgaon, and Chennai in India; and Guangzhou province in China, where more than 55 automakers, 100 component suppliers, and 200,000 workers now reside. In 2007, Guangzhou contributed to 13 percent of China's total GDP and had a GDP per capita roughly 75 percent higher than the national average.

    Source : www.es.kearney.com

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