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RE: LeoThread 2026-02-27 17-46

in LeoFinance2 months ago

Part 3/15:

Ford's core innovation was the moving assembly line, which reduced the time to assemble a Model T from 12 hours to just 93 minutes, slashing its cost by 70%. By 1924, the price dropped to $260, making cars affordable for the masses. This price decline spurred exponential growth: from 200,000 cars nationwide in 1908 to 15 million by 1927.

This democratization of mobility didn’t just replace horses; it reshaped society—suburbanization, road trips, drive-in restaurants, and new lifestyles flourished as transportation costs shrank. This pattern—where reducing costs leads to exponential increases in usage—is known as Jevons Paradox: efficiency improvements often trigger a surge in demand.

The Cycle of Cost Reduction and Demand Explosion