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The major impact of radio on the economy was that it brought advertising into American homes. In a time before television, the radio was the greatest invention prior to the advent of the internet. It provided a source of entertainment which reached millions of American homes within three years. Although radio programs were entertaining, they had to be paid for; and this brought about the commercial. Everything from aspirin, toothpaste, soft drinks, etc. were advertised on radio. The commercials were a huge success and businesses saw sales of their brand names boom. Thus the effect on the economy of the radio was immense.
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