Henry Ford

Cycle of Prosperity

• More money avaliable to spend on consumer goods
• More demand
• Increased production
• Increased employment

The Model T Ford

• Henry Ford set out to build a car that anyone could afford
• In reality, it was slow, ugly and difficult to drive
• It was nicknamed the "Tin Lizzie"
• However, the attraction of the Model T Ford was that it's price never increased
• Costing only $950 in 1909, by 1928 it was $295
• By 1929, Henry Ford was produced more than one car per minute

Mass Production

• Henry Ford was able to sell cars cheaply as they were mass-produced
• Every part was standardised - only one colour and one engine size
• By producing large number of cars on an Assembly-Line, Henry Ford needed less skilled-workers
  • Therefore cutting the cost of paying wages