The Automobile and the Economy The effects the automobile has had on the economy of the world are tremendous. The major effects have came in many ways and include sales of the automobile, jobs provided to sell and manufacture the automobile, gas/oil sales to run the automobile, and the start of auto racing sport. The revolution of the automobile was the start of the most popular and successful industry in the world. The Effect of Gas/Oil There is a great effect on the economy due to the sale of gas. The major effect of how much gas is sold is how efficient the particular automobile uses gas and what automobile the people choose to buy. Since the start of production of the automobile fuel efficiency has steadily increased for the most part thanks to better engineers, tires, and laws that force better efficiency. First, The Energy Policy and Conservation Act of 1975 established C.A.F.E. (corporate average fuel economy) which was meant to steadily increase fuel efficiency in passenger cars every year (http//www.cnie.org/nle/air-10.html#summ) . The only problem was oil prices softened and the demand for small cars that were the most efficient diminished. As a result, the N.H.T.S.A (National Highway Traffic Safety Administration) was forced to relax the standard of the model years 1986-1989. The standard for automobiles of today is 27.5 miles per gallon. In the 1990’s the United States had an increased urgency raise their standards as they were more dependent on importing oil instead of producing it. Currently, the Clinton Administration is going to great depths to try to increase fuel efficiency. Bill Cliton made a partnership with the domestic industry to develop a new... ... middle of paper ... ...mobile Manufacturing Industries Act”. October 27 1996. Internet Explorer. Online. March 1 1998. http://www.japanauto.com/about/hjai_01.html “Auto Production to Expected 3 Million Next Year”. Short Takes. Internet Explorer. Online. September 17 1997. http//www.korta.co.kr/ki/issues/1997/11-12/short.html “Automobile Fuel Economy”. CRS Issue Brief for Congress. Internet Explorer. Online. October 8 1997. http//www.cnie.org/nle/air-10.html#summ “Do Automobile Fuel Economy Standards Work?”. Do Automobile Fuel Economy Standards Work?. December 10 1996. Internet Explorer. Online. March 10 1998. http//www.azfms.com/DocReviews/Dec96/art3.htm “How TV Wizardy Made Stock Car Racing the Hottest, Family-friendliest Sport Around”. Nascar Nation. December 11 1997. Internet Explorer. Online. March 11 1998. http://www.mci.newscorp.com/tv/magazine
The United States recession (which lead to a world recession), began in 1997 and significantly impacted the United States automobile industry during the recession period. The United States automobile industry is still reeling from the effects of the recession throughout the period of economic recovery that continues today. According to Chu and Su, “In this credit-driven recession, one of the hardest hit sectors was the automotive industry, along with the housing and financial markets. Chrysler and General Motors were pushed into bankruptcy; and 276,000 jobs in the automobile and parts industry were destroyed, a whopping 36 percent of the total employment in the sector”.
In this year Henry Ford created the first affordable, combustion engine car called the Model-T. The creation of the Model-T changed the lives of every American. Vehicles were looked at as a way of freedom and excitement. Soon after, every household in America had a car. The demand for vehicles sparked a whole new industry, creating jobs, more revenues and improving the American economy in every way. With so many vehicles on the roads, roads needed to become bigger and better which spawned a nation wide road construction. This also created more jobs and strengthened the economy even further. (Inventions: Car)
During the Great Depression, every work place was hit hard and many were out of work. The demand for vehicles declined, and the automotive industry took a hit. Once the Second World War began, the automotive industry was given a push in the right direction, and their vehicle production flourished...
The developments in transportation changed the American economy and society from 1820 to 1860 in ways of an increased land value, faster traded goods, new cities, and a deeper sense of nationalism. Before these changes came about, the US economy and society was based on an agrarian setting. After this time frame, American Society turned into a capitalist marketplace. In the northern US, there were few changes in terms of industry because they were involved in an industrial revolution. However, the new Transportation Revolution blasted the West into an agricultural empire that provided consumable exports to the other parts of the country.
I am a husband and a father of four lovely children. We need a large vehicle to haul all of us around town. And of course I would do anything to keep them safe and I always want to provide them with the best. Therefore, after the birth of our fourth child two and a half years ago, my wife and I decided to upgrade our Ford Explorer to a Ford Expedition. We got everything from the side-curtain airbags to the TV and DVD player. What we did not know was we also purchased a rather large unleaded gas bill. The first time we filled the tank it cost us roughly $35; today it costs us right around $75 to fill the tank. Obviously the price of gas has increased significantly in the last two years. The price increase is due to a fluctuation in the supply and demand of not only gasoline but also crude oil, which is needed to manufacture gasoline. In addition, several other factors are influencing a change in the price of gasoline.
on a car as it passed them. A skeleton of a car went in and after each
The automobile industry was the reason behind the mass production of materials needed to construct a vehicle and new roads, by using the assembly line method brought about by Henry Ford. After seeing how successful the automobile industry was doing, it lead to an increase in motor related occupations like insurance, agents, and gas stations. Then, as the concept of sub-urbanizing occurred to many, the development of schools, commercial constructions, hospitals and other attractions grew enormously (Faue). As the automobile sales prompted many new industries for the need of common goods, the life of an American was changing quickly and even more jobs opened up. This domino effect that arose from automobiles was innovating America and brought more choices to the common person since he or she is opened to such vast markets. Ultimately, the automobile started a chain reaction that resulted in numerous new companies opening for business, which fueled the US economy. Ergo, the concept of consumerism grew where people decided what they want to buy, and that economic shift is what lead to the bloom of the US economy in the
For over 100 years, the automobile industry has relied on gasoline as its main source of fuel. Gasoline is a colorless, highly flammable substance used in internal combustion engines. It is a fossil fuel made from crude oil, a natural gas formed from the remains of ancient plants and animals (Webster‘s Dictionary). Gasoline has positively influenced our way of life by providing convenient, on demand transportation. It has created a global economy that moves people and goods faster and more easily than ever imagined (Povey 12). Although a seemingly perfect substance, it has unprecedented flaws. The tremendous political, environmental, and economic problems resultant from the excessive use of gasoline leads to the conclusion that the automobile industry should not continue to rely on this source of fuel.
The automobile has made a dramatic impact on many different aspects of American society. The automobile industry has aided in the creation of malls and other large shopping areas, theme parks, hotels and motels, highways, and assorted drive through businesses such as banking and fast food. The vast popularization of cars and other automobiles has also impacted society negatively. Car accidents and other auto related death has increased as well as noise pollution, and the formation of a larger carbon footprint. The popularization of cars has also lead to a greater dependence on fossil fuels and other natural gases (Cohen). The creation of the first automobile had a severe impact on the lives of ordinary people. The automobile created a new lifestyle
The automobile created freedom and transportation for many. The automobile was no longer just limited to the wealthy but to anyone who could afford them. Making the automobile more affordable gave individuals the opportunity to move around and travel on their own time. The automobile represented a new outlook on the world. Another way the automobile presented freedom is that
We see cars in our everyday lives, as transportation and sometimes even toys and model cars. So what else are they used for? Advertising is a big thing that cars do; for instance NASCAR FANS can see the most advertising just by flicking the tv on and watching what they like to see. They have different sponsors that they represent as advertising(Automotive History). Without your name being on a business card it can be broadcasted on a car that thousands of people can see as you drive by. It also made the market for different items much more competitive. For instance, going back to NASCAR, Jimmy Johnson represents Lowes and Joey Lagano represents the Home Depot. Therefore, if a customer were to like lowes better than The Home Depot the may like the driver Jimmy Johnson more. The Automobile shaped the cities we live in today, by the roads that surround the suburbs, and only some had to take the train or ride a bike, while others were able to just hope in their car and go where ever they please. When the car first appeared to the middle class public, it was a big deal because it was not just an upper class...
Finally, many car companies make more efficient cars and hybrid cars. Companies trying to boost their sales through efficient cars and lower gas cost for the consumer. Because of the higher prices of gas consumers are looking for more efficient cars. Gas prices left big companies like Ford, Toyota, and Dodge slow which it had a direct effect in the economy and the workforce. Many people lost their jobs over the passed six months because of the effect of the slow economy.
A vehicle is one of the biggest purchases a person will ever make. Over the years, the prices of an automobile have increased due to the rise of inflation. Due to a price index, the price of an automobile changes over a certain period of time. Economists compare averages of automobiles to calculate the cost of each vehicle that presents itself on a car lot. When all of the above is calculated within the purchase of an automobile, it affects every area of making the automobile to selling the automobile. All of these factors are impacted together for the automobile industry as a whole.
ton mileage over the past 30 years. This is mostly due to the increase in truck
Today’s society relies heavily on cars for transportation. Car’s allow people the freedom of traveling from one place to another easily and at any time. In 1913 Henry Ford Made cars affordable and accessible to everyone with the assembly line. Henry Ford’s assembly line was able to produce 1 car every 12 hours (history.com) . The advancements of technology have made cars more reliable and wanted more than ever. Car companies like Nissan, Honda, Tesla, and Chevy have become more conscious of the environment and invented cars that run on electricity.