Figure 1.-- Here we see a very modest American about 1930 with their automobile, in this case a Ford Model-A. The fact that they had a modest income can be deduced from their clothing and home in the background. It is fascinating that this modest family and their car illustrate one of the most important developments that not only made the modern world, but saved Western Civilization from the horific socialist totalitarian powers of the 20h century.

No mechanical device affected the American economy in the 20 century more than the automobile. Much of the growth in the American economy after the turn-of-the 20th century was centered on the new automobile. Americans did not invent the automobile. Here the Europeans led the way. The automobile was invented in German, but had only a limited impact on European economies. No so in America. What the Europeans y produced was a craft product a high-priced play thing for the wealthy. Workers ha to live near thevfactory where they worked. They purchased bikes to get to work. This was the situation in America as well at the turn of the century. A large number of companies made small numbers of autos--all high priced and beyond the purchasing power of workers--even American workers who earned more than European workers. The contribution to the economy was minimal. Bicylcles were more important. Henry Ford changed all of this. Ford produced eight versions of cars before the revolutionary Model T (1908). He started out making high-priced cars like the other companies. The Model-T was different. Ford got the price down to $260. It turned the automobile from a luxury item and plaything for the wealthy. Ford's Model-T became a necessity for the average Joe meaning workers amd farmers. It was inepensive, versatile, and simple, meaning easy to maintain. The United States by 1870s was exceeding economic production levels beyond the great European powers (Germany, France, and Italy) and equaling Britain. Maddison, Angus. Contours of the World Economy, 1–2030 AD. ] And before the turn-of-the 20th-century America a surpassing the great European powers just in manufacturing. The United States by 1910 was beginning to approach the economy of those powers combined and by 1940 (before massive war damage), the American economy reached that level. Much of that masive economic growth in the 20th century was due the automobile industry. And Ford's Model-T was an important factor in the phenoneal success of the Amerian automobile industry. Not only did the industry provide well-paying jobs with good benefits, but there important linkages with supplier industries. Jobs and production in the auto industry support many more jobs and production in supplier and service industries--giving it an oversized role in economy. Not only did the American automobile industry make cars that its wokers could afford, but in doing so dominatd car production aound the world. American subsidiaries led the industry in Britain, Germany, and the Soviet Union. And very importantantly, the United States was the only important automobile manufacturer that also had an important oil industry. As atomobile production increased, the American oil industry shifted from keroscene to gasoline. Amrican trucks played an important role in World War I, but it was the industry centered on the automobile and trucks that provided the back bone for the arsenal of democracy that helped smash the NAZIs and Japanese militarists in World War II. Interestingly, two evil men saw the impotance of the automobile industry--both Stalin and Hitler. Fortunately neither had an industry like America built on economic (capitalism) and political (democracy) freedom. American industry including the automoible industry would also provide the security umbrella that would allow free societies to flourish during the Cold War. It was always difficult for the Soviets to expalin while it was the 'exploited' workers and farmers in the West that had cars, refigerators, and working machines. An in the workers paradices not only could not afford such industrial marvels, but faced constant food shortages. It is not accident that the it was workers led by Solidarity in Poland that began the unraveling of the Soviet Union. Leading in short order to the implosion of the Soviet Union itself.

Early Automobiles

No mechanical device affected the American economy in the 20 century more than the automobile. Much of the growth in the American economy after the turn-of-the 20th century was centered on the new automobile. Americans did not, however, invent the automobile. Here the Europeans led the way. The automobile is generally attributed to Gerany (1896). Quite a few people were working on it. There were different ideas about propulsion, including electrical and stean-powered cars. The internl combustion engine eventually won out. Karl Benz was the first put it all together. The automobile had a very limited economic impact. What the Europeans produced was a craft product a high-priced play thing for the wealthy. Their output was epensive products that quickly became luxurios and high-powered. Workers had to live near the factory where they worked. They purchased bikes to get to work. This was the situation in America as well at the turn of the century. A large number of companies made small numbers of autos--all high priced and beyond the purchasing power of workers--even American workers who earned more than European workers. The contribution to the economy was minimal. Actual car production was minimal. Bicylles were more important. All kinds of small companies began making automobiles. The pattern in each of the major European countries was remarkably similar. This was also the pattern in America--until 1907-08.

America

The automobile was created by French and German industrial pioneers (late-19th century). In America a patent attorney, George B. Selden, was awarded a patent for an automoble (1895). American automobile manufscturers actually began paying him royalties, setting up an extended legal battle with none other than Henry Ford. American and European companies at the turn of the 20th century made small numbers of luxury autombiles (early-1900s). They were done in very small numbers and very expensive. There was a large number of small manufactuerers. Working=-class Americans walked some mghht have bicycles. Astonishly, in the space of 4 years, three American mechanics with no scientific bsckground changed the world -- changed that would dominate the 20th cenbtury. The Write brothers would build the first heavier-than-air flying machine (1903). Than Henry Ford revolitionized the indudtry with the Model-T Tin Lizzy. Ford did not invent the basic technolofy for the automobile. That already existed at the time he began working on the Model-T. What Ford did was to make a play-thing for the well-to-do, a utilitarin vehicle for the farmer and urban worker. Ford adapted assembly line for automobile manufacturing as well as designing a very basic design. He took a further inprecedented step, paying his workers $5 a day, more than teice wha most industrial worjkers were erning. This was enmough to purchase one of the cars. Notably, $2 a day wasmore than most European workers were earing. Thus rather producing small numbers of luxury cars, Ford took the vital step of applying assembly line manufacturing techniques to motor vehicle contruction. The result was the Model-T--a vehicle for the average man. Ford worked hard at msking it inexpensive and American workers were paid enought to aford one. The result was a huge new industry for America's already expanding industry. Ford wiuld dominae the autiomotive industry for more than a decade, but he was not the only player. William C. Durant founded General Motors (1908). GM was initiaslly intendedv as a holding company for the Buick Car Company. Durant, howeever, saw opportunities. He began buting some of the biggest names in the automotive industry, comapies thst had launched the industry. They had all been eclippsed by Ford, including Cadillac, Oakland (Pontiac), Oldsmobile, and companies priducing trucks--the future of GMC Truck. GM would become a real competitior in the 1920s. At the time, the United States was the largest industrial economy in the world. The automobile industry enabled it to grow far beyond the capacity of the European countries. The reulting economic boom resulting from the automobile industry created an industrial juggernaut far beyond the potential of the Eurpeamn powers. Ford had rural America in mind, seeing that it would priove useful to them if he could create a rugged casr at an inexpensive price. It would solve the oproblenm of dustnce which isolted rural Anmerica. Ford also saw a market with industrial workers. Ford;s simple design and assembly line techniques created a car, inexoebnd=sive for farmers and workers. As a result, Ford managed the impoosible. The first Model-T tiuring car cost $950. Ford anaged to get thst down to $360 by 1916. Sales soard as the lower price made the Model T afordable to more and more Americans. Sales were an impressive 12,292 (1909). That was impressive in 1909 when other msnufscturers were still selling very small numbers. Ford increased sales to an incredable 0.5 million (1916). This made Ford the largest car manufacturer in Ametica which also meant the Wirld. Fiord became the largest car manufactured in America.

Britain

England was not active in thge earliest developmental stage of the automobile. England was strong in the electrical and mechancical business. And is out of this that sector that one of the most iconic names in the British motor ector came. Henry Royce founded his electrical and mechanical company (1884). It had nothing to do with automobiles at the time. The British relied on work being carried about in France and Germany (late-19th century). The British motor vehivle industry essentially began began with a Anglo-German friendship. Frederick Simms met Gottlieb Daimler. He secured the right to sell and manufacture Gottlieb’s high-speed gasoline (petrol) engine along with otherr related patents. Humber began manufacturing in Coverntry (1890). Simms' plans to manufacture Daimler’s engines were acquired by H.J. Lawson who began Britain's first serial-production automobile (1896). The Daimler compamy still exists in Britain, but it was basically overtaken by Jaguar. The first all-British motorize 4-wheel vehucle was designed and built by Herbert Austin (1900). He was the manager of The Wolseley Sheep Shearing Machine Company. The next year, Austin recived support the Vickers brother (Vickers Limited), 'Colonel Tom' and Albert Vickers (1901). Austin launched what would become Wolseley Motors in Birmingham (1901). It would be Britain's largest automobile manufacturer until Ford Motors entered the picture (1913). [Church] Sunbeam also began producing cars (1901) followed by Standard in Coventry (1903), Vauxhal (1903), Royce--future Rolls-Royce (1904), Rover in Comnventry (1904), Austin in Birmingham (1905), Morris in Oxford (1910), and Riley in Coventry (founded in 1890 but only began making cars in 1913). Of particular imprtance was fledgling auto maker Herry Royce met Charles Rolls, a London dealer in high-end cars. Royce agreed to manufacture cars to be exclusively sold by Rools under Rolls-Royce brand (1904). The partnership was sucessful and the Rolls Royce was inuncorporated (1906). They introduced the six-cylinder Silver Ghost (1907). It was aclaimed as 'the best car in the world'. Son nafter Henry Ford in America would introduce the Model-T Tin Lizzie. The tw cars could nit have been more different, but these two competing visions wiold have an enormous impact on World War II. A large number of other groups attempted to build cars. Many came out of the bicycle industry. This of coure the origin of the first heavier than airplane--the Wright Flyer. This was simply because the bicycle sector was such an important industry at the time. Some 200 groups tred to build autombiles that first decade. Half failed. British manufacturers built 14,000 vehicles, mostly cars (1910). Ford only a few years after launching the Model-T, opened up a factory in Manchester and became the leading British automobile manufacturer, producing 7,310 cars, a small fraction of Ford's American production. We are at this time unsure how Ford affected British manufacturing, especially mass production tecniques. We do not understand what Ford was doing in Britain. The number of cars prduced seem so small compred to its Anerican production that it seems hardly worth the effort. Wolseley built 3,000 cars, Humber (2,500), Rover (1,800 and Sunbeam (1,700). A karge number of smaller manufacturers brought the pre-World War I total to some 16,000 vehicles (1913). [King]

France

Germany

Some of earliest wok on the automobile occurred in Germany. The autmobile combined with the internal combution engine was a German invention. The automobile was invented by Carl Friedrich Benz (1844-1929), an engine designer and automotive engineer. His Benz Motorcar is regarded as the first practical modern automobile (1885). It was the first car put into serial production. He received a patent for the motorcar (1886). Benz is seen as both 'the father of the car' as well as the 'father of the automobile industry'. Americans tend to see Henry Ford as the firstv umprtant automobile industrialist. Benz has aa range of problemns. He had trouble getting anyone interested in his invention. So his wife Betha helped him get it off the ground. Nicolaus Otto developed a four-stroke internal combustion engine (late 1870s). Benz used it to power a coach (1887). This was the first automobile. Benz & Cie. was based in Mannheim and had an early lead. It was the world's first automobile plant and largest in the world at the time. its day. Another early German company was Daimler Motoren famous for the first Merrcedes, a griund breaking car (1901). The Mercedes was 35 HP car designed in 1901 by Wilhelm Maybach and Paul Daimler, for Emil Jellinek a Jewish entrepreneur. It was named after Jellinek' dasughter. Benz and Daimler Motoren Gesellschaft merged to form Daimler-Benz (1926). After seizing control of Germany, there was nothing Hitler liked better than tooling around the Reich in a oopen Mercedes. We susoect he did not know that the kine if cars was naned after a Jewish girl. The German companies that began making automobiles made fine vehicles, high-end beautifully crafted cars madfe by highly skilled craftsmen. This made German cars expensive and limited oriduction to rather small numbers. Merceds-Benz and iother German manufacturers had no interest in producung a low-cost car. This was where Henry Ford stepped in tio theautomobile story. He first designed a very basic, low cost car--the Model-T. And next his assembly line was a very eficient manufacturing system. And it akkowed Fird to use wirkers wuth little to know skills. This difference would fundamentally alter autimotic=ve and 20th century history. German workers could not even dream of owning a car. American wirkers could. Germany was producing about 900 cars a year by the turn of the 20th century). Gottlieb Daimler was a major participant in the industry. They were, however, made in essentially craft shops in small numbers and were very expensive. The automobile was a play thing for the wealthy. More progress was made in France and Britain, but nothing along the lines of what occured in America, especilly begining with Henry Ford's Mode-T Ford (1907)

Italy

The Italian auotomible industry began in the late 19th century. Enrico Bernardi built a gasoline-fueled tricycle (1884). Stefanini-Martina was the first manufacturer (late-1880s). Giovanni Battista Ceirano started building Welleyes bicycles (1888). He decided an English name provided an up-scale image. The Turin car cluster played a key role. 【Enrietti, et. al.】 Ceirano formed a joint venture with his brothers Matteo, and Ernesto to build the Welleyes motor car -- Ceirano GB & C (1898). The brothers quickly encountered financial problems. A consortium of well-heeled local nobility and businessmen led by Giovanni Agnelli purchased the Welleyes operation including the designs and patents (1899). The consortium was the Fabbrica Italiana Automobili Torino (FIAT). Their first car was Fiat 3 ½ HP. Theyb produced eight cars. 【Anonymous】 The Welleyes/FIAT 4 HP had a 679 cc engine and was capable of 22 mph. Isotta Fraschini opened a plant (1900). They produced the first Renault. Other plants soon followed, including, Aquila Italiana, Fratelli Ceirano, Societé Anonima Italiana Darracq - Darracq, Diatto, Itala, Junior, Lancia, Societé Ceirano Automobili Torino, STAR, Rapid, SPA, and Zust. These were all small operations essentially craft shops producing small numbers of high-priced for wealthy individuals. FIAT won the first of its many victories in automobile racing. Vincenzo Lancia, won the Torino Sassi-Superga (1902). Anonima Lombarda Fabbrica Automobili (ALFA) which became Alfa Romeo was founded (1910). Basic and technical education was important in early developments. 【Enrietti, et. al.】 Wesee the many small producers manufacturing large, prestigious, luxury vehicles. While many of the early Italian cars were trechnically sound, no Italian company was trying to produce really low-cost cars for the public. The Fiat Balilla was the lowest price Italian pre-War car, but hardly something that workers could even dream of purchasing. Of course, the major factor here was that Italian workers were so poorly paid that they could not afford to buy cars. Wages in the north approached European levels, but many in southern Italy were outside the monied economy. This was essentially the worst situation for any of the major Europpean powers.

Turning Point

Modst of the early work on automobiles occurred in Europe, but Americans were interested and several small companies were interested. The compnies involved had virtually no economic impact. The Europeand did not take the Americn companies seriously. (The samecwas true of th grouos working on viatriion at avout the same time. In fsct American zand uropoean companoes were at about the same level. And the cars in many ways were comprable. Akl large, powerful expensive products of craft shops. What would make a najor ipact would be Henry Ford and his Model-T that workers coukld purchase.

The Great New York to Paris Auto Race (1907-08)

The autmobile was in infancy at the turn of the 20th century. It was not even clear what firm of propulsion would be adopyed. And there was no infrastrucgture. Inside big cities there ws no problem, but beyonf th cities there was no infrastruture, incvuding gas stations and improvd roads. Yjios was asn espcially serious proiblemsd ouside of the more irbanized Northeast. othrer issues were roadside reasturants, rioadmos, road signs, motels and much else. Outside of the big cities few people had seen car, even in Western Europe and Amderica. Onn Asia there was no understanding that uch contrption exist. The idea of automobilr races had begun, but were still verry new. We enjoyed the Tony Curtis movie -- "The Great Race" (1965) about an early around the World automobile race, but had no idea tht there actully was such a race. The Paris newspaper Le Matin and the New York Times announced that they were sponsoring 'The Great Race: New York to Paris by Automobile' (1907). The prize was a 1,400‐pound trophy and proving that the winning company built reaslly impressive cars. The race began in Nre York's Times Square (February 12, 1908). There wre six cars entrbts from four countyries. (Americ, France, Germbny, and Italy). It would become a 169-day test for first place winner nd much longer fof the others that ctuly finished. The comanies particioating no longer existed. Apparently the better estblished compnies did not wanbt to oiy up tgheir cars aginsrt sych an absurd race. Apparently there wre no Amrerican entrants until President Roosoveklt intervend bd got the Tomas Aiymobile Compny to enter a car. across the United States, through areas with very few improved roads, and then north to Alaska (by boat) and then across the frozen Bering Strait into Siberia. Then across Siberia to Moscow and then on to Paris. The proposed route wasactually basically that of the movie, although thy crossed the Pcific in ship rather than an iceberg. Crossing the still rther Wold West was a chllrnge, crossing Manchuria abnd Siberia was a ninumental adventure. The winner was the American entant (Julkyu 30, 1908). The German tean arrived 4 days earlirr , but had cheated. The Italins Italians reached Paris in September. YThe Frencvh had to drop out because of mechanical proivlms.

Henry Ford and the Assembly Line (1907)

The autombile was invented in Germany. But it was seen as a novelty for well-to-do people. America changed that. Henry Ford changed all of this. Ford produced eight versions of cars before the revolutionary Model T (1908). He started out making high-priced cars like the other companies. The Model-T was different. Ford got the price down to $260. It turned the automobile from a luxury item and plaything for the wealthy. Ford's Model-T was within the price range of the average worker. This was accomplished not only by the design of the Model-T, affectionately called the 'Tin Lizzy', but by manufacturing techniques--princupally the assembly line. Instead of the workers moving, the car was amoved as it was assembled in theolant. These techniques were not widely adopted in Europoe. In fact the tradition of European craftsmanship, especially in Germany, rejected the very idea. Assembly line efficent manufacturing became standard in America. The Europeans continued to manufacture cars in small quantities for high-income consumers. The result was an even wider industrial disparity between America and Europe. Cars and trucks began crowding American streets while horse carts were more common in Europe. Ford's Model-T became a necessity for the average Joe meaning workers amd farmers. It was inepensive, versatile, and simple, meaning easy and innepensive to maintain.

Economic Trends

The United States by 1870s was exceeding economic production levels beyond the great European powers (Germany, Britain, France, and Italy). And before the turn-of-the 20th-century America a surpassing the great European powers just in manufacturing. The United States by 1910 was beginning to approach the econmy of those powers combined and by 1940 (before massive war damage), the American economy reached that level. Much of that masive economic growth in the 20th century was due the automobile industry. And Ford's Model-T was an important factor in the phenoneal success of the American automobile industry. As an historian put it, 'America arrives". [Roberts] American economic growth did not taper off after the turn of the 20th century. Nor did European immigration. After the turn of the 20th century, the automobile became a major part of the American economy. The American economy was not just larger than that of Euroran countries, it was now twice the size of the British and German economies and much larger than all the other countries. [Maddison] And this was just when the American automobile industry was at an early stage of development just before World War I. In adittion, Amnerica unlike Britain and Germany and other industrail viuntries was selff suffucebtbin fooid production as well as many rawe materials, especially oil which was becoming important.

Linkages

Not only did the industry provide well-paying jobs with good benefits, but there important linkages with supplier industries. Jobs and production in the auto industry support many more jobs and production in supplier and service industries--giving it an oversized role in economy. Not only did the American automobile industry make cars that its wokers could afford, but in doing so dominated car production around the world. American subsidiaries led the industry in Britain, Germany, and the Soviet Union.

Oil

And very importantantly, the United States was the only important automobile manufacturer that also had an important oil industry. . A black gold rush began in Pennsylvania (1850s). It was part of a series of developments that would make America the most important industrial power by the turn of the 20th century. One of the titans of indudtry was John D. Rockefeller who created a vast mononoly--the Standard Oil Company. The United States controlled most (85 percent) of the world production and refining of oil. Much of this came to be controlled by Rockefeller's Standard Oil monopoly. Rockefeller's monopoly was not to sell gassoline, but primarily kerosene (paraffin) which became the primary home lighting fuel with the decline of the whaling fleet. As atomobile production increased, the American oil indutry shifted from keroscent to gasoline. Oil drilling and petro-chemicals became a part of the American mining complex (mid-19th century). At the time, there was only a limited market for oil, but this changed as kerosene began to become an important home lighting product and then with the perfection of the internal combustion engine, creating a demand for gasoline and diesel. America and Russia were the only industrial countries with domestic oil resources. This would have a major inpact on the 20th century.

Impact

Amrican trucks played an important role in World War I, but it was the industry centered on the automobile and trucks that provided the back bone for the arsenal of democracy that helped smash the NAZIs and Japanese militarists in World War II. Interestingly, two evil men saw the impotance of the automobile industry--both Stalin and Hitler. Fortunately neither had an industry like America built on economic (capitalism) and political (democracy) freedom. American industry including the automoible industry would also provide the security umbrella that would allow free societies to flourish during the Cold War. It was always difficult for the Soviets to expalin while it was the 'exploited' workers and farmers in the West that had cars, refigerators, and working machines. An in the workers paradices not only could not afford such industrial marvels, but faced constant food shortages. It is not accident that the it was workers led by Solidarity in Poland that began the unraveling of the Soviet Union. Leading in short order to the implosion of the Soviet Union itself.

World War II

American and European companies made small numbers of luxury autombiles (early-1900s). There was a very large number of small manufactuerers. Henry Ford revolitionized the infudtry with the Model-T Tin Lizzy. Rather than making small numbers of luxury cars, Ford took the vital step of applying assembly line manufacturing techniques to motor vehicle contruction. The result was the Model-T--a vehicle for the average man. It was inmexpensive and American workers were paid enought to aford one. He result was a huge new industry for America's already expanding industry. At the time, the United States was the largest industrial economy in the world. The automobile industry enabled it to grow far beyond the capacity of the European countrues. The reulting economic boom resulting from the automobile industry created an industrial juggernaut far beyond the potential of the Eurpeamn powers. American motor vehicle production was something like 80 percent of world production. American motor vehicle production would be an important factor in World War I--primrily the trucks. When World War I began, transportation was just beginning to make the move from horse carts to trucks. In this trasition, Europe was far behind Anerica, in large part thanks to Ford's Model-T. World War I proved to be a major turning point in transportation. Before the War, goods wre mostly delivered to cities by rail and then horse-drawn waggons to wholesalers and reyailers. This shift began in America with the introduction of the Model-T Ford. Soon small trucks began to be built by Ford in large numbers. And the advantages of motorized vehicles soon became apparent. The Germans asked for an armistice before American industry had fully covered to war production. The automobile sector was of huge economic importance. The automible industry continued to grow in the Roariung Twnties, but production declined some 75 perceny after the Wall Street Crash (1929-32). The industry began to grow again as the economy began to revive (late-1930s). World War II wouild be very different than in World War I. The American automotive industry would play a crucially important role. And it was far larger than in World War I. In fact the American automotive industry had an economic footprint larger than the entire economies of most countries. The American automobile industry washard hit by the Depression. Curiosly many of the unemployed owned cars. Will Rogers quipped, "America was the first country to go to the poor house in the auromobile." The mass production of cars was still largely an American phenomenon, but Europe was beginning to change. In contrast to the Germans, the American automobile industry was fully capable, but American did not have a substantial army to equip. Instead American automobile companies in 1939 were having their first good year since the onset of the Depression, chuning out sleek new cars using large uany\tuies of steel, copper, and chrome. After Pearl Harbor (December 1941), President Roosevelt after nearly a decade of lambasting businessmen, he called then 'economic royalists.' he turned to them in a desperate effort to save America. And he understood the importance of the automotive industry. World War II was an industrial war and industry would be America's route to victory. In fact, the President called the leading and hugest paid businessman (Outside Hollywood) in the country--the chairman of General Motors--William Knudsen. His job became to mobilize the Arsenal of Democracy for war and the automobile industry would be a major part of it. America would not only arm it's own military, but help arm it's fighting allies. And at the heart of the production miracle that followed would be Knudsen and the American automotive industry. America had dominated the sector before the War. Unlike other countries, it was not only the well-to-do who owned cars in America. Henry Ford had brought the automobile within the purchasing power of the average worker. And a huge industry had grown up to fill that demand.

Cold War

The American autmobile industry played a different role in the Cold War than World War II. The Americans and the Soviets won the battle of production. Here it was not only what the Americns abnd Soviets did right, but what the Germans did wrong. The Cold War returned to more normal economic terms. And thus the outcome would turn on the effincency of Soviet socialism and Western capitalism. The Soviet Government had some advantages in war. They could reduce consumer cinsumptguon to virtually starvation levels. The Americans had to operate as more of a command economy. In peace time the Soviet advantage narrowed. They had to increase deliveries to the civilian consumer sector, at least to some extent. And now they were something against Western economies and not the NAZI economy. And as America and Western Europe returned to a civilan ecoinmy the effiencies of the free market began to operate. This mant that cpitalism generated wealth and prosperity. Sociazlist command economies destroyed wealth. Commonly the inputs to Soviet factories were worth hmore than the manufactured output. Soviet manufactured goods were not competive on world markets. This could be hidden by Soviet authorities. But it is clear that it was the case because when the Soviet Union imploded (1991), Soviet manufacturing companies soon went bankrupt. In World War II, the automotive industry was central because of the weapons that were needed to wage the War. This changed during the Cold War. The automotive industry was still important. The utimotiv industries in Western Euopean was central to the Economic Miracle that occurrd there. The Soviet Union devloped only a very small automobile industry. In addition the Western ecomomies diversified with all kinds of new industries. Something that occurrd to a much lesser extent than in the West. The Soviets could build military weaponry, but never mastering blue jeans or other products consumrs wanted. And than the Siviet economy began to stagnate. It continued to be inefficent and proiduction increases ware no longer being achiuved.

Sources

Maddison, Angus. Contours of the World Economy, 1-2030 AD

Roberts, Andrew. A History of the English Speaking People--Simce 1900

Created: 7:39 PM 5/17/2019
Last updated: 10:54 PM 7/14/2023