The American Congress also helped the economy by lowering income taxes. People had more money to spend on new goods. Another important reason for economic growth was a change in the way American companies were operated.
During the nineteen twenties, the idea of manufacturing goods in the most scientific way became very popular. The father of this idea of "scientific management" was an engineer, Frederick Taylor.
Mister Taylor developed a system to study manufacturing. He studied each machine involved in the process. He studied how much work each person did. He studied how goods moved from one part of a factory to another. Then he offered ideas to business owners about ways to produce goods faster and for less cost.
Taylor's ideas of scientific management appealed to business owners. Automobile manufacturer Henry Ford proved that the ideas could work in his new car factory in the state of Michigan. Ford used the assembly line system of production. In this system, each worker did one thing to a product as it moved through the factory. This helped cut prices and increase wages.
Ford and other businessmen learned a great deal about how to control costs, set prices, and decide how much to produce. All these changes in production and marketing helped Ford and other American companies grow larger and stronger.
Henry Ford's Model-T car became popular throughout the country. So did other new products. Radios. Refrigerators for cooling food. Vacuums to clean carpets. Ready-made cigarettes. Beauty products. Americans in the nineteen twenties began to buy all kinds of new products they had never used before.