Reuters. 1. By the turn of the century, the U.S. was still the world's top automaker, but in less than a decade it would suffer a major decline as a devastating recession set in. U.S. Department of the Treasury. Bureau of Labor Statistics. "Why Did Henry Ford Double His Minimum Wage?" "Labor Force Statistics from the Current Population Survey." Under the Eisenhower administration in the early 1950s, a national network of interstate highways was built. When the system was completed, a driver could cross the country on the four-lane roads from New York to Los Angeles without encountering a single red light. CreationCars required insurance coverage, which accounted for hundreds of millions in revenue for insurance companies. Roads and traffic systems were put in place to direct people from place to place as a result of the automobiles. U.S. Department of Transportation. The popularity of automobiles reverberated throughout the economy in other ways, as it created the need for a number of other smaller industries. U.S. Department of Defense. Unemployment figures declined to 8.3%, according to the government's Bureau of Labor Statistics., Miraculously, also in 2012, like a phoenix rising from its own ashes, the U.S. automobile industry seemed to be recovering from its financial woes. The auto industry bailout of GM, Ford, and Chrysler cost $80 billion. "Olds Motor Works Founded." In 1769, the first automobile, a steam-powered carriage that would carry up to four people at two miles per hour, was created. Why are workers 'incapable' of managing a plant by themselves? Federal Highway Administration. In early February 2012, however, news reports showed the multi-billion dollar U.S. automotive industry was enjoying a brisk recovery, and both GM and Chrysler have paid back the government bailout loans. Accessed April 30, 2020. Two years later, Oldsmobile and Cadillac made cars with the first fully automatic transmissions. In 1941, Packard became the first brand to offer air conditioning., Post World War IIAmerica's mighty economic resources and manufacturing capacity were turned to the great military challenges confronting it. Economic Policy Institute. Explain how the automobile industry in the 1920's had an impact on the national economy similar to that of the railroad industry in the 1870s and 1880s. "During WWII, Industries Transitioned From Peacetime to Wartime Production." When the war ended in 1945, pent-up consumer demand for new cars created a new boom in the industry and profits hit new highs. He may not have invented the vehicle, but he did revolutionize how they’re manufactured, which made cars affordable enough for people outside of the upper class. Entirely new businesses, or subsidiaries of existing business, were created to meet the needs of the automobile industry as it grew incrementally year after year. This was a Steam car. automobile industry. The oil industry provided many jobs. As the Tariff Debate Rages, the Chicken Tax Lives On, new car sales declined precipitously, reflecting the overall decrease in consumer spending, purchase homes by the generous terms of government insured loans, Ford raised his workers' pay to an unprecedented-at-the-time $5 a day, doubling the average salary, The Decline and Resurgence of the U.S. Auto Industry, Ford Reports a Record $14.6 Billion Loss for 2008, Your Arsenal: Chrysler and World War II Production, Celebrating 50 Years: The Eisenhower Interstate Highway System, Automobile Registrations, Passenger Cars, Total for United States, State Motor Vehicle Registrations, by Years, 1900-1995, Why Did Henry Ford Double His Minimum Wage, The Great Depression Tested NADA and Dealers before Recovery Began, The Evolution of Automobile Air Conditioning, During WWII, Industries Transitioned From Peacetime to Wartime Production, The Automobile in American History and Culture, January 9, 1958 – Toyota and Datsun Come to the USA, Economic Contribution of the Automotive Industry to the U.S. Economy – An Update, GM Posts Record Loss after $39 Billion Charge, U.A.W. 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