Life in the Roaring Twenties Questions and Answers

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In what ways did the increasing popularity of the automobile contribute to economic growth in the United States during the 1920s?

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The automobile had a huge impact on the economy in many ways. To begin with, Ford needed workers for his new production method, the assembly line. To entice workers, he paid more than twice the normal hourly wage other workers were getting at the time. This alone pushed more money into the economy and the impact grew from there. 

Car ownership grew at a fast pace in the U.S. and by the 1920s, 8 million cars were registered in the country with that number nearly tripling to 23 million by the end of the decade. 

The huge numbers of people owning cars impacted many other industries. Car tire companies needed tires from the factories which meant the...

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