Prosperity of the 1920's affected many Americans improve their lives. Many middle-class citizens improved their standard of living by purchasing new products such as electric irons, vacuum cleaners, washing machines, toasters, fans, and refrigerators. They were now able to purchase these consumer goods because companies began to reward and pay their workers more money. These companies, such as Ford cars, doubled the wages of the workers at the plant in Highland Park, Michigan. Since wages increased, purchasing goods and cars became affordable. The increase in America's wealth shifted the economy because businesses flourished to serve the needs of the consumers. Not only were the consumers prosperous, but so were the business owners. Since Henry Ford offered a 5 dollar wage a da

y to workers of "thrifty habits," his company earned an estimated $264,000 per day because of the sales so many different companies started to follow Ford's reasoning of increasing wages. Not only did prosperity of Americans bring new consumer goods affordable, it also brought education to children and credit to shoppers. Most people could afford to keep their children in school longer because they were finally prosperous enough to survive without the children's wages. By the end of the decade, 51 percent of all high school age youth were in school. Credit was brought to shoppers because they were starting put money down and paying the balance in installments. Americans bought with credit because they regarded it as an easy way to raise their standard of living. The increase of wealth in the American society brought great change and benefits to the people.

Even though Americans prospered with lives of wealth and entertainment, economic conflicts drove many families to a life of poverty. Not all Americans were prosperous, such as farmers, miners, and textile workers. Farmers had replaced their workhorses with tractors that produced more wheat and corn than America would consume. Because supply exceeded demand, farm prices declined and left the farmers poverty-stricken. The era of the 20's brought hardships to coal miners because industries began to use electricity and no longer needed coal to run their machinery. Due to the changes in fashion, Americans were buying less cotton and the prices of them plunged. The decade also brought new technology that the family-run firms could not afford nor compete with the big business. Therefore, thousands of small firms went out of business or were absorbed into larger companies of corporations. The act of merging resulted in unemployment and job loss

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Approximate Word count = 1225
Approximate Pages = 5 (250 words per page double spaced)