The Roaring Twenties The Economy of the Twenties

When the doughboys returned to the United States after World War I, they discovered there were many well-paying jobs. They found more money available and new products to spend it on. Some new inventions of the time included:

• automobiles

• record players

• appliances such as washing machines and refrigerators

• canned food

• ready-made clothes

• movies

• radio

The use of credit cards started in the United States during the 1920's. Individual companies such as hotel chains and oil companies began issuing them to customers for purchases made at those businesses. People could buy "on time". All they had to do was put a little money down and make payments each month. These companies charged interest. This was usually a percent of the purchase to pay for this service.

Others began investing in the stock market. They bought shares of the new growing companies of America. Business owners were spending this money to expand their businesses.

Chain stores began to grow. In 1920 the A&P Company had 4,000 stores. By 1929 it had almost 16,000.

Many companies grew around the automobile industry. Jobs were created not only in making the cars but in car upkeep such as tires and gasoline. The Standard Oil Company grew from only 12 gas stations to more than 1,500 by 1929. Henry Ford used the assembly line method to build the new Ford Model T. By using this method, cars could be made more quickly and for less money, so the middle class citizen could afford to purchase them. Cars changed America. Because of cars, people could go far from home in search of jobs and entertainment.

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